Electricity Subsidy Has to Go: Adelabu Warns Nigerians to Brace for Higher Tariffs
Nigeria’s Power Sector Overhaul: Subsidy Removal and Tariff Hikes Loom In a decisive move to avert a total collapse of Nigeria’s electricity sector, Power Minister Adebayo Adelabu announced plans to phase out subsidies and implement cost-reflective tariffs. This follows urgent talks between President Bola Tinubu and power generation companies (GenCos) to resolve a crippling N4 trillion debt, signaling tougher times ahead for consumers. The N4 Trillion Debt Crisis: A Race Against Time Adelabu revealed that the federal government will: Immediate Cash Injection: Pay a “significant portion” of the debt to stabilize GenCos. Promissory Notes: Settle the balance within six months using financial instruments. Structural Reforms: Remove operational bottlenecks and lower levies to enhance market stability. “Without swift intervention, the entire power ecosystem could collapse,” warned Col. Sani Bello (Rtd), Chairman of the Association of Power Generating Companies. Why Subsidy Removal is Non-Negotiable Adelabu emphasized that Nigeria’s economy can […]