Subsidy On Electricity Soon To Go, Says Power Minister, Adelabu

Minister for Power, Adebayo Adelabu
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The subsidy regime in the nation’s power sector is likely to go the way of the subsidy on petrol as the Minister of Power, Adebayo Adelabu, has disclosed that crippling debts in the electricity sector have made sustaining the subsidy regime impossible for the Federal Government.

Adelabu stated this in Abuja on Wednesday 14 February, 2024, according to a report by Channels Television.

Adelabu said only N450 billion was budgeted for subsidy this year but the ministry needs over N2 trillion for subsidy.

He said state governments will now be allowed to generate power independently to supply power to their states.

On the national grid which has collapsed for about six times between December 2023 and now, Adelabu said this 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 has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.

The minister also said over 50 billion naira 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said electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have their licence withdrawn.

The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu, to help provide security for power infrastructure.


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