By Abdullahi Inuwa
Minister of Power, Adebayo Adelabu, has declared that Nigeria’s economy can no longer sustain electricity subsidies, urging Nigerians to brace for cost-reflective tariffs as the country faces a staggering N4 trillion debt to power generation companies.
Speaking during a high-level meeting with the Chairmen of Nigeria’s Generating Companies (Gencos) in Abuja, Adelabu emphasized, “We have to understand that our economy cannot sustain subsidies indefinitely.”
According to the Nigerian Electricity Regulatory Commission (NERC), while the true cost of electricity is N116.18 per kilowatt-hour, consumers are only paying N88.2—leaving a subsidy gap of N27.97 for every kilowatt consumed. Currently, only 15% of power users classified under Band A are excluded from this subsidy.
Despite the tough stance, Adelabu assured that the Federal Government will continue to offer “targeted subsidies” to shield economically disadvantaged citizens from the full brunt of rising power costs.
His spokesperson, Bolaji Tunji, reinforced the message: “Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for the vulnerable.”
To tackle the mounting N4 trillion owed to Gencos, Adelabu disclosed that a mix of cash payments and promissory notes will be deployed. “We recognise the urgency. At the minimum, let us pay a substantial amount in cash, then use debt instruments to clear the rest,” he said.
The minister’s remarks come at a critical time for Nigeria’s electricity sector, as stakeholders warn that the unpaid debts could cripple generation capacity and deepen the power crisis if not urgently resolved.
About The Author
