Wednesday, February 14, 2024 - The Nigerian government has claimed it cannot continue to subsidize electricity because of huge debts already incurred.
This was made known by the Minister of Power, Adebayo Adelabu, during a press conference in Abuja on Wednesday.
Adelabu said the country must begin to move
towards a cost-effective tariff model, as the country is currently owing the
tune of N1.3trillion to generating businesses (GenCos) and $1.3billion due by
gas firms.
He further stated that just N450billion was
funded for subsidies this year, despite the fact that the ministry requires
more than N2trillion in subsidies, adding that state governments would now be
able to generate power independently to supply power to their respective
states.
He stated that the grid had collapsed six
times between December 2023 and now due to a lack of gas, ageing machines in
the grid value chain, insufficient capacity to evacuate generated power, and
the destruction of power stations in some parts of the country's North-East
geopolitical zone.
It was learnt that the Transmission
Commission of Nigeria has over 100 abandoned projects due to discrepancies in
contract figures caused by FX volatility, and that the business will not grant
new contracts until all such projects are completed, according to the power
minister.
The minister equally mentioned that over 50
billion Naira has been set aside in the 2024 budget to establish small grids to
provide power to remote locations.
He warned power distribution businesses
(DisCos) should sit up, or those found wanting will have their licence revoked.
The minister also stated that he had
contacted Nuhu Ribadu, the National Security Adviser (NSA) to assist with the
protection of power infrastructure.
The power minister’s remark came amid
speculation that the President Bola Tinubu-led government had returned the fuel
subsidy he removed during his inauguration on the 29th of May, 20
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