The Federal Government announced on Wednesday that Nigeria’s power sector owes approximately N3.3tn to electricity generating companies and gas producers.
Additionally, it disclosed that the projected electricity subsidy for 2024 is about N3tn, far surpassing the allocated N450bn in the current budget.
Minister of Power, Adebayo Adelabu, emphasized the necessity of transitioning to a cost-effective tariff model.
Adelabu acknowledged the sector’s debt, revealing N1.3tn owed to electricity generators and $1.3bn to gas companies.
Despite calls for his resignation, he affirmed his commitment to resolving the crisis, addressing unpaid subsidies, and advocating for a sustainable approach to power generation.
Adelabu urged a national discourse on defining electricity as a commercial product or social service and proposed strategies for sector stabilization, including settling outstanding debts, exploring cost reflective tariffs, and promoting diversified power generation.
