Minister of Power, Adebayo Adelabu has said that the country needs to start implementing a cost-effective tariff model as it can no longer sustain subsidised electricity.
Speaking at a press briefing on Wednesday, February 14, Adelabu disclosed that the country owes Generating Companies (GenCos) N1.3 trillion and gas companies $1.3billion.
The minister who revealed that the ministry needs over N2 trillion for subsidy as only N450 billion was allocated to subsidy this year, further revealed that State Governments will be allowed to generate power independently to supply power to their States.
Adebayo also said the reasons behind the six grid collapses recorded since December 2023 are the shortage of gas, ageing 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.
He also said 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 further revealed that the 2024 budget has over N50 billion set aside for the construction of small grids that will provide electricity to isolated locations.
