Minister of Power, Adebayo Adelabu, has warned Nigerians to prepare for the introduction of tariffs that reflect the true costs of electricity.
According to him, the country’s economy can no longer afford to maintain electricity subsidies.
Adelabu stated this during a meeting with the Chairmen of Nigeria’s Generating Companies in Abuja.
We have to understand that our economy cannot sustain subsidies indefinitely,” he said.
The Federal Government presently has an outstanding debt exceeding N4 trillion owed to Generating Companies (Gencos) for overdue subsidy payments.
In its performance report for February, the Nigerian Electricity Regulatory Commission (NERC) indicated that the average real tariff stands at N116.18 per kilowatt-hour, whereas consumers are charged N88.2 per kilowatt-hour.
In February, the subsidy cost per kilowatt-hour was represented by the gap between the real tariff and the average collection, which amounted to N27.97 kWh.
All NESI customers, except for the 15 percent classified as Band A, benefit from a subsidy.
Adelabu’s spokesperson, Bolaji Tunji, quoted the minister as telling the power generation companies that, “Citizens must pay the appropriate price for the energy consumed.
“The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians.”
