…tate govts to be allowed to generate, supply power
Nigeria’s Minister of Power, Adebayo Adelabu, says the country cannot continue to bear the burden of subsidising electricity and as such must begin to work towards formulating and actualising a cost-effective tariff model.
Adelabu says this is especially as Nigeria is currently indebted to generating companies (GenCos) to the tune of N1.3 trillion and likewise owes gas companies a staggering sum of 1.3 billion dollars.
Adelabu further says state governments will now be allowed to generate power independently to supply power to their states.
Speaking at a press conference in Abuja, Wednesday, Adelabu said only N450 billion was budgeted for subsidy this year but the ministry needs over N2 trillion to sustain the undertaking.
He said the collapse of the national electricity grid which has occurred about six times between December 2023 and now, was caused by shortage of gas, ageing machines in the grid value chain, low capacity to evacuate generated power and destruction of power stations in some parts of the North-East geopolitical zone of the country.
He said the Transmission Company of Nigeria (TCN) has over 100 abandoned projects due to variations in contract figures as a result of the fluctuations in foreign exchange rates and that the company will not award any new contracts till all such projects are completed.
The minister also said over N50 billion has been earmarked in the 2024 budget to build mini grids to supply power to remote areas.
He said electricity distribution companies (DisCos) should sit up, otherwise anyone found wanting will have his licence withdrawn.
The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu to help provide security for power infrastructure.
