May 27, 2024

Electricity subsidy can’t continue – FG

 

 

By: Oluwapelumi

 

The Federal government cannot continue to subsidise the power sector, Minister of Power, Adebayo Adelabu, has said.

 

Adelabu said this while expressing concerns over the poor electricity supply situation in the country caused by numerous issues including outstanding subsidy debts.

 

Briefing journalists in Abuja on Wednesday, the minister said the nation must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.

 

According to him, over N2 trillion needed for subsidy, only N450 billion was budgeted this year.

 

He said state governments will now be allowed to generate power independently to supply power to their states.

 

This is coming days after the International Monetary Fund (IMF) advised President Bola Tinubu-led administration to completely phase out electricity subsidy in the country, despite the hardship Nigerians are facing since the removal of fuel subsidy in May 2023.

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