Bolaji Peters (SIWES student, Polytechnic Iresi)
The Federal Government has acknowledged the financial strain of continuing electricity subsidies amidst the escalating power debt in Nigeria,the challenges facing the country’s energy sector.
Nigerian Minister of Power, Adebayo Adelabu, emphasizes the unsustainability of the country’s massive debt owed to electricity and gas companies.
He advocates for transitioning to a cost-effective tariff model to alleviate debt burdens and ensure affordable, dependable energy access for citizens.
With N1.3tn owed to electricity firms and $1.3bn to gas companies, Adelabu underscores the imperative of prioritizing energy affordability and sustainability.
Adelabu reveals that the allocated N783bn for electricity subsidy in the 2024 budget falls short of the projected N2.9tn subsidy cost.
The electricity sector grapples with challenges like gas shortages, aging infrastructure, and power station damages in the North-East, leading to six grid collapses and widespread outages.
Urgent action is necessary to mitigate these issues and guarantee reliable electricity provision.
