The Federal government cannot continue to subsidise the power sector. This is according to the Minister of Power, Adebayo Adelabu.
While 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 N1.3 Trillion to generating companies, GenCos, and $1.3 billion to gas companies.
Minister Adelabu also said over N2 trillion is needed for subsidy, but only N450 billion was budgeted this year.
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Speaking further, he said state governments will now be allowed to generate power independently to cater to their states.
His statements come days after the International Monetary Fund (IMF) advised the President Bola Tinubu-led administration to completely phase out electricity subsidy in the country, despite the hardship faced by many Nigerians since the removal of fuel subsidy in May 2023.
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