To prevent a growth in the N4 trillion in debt it owes the industry, the federal government is working to switch to a cost-reflective tariff, according to Minister of Power Adebayo Adelabu.
Speaking at the Mission 300 Stakeholders’ Engagement meeting in Abuja, the minister said that this was one of the changes aimed at putting the utility sector on a path toward sustainability and bankability.
Recall that energy users have been complaining about inadequate electricity supply and ongoing payments for defective electricity installations, even after Band A customers’ electricity tariffs were raised. However, Adelabu argued that the choice is crucial to Nigeria’s economic expansion and advancement. As of December 2024, there is a significant amount of unpaid government subsidies owed to the power producing businesses, totaling over N4 trillion. The federal government is already figuring out how to pay for this obligation, and in order to prevent future obligations, it is developing a plan to put the sector under a completely cost-reflective regime and provide targeted subsidies for the nation’s most economically disadvantaged citizens.
About The Author
