Clarifying The Sparks: Power Minister Adelabu Denies Advocating Subsidy Removal, Vows To Address Power Sector Challenges

Clarifying The Sparks: Power Minister Adelabu Denies Advocating Subsidy Removal, Vows To Address Power Sector Challenges

Amidst swirling speculations, Chief Adebayo Adelabu, the Minister of Power, has set the record straight, clarifying that he did not call for the removal of subsidies in the power sector…..READ MORE

Instead, he emphasized the need for a well-defined policy to tackle the liquidity challenges gripping the sector.

In a statement released by his Special Adviser, Strategic Communication and Media Relations, Bolaji Tunji, Adelabu’s stance was further illuminated. “What he said was that if the government was subsidizing power, it should be backed up with payment,” Tunji clarified, seeking to dispel any misconceptions about the minister’s position.

The statement revealed that Adelabu recently engaged with top management teams of power Generating companies (GENCOs) and Distribution companies (DISCOs) to address the ongoing blackout issues in certain parts of the country. The discussions also delved into the challenges of indebtedness to GENCOs by the Nigeria Bulk Electricity Trading Company (NBET).

Acknowledging the liquidity challenges within the sector, Adelabu highlighted the necessity for a minimum threshold and expressed a commitment to revalidating debts to determine a fair resolution.

The minister emphasized the imperative for GENCOs to establish contractual arrangements with gas suppliers to ensure a consistent gas supply to generating companies. He assured stakeholders that the government is willing to address concessions and work collaboratively to stabilize the power sector.

To tackle the impasse in gas supply and address liquidity challenges, Adelabu announced the formation of a committee involving all stakeholders. This committee aims to formulate recommendations to resolve issues and ensure a more reliable and consistent power supply for Nigerian citizens.

Adelabu concluded with a pledge to initiate discussions with the Minister of State for Petroleum Resources, emphasizing the importance of prioritizing Gas to Power. He reassured the public of the government’s unwavering commitment to addressing challenges in the power sector, urging patience as collaborative efforts are directed towards a brighter, more reliable energy future for Nigeria.