Minister of Power, Adebayo Adelabu, has proposed that President Bola Tinubu’s administration should contemplate the elimination of electricity subsidies in order to promote the efficient utilization of energy in the country.
Adelabu raised concerns about the insufficient electricity supply in Nigeria, attributing it to various factors, including outstanding subsidy debts.
He suggested that if the federal government is unable to settle the subsidies owed to the market, Nigeria should transition to a fully cost-reflective tariff system.
Adelabu shared these perspectives during his visit to the Olorunsogo Power Generating Plant in Ogun State and the Omotosho Generating Plant in Ondo State, as part of his nationwide inspection of federal government power installations.
He highlighted the challenges faced by the National Independent Power Plants (NIPPs) managed by the Niger Delta Power Holding Company Plc (NDPHC), such as under-capacity utilization due to consistent gas supply issues.
Adelabu emphasized the necessity for a comprehensive review of the electricity subsidy framework, urging the federal government to fulfill its subsidy commitments or consider transitioning to a fully cost-reflective tariff. He also pledged to collaborate with power companies to enhance operational capacity, improve power supply, and address outstanding subsidy payments.
Additionally, Adelabu expressed his commitment to exploring measures that would support power plants in operating at optimal capacity to enhance nationwide power supply.
