Home News Electricity subsidy cannot continue – Power Minister
News

Electricity subsidy cannot continue – Power Minister

Electricity Tariff
An Electricity Grid

The Minister of Power, Adebayo Adelabu, has said Nigeria must begin to move towards a cost-effective tariff model because the Federal Government cannot continue to subsidise electricity as the country is currently owing Generating Companies (GenCos) N1.3 trillion and $1.3 billion is being owed to gas companies.

Adelabu made this known during a press conference in Abuja today. He said only N450 billion was budgeted for subsidy this year, but the ministry needs over N2 trillion for subsidy.

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

The Minister added that the Transmission Company of Nigeria has over 100 abandoned projects due to variations in contract figures as a result of the fluctuations of the forex.

Also, he said the constant collapse of the power grid was caused by the 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.

The Minister said that in the face of these daunting challenges, the Transmission Company will not award any new contracts till all projects it has awarded are completed.

 

 

About The Author

Related Articles

Bayer Leverkusen
NewsSports

Bayer Leverkusen win first Bundesliga title after 120-years

Bayer Leverkusen secured their first-ever Bundesliga trophy in their 120-year history, toppling...

The Economic and Financial Crimes Commission (EFCC) has announced a significant breakthrough in its ongoing investigation into financial misappropriation within the Ministry of Humanitarian Affairs.
News

EFCC Recovers $445,000, N3 Billion in Ongoing Probe of Humanitarian Affairs Ministry

The Economic and Financial Crimes Commission (EFCC) has announced a significant breakthrough...

Disco: For the umpteenth time, Nigeria's national grid collapses again
News

For the umpteenth time, Nigeria’s national grid collapses

Africa’s most prosperous oil-producing country, Nigeria, has been thrown into yet another...