President Bola Tinubu has halted the implementation of an electricity tariff hike and has called for subsidies on nationwide power consumption.
Minister of Power, Adebayo Adelabu, made these announcements during a press briefing in Abuja, shedding light on the federal government’s concerns and potential reforms in the Nigerian power sector.
One of the key issues raised is the investigation into the legality of a five-year license extension granted to privatized power distribution and generation companies. These licenses were initially set to expire on October 31, 2023, and the government is now scrutinizing the extension.
Minister Adelabu underlined the government’s commitment to ensuring that these companies deliver on their promises and obligations.
The Minister discussed the contentious topic of a cost-reflective tariff. He acknowledged that the power sector is sensitive and that it would be unwise to implement a significant tariff increase at this juncture due to ongoing economic challenges in the country.
Adelabu explained that, while a tariff adjustment is essential for long-term financial stability in the power sector, it must be done at the right time and with adequate public awareness and communication.
Minister Adelabu emphasized the need for improved power generation in Nigeria, describing the current state of affairs as “shameful and unacceptable.”
He also issued a stern warning to non-performing officials in his ministry and its associated agencies, emphasizing that poor performance could lead to dismissals.
This latest development comes as the government grapples with the complexities of the power sector, aiming to strike a balance between fiscal responsibility and the welfare of the Nigerian people.
As discussions continue, the nation eagerly awaits further updates on the government’s approach to addressing these critical issues.
