By Halimah Olamide
Minister of Power, Mr. Adebayo Adelabu, on Wednesday declared that Nigeria cannot continue to subsidise electricity.
Adelabu, at a press conference In Abuja, adding that the country needs to start implementing what he called “a cost-effective tariff model.”
The minister said that subsidies for electricity has greatly reduced adding that while subsidies for electricity stands about N2 trillion, only N450bn was budgeted for subsidies in the 2024 Appropriations.
Adelabu added that the country owes Generating Companies (GenCos) N1.3 trillion and gas companies $1.3billion.
He said State Governments will be allowed to generate power independently to supply power to their States.
He claimed the reasons behind the approximately six grid collapses that have occurred since December 2023 are the shortage of gas, aging equipment in the grid value chain, a limited ability to evacuate generated power, and the destruction of power plants in certain areas of the nation’s northeastern geopolitical zone.
According to him, the Transmission Company of Nigeria(TCN) has over 100 unfinished projects because of differences in contract figures caused by fluctuations of the forex, as a result, the company won’t issue any new contracts until all projects are completed.
The Minister added that the 2024 budget has over N50 billion set aside for the construction of small grids that will provide electricity to isolated locations.