The Minister of Power, Adebayo Adelabu, has said that federal government can not continue subsidies electricity for Nigerians ,he reviews this while briefing the Press at State House on Wednesday in Abuja.
Adelabu emphasize on the issues of poor electricity supply across the States of the Nation which was caused by the grid that has collapsed for about six times between December 2023 and now ,due to shortage of gas,ageing machines in the grid value chain, low capacity to evacuate generated power, and destruction of power stations in some parts of North-East geopolitical zone of the Nation.
The minister maintained the need that the , nation must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.
He also said, over N2 trillion needed for subsidy, only N450 billion was budgeted this year, adding that state governments will now be allowed to generate power independently to supply power to their states.
He said the Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed
