The Minister of Power, Adebayo Adelabu, has declared that the Federal government cannot continue to subsidise electricity, adding that the country must begin to move towards a cost-effective tariff model amid the N1.3trillion debt he said the government owes generating companies (GenCos), and $1.3billion owed gas companies.
Adelabu disclosed the latest position during a press conference in Abuja on Wednesday, saying only N450 billion was budgeted for subsidy this year, whereas the ministry needs over N2 trillion for subsidy.
He said State governments will now be allowed to generate power independently and supply power to their residents.
On the grid that collapsed for about six times between December 2023 and this year, the minister said it was caused by 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.
He said the Transmission Company of Nigeria (TCN) has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.
The minister also said that over N50 billion has been earmarked in the 2024 budget to build mini grids to supply power to remote areas.
He said electricity distribution companies (DisCos) should sit up, warning of the risk of license revocation for non-performance.
The minister also said he has reached out to the National Security Adviser, Mr. Nuhu Ribadu, to help provide security for power infrastructure across the country.