Minister of Power, Adebayo Adelabu, has issued a warning to Nigerians about the upcoming introduction of electricity tariffs that will accurately reflect the true costs of power.
He emphasized that the country’s economy can no longer sustain electricity subsidies.
Adelabu conveyed this message 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.
Currently, the Federal Government owes Generating Companies (Gencos) over N4 trillion in unpaid subsidy payments.
According to the Nigerian Electricity Regulatory Commission (NERC), the actual average tariff per kilowatt-hour is N116.18, while consumers are only charged N88.2 per kilowatt-hour. In February, the subsidy cost per kilowatt-hour was revealed by the gap between the real tariff and the average collection, totaling N27.97 per kWh.
With the exception of the 15 percent categorized as Band A, all customers in the Nigerian Electricity Supply Industry (NESI) receive a subsidy.
“The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians.”
