The Minister of Power, Adebayo Adelabu, has stated that Nigeria cannot sustain its electricity subsidies any longer. He emphasized the need to transition to a more cost-effective tariff structure, highlighting the country’s outstanding debts of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed to gas companies.
Adelabu made these remarks during a press conference in Abuja on Wednesday, revealing that only 450 billion naira has been allocated for subsidies this year. He indicated that the ministry requires over two trillion naira to maintain the subsidy.
Additionally, the minister announced that states will now have the opportunity to independently generate power.