FG’s expenditure on electricity subsidy reached N700bn in 2023 – Minister

During his official visit to the Ibadan Electricity Distribution Company (IBEDC) Head Office, Minister of Power, Adebayo Adelabu, emphasized the need for an upward review of electricity tariffs to reduce the amount of subsidy required from the Federal Government.

Adelabu stated that making the tariff 100% cost-reflective would burden the people, so only a fraction of the review would be implemented. He also mentioned that the tariff review would be graduated, with higher rates for the high-income segment and lower rates for the vulnerable.

Adelabu highlighted the importance of improved power supply for the review to take place and assessed electricity infrastructure across the country during his visit.

Additionally, he mentioned his plans to commission solar-powered mini-grids in certain local government areas under the supervision of the Rural Electrification Agency.

The performance of the electricity sector has been deemed unsatisfactory, emphasizing the need for collaboration between government and private sector stakeholders. IBEDC, being the largest DISCO in terms of coverage, faces high expectations from consumers and is committed to meeting them.

President Bola Tinubu has prioritized stable power supply, recognizing its importance for economic growth and national development.

The visit to the Ayede substation aimed to explore the possibility of an upgrade and the establishment of a new substation in Ibadan to alleviate the load on the existing one.

Additionally, plans are underway to establish a new substation in Eleyele and UI, as well as upgrade the 132KVA substation in Oyo town.

These initiatives, along with ongoing substation projects in the Oke Ogun area, are expected to enhance power supply in Oyo State. Kingsley Achife, the CEO of IBEDC, highlighted the need for a correction in electricity tariffs due to the escalating cost of gas.

He emphasized the importance of liquidity and expressed gratitude for the government’s intervention. IBEDC has also established a transformer repair workshop at Eleyele and plans to double the number of transformers repaired this year. Furthermore, they have ordered 300 new transformers to be delivered in the next quarter.