The Minister of Power, Adebayo Adelabu, has declared that the country can no longer continue to subsidise electricity.
The minister stated that Nigeria has to start moving toward a tariff model that is more economically viable. The nation is currently 1.3 trillion naira in debt to generating businesses (GenCos) and 1.3 billion dollars in debt to gas firms.
Adelabu made this announcement on Wednesday during a news conference in Abuja. He also revealed that this year’s subsidy budget was only 450 billion naira.
The ministry, he claimed, requires more than two trillion naira to implement subsidies.
The minister said that states will now be allowed to generate power independently.
