The sustainability of electricity subsidy is no longer feasible, Federal Government declares. The Minister of Power, Adebayo Adelabu, emphasizes the challenge in sustaining the electricity subsidy and the escalating power debt in the country. Nigeria is indebted to the tune of N1.3tn to electricity generating companies and $1.3bn to gas companies.
Adelabu calls for a move towards a cost-effective tariff model and highlights the discrepancy between the budgeted amount for electricity subsidy (N450bn) in the 2024 budget and the projected amount (N2.9tn) by the Nigerian Electricity Regulatory Commission. The complexity of the power sector crisis is noted, with instances of the national grid collapsing multiple times due to various factors such as gas shortages, aging grid equipment, and low power evacuation capacity.
The press conference in Abuja had the heads of all the agencies under the Federal Ministry of Power in attendance. The article is contributed by Okechukwu Nnodim, a journalist with 15 years of experience covering various sectors including Energy, Finance, Agriculture, Environment, and more.
Culled from Punch