Federal Government may reverse decision to subsidise electricity tariff

📆 2/16/2024 2:05 AM
📰 GuardianNigeria

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Federal Government,Electricity Tariff,Minister Of Power

The Minister of Power, Adebayo Adelabu, stated that the sector is heavily indebted and the government may reconsider subsidizing electricity tariff. Power supply has significantly dropped due to the indebtedness to power generation companies and gas producers. The government has been indecisive in addressing the issues in the power sector, but Adelabu mentioned that a cost reflective tariff could be the solution.

The Federal Government may reverse its decision to subsidise electricity tariff as the Minister of Power, Adebayo Adelabu, said the sector is under heavy debt. Power supply to homes and industries have drastically dropped amid over N1.3 trillion indebtedness to power generation companies (GenCos) and other $1.3 billion to gas producers. The Federal Government in the last nine years have dilly-dallied with the power sector.

Perpetually handing over the sector to Ministers and head of agencies who have no technical expertise to overturn the despondent state of sector, President Bola Tinubu had suspended the increase in tariff in July last year and also truncated the January Multi Year Tariff Order which doubled the cost of electricity tariff. But Adelabu yesterday in Abuja said there cost reflective tariff remained the leeway for the sector, adding that only N450 billion was budgeted for electricity subsidy in 202

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