Tinubu halts electricity tariff hike, advocates for subsidy
Minister of Power, Adebayo Adelabu, revealed that President Bola Tinubu recently intervened to stop the proposed increase in electricity tariff and stressed the importance of maintaining subsidies for power consumption nationwide.
At a press briefing in Abuja, the minister also addressed the Federal Government’s commitment to investigate the legality of the five-year licence extension granted to privatised power distribution and generation companies, emphasizing that the operating licences of these firms were initially set to expire on October 31, 2023.
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Adelabu further stressed that he would not hesitate to dismiss any non-performing chief executive in agencies under the power ministry, underlining the need for efficiency and accountability in the sector.
Regarding the call for a cost-reflective tariff, the minister emphasized the sensitivity of the power sector and the necessity to achieve regular and incremental power supply before implementing such an adjustment.
He acknowledged the gap between the ideal cost-reflective tariff and the current allowed tariff, attributing the government’s handling of this gap as a form of subsidy, impacting liquidity, investments, and causing various constraints in the system.
Adelabu specified that the government’s decision to sustain the subsidy was aimed at mitigating hardship for the citizens, especially in light of recent economic challenges, and prioritized the need for extensive sensitization and communication before any future tariff adjustments.
According to Neptune Prime, the minister also addressed concerns about gas prices and their impact on power generation and tariff costs, highlighting the interconnected nature of gas power plants and their reliance on gas as a primary raw material. He emphasized the need for systematic and communication-driven tariff adjustments in the future, aligned with assured incremental and regular power supply.
Adelabu acknowledged the shortcomings in Nigeria’s current power generation, citing efforts to address the situation and the necessity for improved performance from all players in the power sector to support the national interest.
Regarding the privatization of the power sector in 2013, the minister highlighted the potential for government intervention in power distribution companies and the possibility of reviewing their territorial coverage to improve service delivery.
In conclusion, the minister emphasized the national interest and encouraged all stakeholders in the power sector to align with the collective vision of ensuring efficient and reliable power supply for the nation.
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