Key Highlights From Minister Of Power’s Press Briefing In Abuja

Key Highlights From Minister Of Power’s Press Briefing In Abuja

The Minister of Power, Adebayo Adelabu, recently provided insights into his ministry’s activities and the plans of the President Bola Ahmed Tinubu-led administration to enhance power supply in Nigeria during a press briefing in Abuja. Here are the major highlights from the briefing:……READ ALSO Key Highlights Of President Bola Tinubu’s Meeting With State Governors Today At The State House 

1. Electricity Tariff Adjustment:
   • Prior to the tariff adjustment, the government subsidized 67% of electricity costs.
   • Estimated subsidy cost for 2024 reduced significantly from approximately 2.9 trillion Naira to around 1.4 trillion Naira after the adjustment, marking a reduction of over 50%.
   • Band A feeders reduced to 481 out of over 1,000.
   • Only 15% of total customers categorized as Band A will no longer receive subsidies.
   • Transition towards cost-reflective pricing in three years.
2. Metering and Customer Base:
   • Approximately 12 million electricity customers in Nigeria.
   • Only slightly over 5 million customers are currently metered, leaving a gap of over 6 million.
3. Infrastructure Challenges and Regulatory Measures:
   • Significant infrastructure challenges exist, including obsolete equipment and vandalism.
   • DisCos failing to provide 20 hours of supply to Band A consumers will face sanctions.
   • DisCos incentivized to migrate other bands to Band A for higher tariffs.
4. Energy Management and Future Plans:
   • Pricing adjustment aims to address liquidity issues and facilitate sector investments.
   • Testing the concept of full payment for 20-24 hours of daily supply.
   • Ongoing efforts include regulatory decentralization, renewable energy investments, and infrastructure improvements.

The Minister urged Nigerians to be patient, assuring them that the reforms in the power sector would yield visible and sustainable results.