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Nigerians to pay more for electricity as FG moves to end subsidy

Nigerians to pay more for electricity as FG moves to end subsidy

Nigeria’s Minister of Power, Adebayo Adelabu, on Wednesday said the federal government cannot continue to subsidise electricity.

The minister, at a press conference in Abuja, said the country must begin to move towards a cost-effective tariff model, as the country is currently owing N1.3trillion to generating businesses (GenCos) and $1.3billion due by gas firms.

He further stated that just N450billion was funded for subsidies this year, despite the fact that the ministry requires more than N2trillion in subsidies.

He added that state governments would now be able to generate power independently to supply power to their respective states.

 

He stated that the grid collapsed six times between December 2023 and now due to a lack of gas, ageing machines in the grid value chain, insufficient capacity to evacuate generated power, and the destruction of power stations in some parts of the country’s North-east geopolitical zone.

The minister added that over N50 billion has been set aside in the 2024 budget to establish small grids to provide power to remote locations.

He warned power distribution businesses (DisCos) to  sit up, or those found wanting will have their licence revoked.

 

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