POWER MINISTER, ADELABU SUGGESTS REMOVAL OF ELECTRICITY SUBSIDY
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Minister of Power, Adebayo Adelabu, has suggested that President Bola Tinubu’s administration consider eliminating the electricity subsidy to enhance the efficient use of energy in the country.
Adelabu voiced this opinion while expressing concerns about Nigeria’s poor electricity supply situation and blaming it on a number of factors, including unpaid subsidy payments.
In the event that the federal government is unable to settle the subsidies owing to the market, he suggested that Nigeria switch to a complete cost-reflective tariff scheme.
The Minister, as part of his nationwide examination of federal government power installations, visited the 500-megawatt Omotosho Generating Plant in Ondo State and the 750-megawatt Olorunsogo Power Generating Plant in Ogun State, communicated these observations during the visit.
Adelabu emphasized the difficulties the Niger Delta Power Holding Company Plc (NDPHC)-managed National Independent Power Plants (NIPPs) experience, pointing out that persistent problems with gas supply have resulted in under-capacity utilization below 25%.
He emphasized the need for a comprehensive review of the electricity subsidy framework, urging the federal government to fulfill its subsidy commitments or consider transitioning to a fully cost-reflective tariff.
Adelabu also promised to work with electricity providers to resolve unpaid subsidies, boost operational capacity, and increase power delivery.
In reference to the turbines used to generate electricity, he pledged to investigate ways to assist power plants in running at maximum efficiency in order to improve the availability of electricity across the country.
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