In a significant announcement, Minister of Power, Adebayo Adelabu, has emphasized the imperative for Nigeria to discontinue its subsidy on electricity. Addressing a press conference in Abuja on Wednesday, the minister highlighted the country's mounting debt to generating companies (GenCos) amounting to 1.3 trillion naira, along with an outstanding debt of 1.3 billion dollars owed to gas companies.
Adelabu stressed the necessity for Nigeria to transition towards a cost-effective tariff model. He revealed that the allocated budget for subsidy this year stands at a mere 450 billion naira, while the ministry requires over two trillion naira to sustain the subsidy.
Furthermore, the minister announced a significant policy shift, stating that states will now have the autonomy to generate power independently. This move marks a pivotal moment in Nigeria's energy landscape, reflecting the government's commitment to addressing the challenges within the power sector.
The minister's declaration underscores the need for strategic reforms to ensure the sustainability and efficiency of Nigeria's electricity supply. As the country navigates this transition, it is poised to embark on a path towards greater self-sufficiency and reliability in power generation.
Stay tuned for further updates as Nigeria embarks on this transformative journey towards a more robust energy framework.
