On the heels of fuel subsidy removal, President Bola Tinubu now aims to stop electricity subsidies due to budget constraints, Power Minister Adebayo revealed on Wednesday.
Addressing journalists in Abuja, Minister Adebayo Adelabu said Nigeria owes power generating companies N1.3 trillion and gas suppliers $1.3 billion. With only N450 billion budgeted for the sector and over N2 trillion needed to maintain subsidies, Tinubu’s government says it cannot continue electricity payment supports.
Consequently, States can generate independent power for their populations going forward, the Minister outlined.
Adebayo recalled that recent national grid collapses stemmed from gas shortages, aging infrastructure, insufficient transmission capacity and a few power Stations in North-East areas that have been destroyed
The Transmission Company of Nigeria also has over 100 stalled projects due to forex-triggered contract variations, as a result awarding new contracts have been halted temporarily. However, N50 billion was earmarked to build rural mini-grids in areas that don’t have access to the power grid
Adebayo further stated that he consulted National Security Adviser, Nuhu Ribadu for assistance to secure power infrastructure.
Tinubu had ended longstanding fuel subsidies upon his inauguration last May, a move that sparked spikes in price of fuel and public outcry. His newest move to cut electricity supports, amid economic limitations, may yield further economic pains for Nigerians.
