Power Minister Urges Bold Move: Why Tinubu’s Government Should Scrap Electricity Subsidies

Power Minister Urges Bold Move: Why Tinubu’s Government Should Scrap Electricity Subsidies

In a bold proposition, Power Minister Adebayo Adelabu advocates for the removal of electricity subsidies under President Bola Tinubu’s administration, citing the need for effective energy utilization in the country…..CONTINUE READING

Expressing concerns over the dismal state of electricity supply, Adelabu highlights various issues, including outstanding subsidy debts, as contributors to the problem. He asserts that Nigeria should transition to a full cost-reflective tariff regime if the government cannot settle subsidies owed to marketers.

Adelabu made these assertions during his visit to the 750 megawatts Olorunsogo Power Generating Plant in Ogun State and the 500 megawatts Omotosho Generating Plant in Ondo State as part of his nationwide inspection of federal government power installations.

The minister also sheds light on the challenges faced by National Independent Power Plants (NIPPs) managed by the Niger Delta Power Holding Company Plc (NDPHC), citing under-capacity utilization of below 25% due to gas supply constraints.

Impressed by the size, technology, and operational history of the power plants, Adelabu expresses his amazement at their underutilization, operating below 25% capacity. He emphasizes that the shortage in gas supply is a significant factor contributing to this under-capacity utilization.

In his quest to address the challenges faced by these power installations, Adelabu poses the question, “What can we do to support these power plants to operate at impressive capacity, so that power supply will improve nationwide?” The call for the removal of electricity subsidies becomes a focal point in the minister’s push for a more robust and efficient power generation and distribution system in the country.