Minister of Power, Adebayo Adelabu, has warned that Nigerians should brace for electricity tariffs that reflect the actual cost of supply, citing the unsustainability of current subsidy levels.
Speaking during a meeting with the chairmen of Nigeria’s power generating companies (Gencos) in Abuja, Adelabu said the economy could no longer support the financial burden of electricity subsidies.
“We have to understand that our economy cannot sustain subsidies indefinitely,” the minister said.
The Federal Government currently owes over N4 trillion to Gencos in unpaid subsidy-related debts.
According to the Nigerian Electricity Regulatory Commission (NERC), the average actual cost of electricity as of February stood at N116.18 per kilowatt-hour, while consumers were charged N88.2 per kilowatt-hour. The subsidy gap amounted to N27.97 per kilowatt-hour.
Currently, all customers under the Nigerian Electricity Supply Industry (NESI), except the 15 percent categorized as Band A, receive some form of subsidy.
Adelabu’s spokesperson, Bolaji Tunji, said the minister emphasized the need for citizens to pay appropriate rates for electricity consumed, while assuring that the government would continue to provide targeted subsidies for vulnerable groups.