Posted by Adebayo Adelabu, the minister of power, has stated that the nation can no longer afford to subsidize electricity.
The minister stated that Nigeria has to start moving toward a tariff model that is more economically viable. The nation is currently 1.3 trillion naira in debt to generating businesses (GenCos) and 1.3 billion dollars in debt to gas firms.
Adelabu made this announcement on Wednesday during a news conference in Abuja. He also revealed that this year’s subsidy budget was only 450 billion naira.
The ministry, he claimed, requires more than two trillion naira to implement subsidies.
According to the minister, states will now be able to produce electricity on their own.