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 expressed this viewpoint while raising concerns about the inadequate electricity supply situation in Nigeria, attributing it to various issues, including outstanding subsidy debts.
He proposed that Nigeria transition to a full cost-reflective tariff regime if the federal government is unable to settle the subsidies owed to the market.
The minister shared these insights during his visit to the 750-megawatt Olorunsogo Power Generating Plant in Ogun State and the 500-megawatt Omotosho Generating Plant in Ondo State, part of his nationwide inspection of federal government power installations.
Adelabu highlighted the challenges faced by the National Independent Power Plants (NIPPs) managed by the Niger Delta Power Holding Company Plc (NDPHC), citing under-capacity utilization below 25% due to consistent gas supply issues.
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 pledged to collaborate with power companies to enhance operational capacity, improve power supply, and address outstanding subsidy payments.
Regarding the turbines for power generation, he expressed a commitment to explore measures to support power plants in operating at optimal capacity to enhance nationwide power supply.