The federal government on Wednesday announced that it cannot “continue to sustain electricity subsidy”.
The Minister of Power, Adebayo Adelabu said the new development came after N450bn allocated to the power sector for subsidy could not service the ministry demands of over N2trn n
for subsidy.
Recall that the International Monetary Fund (IMF) In its report titled ‘IMF Executive Board Concludes Post Financing Assessment with Nigeria,’ reiterated the importance of eliminating the fuel and electricity subsidies to redirect resources towards more targeted and impactful social welfare programmes.
Advertisement
However, Adelabu in Abuja said the nation must begin to move towards a cost-effective tariff model as it is currently indebted to the tune of N1.3tn to generating companies (GenCos) and $1.3bn owed gas companies.
He said, “On the grid that has collapsed about six times between December 2023 and now was caused by a 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 the North-East geopolitical zone of the country.
“State governments will now be allowed to generate power independently to supply power to their states”.
The power minister noted that the Transmission Company (TCN) of Nigeria has over 100 abandoned projects due to variations in 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.
According to him, “Over N50bn has been earmarked in the 2024 budget to build mini-grids to supply power to remote areas”.
However, he warned electricity Distribution Companies (DisCos) to sit up otherwise anyone found wanting will have his licence withdrawn.
The minister also added that discussion is ongoing with the National Security Adviser, Nuhu Ribadu to help provide security for power infrastructure.
Sometimes I wonder if we (Nigerians) belong to the same planet as other inhabitants of the earth. With all humility, how can the minister make such comments as these? Freezers are meant to be powered all the time; the major energy consuming components in freezers and air-conditioning systems are compressors and fans and they are all regulated by temperature control devices; they do not run continuously. For crying out loud, most homes and businesses run private generators and it is so ridiculous for the minister to insinuate that such people waste energy because it is cheap!
Please for the purpose of preservation of respect for other Nigerians, our leaders should please be thoughtful about the arguments they bring to the table to support their decisions. Mr. Minister sir, Nigerians are not complaining about your increase in tariff, they are just indifferent about it because it is what you supply to them that you’ll be paid for. But please certain comments are just unsuitable for your fellow Nigerians who are by business implications also your customers – the kings and the queens.
I remain loyal to Nigeria, my country.