The Minister of Power, Adebayo Adelabu, has disclosed that the federal government is to stop electricity subsidy because its current subsidy debts stands at N1.3 trillion to generating companies (GenCos) and N1.3 billion dollars to gas companies.
The minister further revealed that only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.
The minister made this disclosure at a press conference in Abuja on Wednesday. He said state governments will now be allowed to generate power independently to supply power to their states.
Talking about the grid that has collapsed for about six times between December 2023 and now, he blamed it on shortage of gas, ageing machines in the grid value chain, low capacity to evacuate generated power, and destruction of power stations in some parts of the North-East geopolitical zone of the country.
He said the Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.
The minister also said over 50 billion naira has been earmarked in the 2024 budget to build mini grids to supply power to remote areas.
He said electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.
The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu to help provide security for power infrastructure.
