Emmanuel OchayiPresident Bola Tinubu has halted the proposed electricity tariff hike, emphasizing the need for a nationwide subsidy on power consumption.
The revelation came from the Minister of Power, Adebayo Adelabu, during a press briefing in Abuja.
Join our WhatsApp ChannelAdelabu went on to announce a government investigation into the legality of the five-year license extension granted to privatized power distribution and generation companies. According to him, the operating licenses of these firms should have expired on October 31, 2023.
Adelabu declared his commitment to ousting non-performing chief executives in agencies under the power ministry, asserting that failure to deliver results could cost him his job as minister.
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Addressing the call for a cost-reflective tariff, Adelabu defended the delay, stating, “The power sector is very sensitive to any leader. You cannot jump overnight and implement the cost-reflective tariff.”
He revealed that President Tinubu had refused to raise the electricity rate, citing political considerations and the current economic challenges faced by Nigerians. Adelabu highlighted the subsidy as a crucial element in maintaining liquidity in the system.
Adelabu acknowledged the need for an eventual tariff increase but insisted it would be implemented after thorough public sensitization, communication, and a guaranteed improvement in power supply.
Expressing dissatisfaction with Nigeria’s current power generation of about 4,000 megawatts, Adelabu labeled it as “shameful and unacceptable.” He pledged efforts to increase this capacity.
Regarding the privatization of the power sector in 2013, Adelabu called it a mistake and hinted at the government’s potential reassumption of control over power distribution companies.
The minister also addressed the extension of licenses, emphasizing an ongoing investigation into its legality. He stressed the importance of a performance bond that power firms must meet, signaling changes in the sector’s structure.
Adelabu concluded by dismissing rumors of Nigeria supplying power to the Niger Republic, stating, “We have not started. We are just messengers, when they ask us to resume, we will resume.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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