Nigeria’s Minister of Power, Adebayo Adelabu, says the federal government is preparing to transition to a cost-reflective electricity tariff to curb rising sector debt, now estimated at N5 trillion.
Speaking at a stakeholders’ meeting in Abuja, Mr Adelabu described the move as essential for ensuring long-term sustainability and investor confidence in the power sector.
Also Read: Power Sector Privatisation A Disappointment Says FG
He noted that despite recent tariff hikes for Band A consumers, electricity supply remains erratic, with many still paying for faulty infrastructure.
The government, he said, will introduce targeted subsidies for vulnerable groups, while phasing out blanket subsidies.
Priorities include resolving market liquidity issues, recovering idle generation capacity, and diversifying the energy mix with cheaper and cleaner sources to strengthen energy security.
Leave feedback about this
You must be logged in to post a comment.