President Bola Ahmed Tinubu has intervened and halt the implementation of a planned hike in electricity tariff.
The Minister of Power, Adebayo Adelabu, disclosed this information during a press briefing in Abuja.
He stressed the President’s insistence on subsidizing power consumption nationwide noting that tariff adjustments would be made only after achieving regular and incremental power supply.
Addressing the challenges faced by the power sector, Adelabu acknowledged the sensitivity of tariff adjustments, citing the impact of exchange rates on the cost of gas, a major component of power generation. He emphasized the need for a careful consideration and effective communication before any tariff changes are implemented.
the Minister maintained that his commitment to performance-driven governance is not negotiable. He vowed to dismiss non-performing chief executives in agencies under the power ministry, emphasizing the President’s directive for ministers to ensure efficient delivery or face consequences.
Adelabu also revealed plans to investigate the legality of the five-year license extension granted to privatized power distribution and generation companies. He expressed concerns about the sector’s current state, emphasizing that the licenses of these firms should have expired on October 31, 2023.
The Minister also discussed the possibility of the government reassuming control of power distribution companies and hinted at potential reviews of the territorial coverage of these companies. He emphasized the importance of scrutinizing the extension of licenses and ensuring contractual and legal correctness.
Regarding electricity supply to Niger Republic, Adelabu clarified that the government had not yet resumed the supply. The situation in the neighboring country is being closely monitored before any decisions are made.
Adelabu provided statistics from the National Bureau of Statistics, highlighting customer numbers and revenue generation in the power sector, contending that despite challenges, the government remains committed to addressing issues and ensuring a reliable and affordable power supply for the Nigerian populace.