Brace for Cost-Reflective Tariffs, Minister of Power, Adelabu tells Nigerians

The nation’s economy can no longer sustain electricity subsidies, Minister of Power Adebayo Adelabu has said.

He told Nigerians to brace for cost-reflective tariffs. “We have to understand that our economy cannot sustain subsidies indefinitely,” Adelabu pointed out at a meeting with the Chairmen of Generating Companies of Nigeria (GenCos) in Abuja.

He, however, reaffirmed government’s interest in providing targeted subsidies for economically disadvantaged Nigerians!”

He did not explain the category of Nigerians in the “economically disadvantaged” category. The Federal Government currently owes Generating Companies (Gencos) over N4 trillion in backlog subsidy payment.

In its February DisCos Performance report, the Nigerian Electricity Regulatory Commission (NERC) said the average actual tariff is N116.18kwh while consumers pay N88.2kwh.

The difference between the actual tariff and average collection, which is N27.97 kWh, was the cost of subsidy per kilowatt hour in February.

All NESI customers, except 15 per cent, which constitutes Band A, enjoy subsidy.

Adelabu’s spokesman Mr. Bolaji Tunji quoted the minister as telling the GenCos: Citizens must pay the appropriate price for the energy consumed.

The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians.”