Tag: Adebayo Adelabu

  • Why Nigeria is not able to generate enough electricity – Minister

    Why Nigeria is not able to generate enough electricity – Minister

    The Minister of Power, Mr Adebayo Adelabu has again attributed the inability of Nigeria to generate enough electricity to low or shortage in gas supply.

    TheNewsGuru.com (TNG) reports Adelabu said this in Abuja on Monday while meeting with the Heads of Power Agencies and other stakeholders in the industry.

    The Minister disclosed federal government plans to increase electricity megawatts from 4000 to 6000 within the next three to six months to improve power supply.

    Adelabu said that he had visited a number of generation companies and confirmed that they had the installed capacity to generate the 6000 megawatts.

    According to him, a large percentage of the installed capacity is operational, but they are not available because of low or shortage in gas supply.

    “4000 megawatts is not acceptable and we have plans to increase the megawatts to a minimum of 6000 to 6500 within the next three to six months.

    ”What we are looking at is to have an agreement to ramp up to a minimum of 6000 megawatts within the next three to six months.

    ”I know that the highest we ever generated was 5,700 megawatts about three years ago, that was specifically in Nov. 2021.

    ”And these 5700 megawatts were also distributed. If we could achieve 5,700 at that time, I believe we still have infrastructure to generate between 6,000 and 6,500.

    ”Once there is gas supply, we want to ramp up generation to minimum 6,000 megawatts,” Adelabu said.

    The minister said that he received information about a couple of improvements in the sector but that is not still acceptable until there is a quantum leap in terms of stable electricity supply.

    “We need to do what we need to do to get the power sector to the desired level. Nigerians deserve the right to ask for good governance from people that are elected to power.

    “They deserve the right to ask for improvement in service. People cannot be paying for darkness. What they should be paying for is light. And there should be consistent improvement in supply on a daily basis.

    “So, I also want to use the opportunity to reassure Nigerians that what we are experiencing is temporary. We are addressing the root cause of all these issues.

    The minister said that the ministry of power and the agencies under it are working day and night to ensure that the situation is reversed within a very short time.

    He said the ministry and its agencies would not relent until stable power is achieved adding that the meeting was called to address the issues in the power sector.

    Adelabu said that the administration of President Bola Tinubu is committed to addressing the root cause of the issues and address them so that there can be consistent electricity supply to consumers.

    “This is the only way, we can guarantee good life for our people and increase industrialisation, employment, economic growth, and industrial development.

    “It is true that the Electricity Distribution Companies are in the hands of private sectors. We do not have direct control but we need to compel them to perform.

    “They must perform. If they do not perform, all our efforts in generation, transmission is zero. I had a meeting with the Chairman of Nigeria Electricity Regulatory Commission (NERC) on how to address DisCos performance,’’ he said.

    Adelabu recommends capital punishment for vandals of power infrastructure

    Reacting to the frequent vandalism of power infrastructure, the Minister of Power, recommended capital punishment for vandals and theft of power infrastructure.

    Adelabu said the issue of power infrastructure vandalisation and theft was one of the pains the sector is going through.

    ”The ministry of power and agencies under it is pushing capital punishment for those involved in vandalisation and power thefts of all forms.

    ”Capital punishment is not too much because they are gradually killing the nation. They are killing the economy. They are killing the people.

    “Vandals are getting too many comfort all over; transmission and distribution power assets.

    “This is not only frustrating our efforts to achieve uninterrupted power supply, it is driving the nation backward,” he said.

    Adelabu said that Nigerians must realise that these assets belong to them, so they must jealousy protect them, adding that it was the taxpayers’ money that was used to acquire them.

    He said the ministry of power was collaborating with the office of the National Security Adviser and security agencies to protect them as it cost a lot of money to replace them when damaged.

    The minister said that the ministry was also collaborating with states to have their protection framework to protect the infrastructure.

    According to him, the Federal Government is also tryimg  to provide at least two million meters on a yearly basis.

    “So that in four to five years, the huge meter gap will disappear or significantly reduce..

    He said that there was already a presidential metering initiative that was working on the  metering gap.

    ”We already have a seed fund of N75 billion to start working. And we are also going to have some debt injection from the Nigerian Sovereign Investments Authority to complement the fund.

    ”There is even a possibility of increasing the fund to a ₦100 billion. We have a planned intervention to reduce the meter gap. But the Electricity Distribution Companies (DisCos) must also sit up.

    ”We need to interrogate their metering plans and give them the minimum target they must achieve in a year,” he said.

    The minister said that as the meter gap wass being  reduced, there  were new connections as new  communities were connected to the grd so we need to be aggressive on this.

  • Why residents of Abuja, Benin, PH, Ibadan are suffering from epileptic power supply

    Why residents of Abuja, Benin, PH, Ibadan are suffering from epileptic power supply

    Nigeria’s Minister of Power, Adebayo Adelabu has given insights as to why residents of Abuja, Benin, Port Harcourt, and Ibadan are currently suffering from epileptic power supply.

    As a result, the Minister has summoned the Chief Executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC) to an emergency meeting.

    TheNewsGuru.com (TNG) reports Adelabu as saying efforts had been made to improve electricity supply in the aforementioned cities but that it is disheartening that power supply continue to deteriorate.

    The Minister of Power disclosed that his ministry has been exerting pressure on the Generating Companies (GENCOs) to enhance their performance, resulting in a recent increase in generation to over 4000MW.

    He said despite the progress made, certain distribution companies are failing to adequately distribute the power supplied by TCN, while acknowledging that vandalism of power infrastructure exacerbates the problem in the regions.

    While urging electricity consumers to remain patient with the present epileptic power supply, Adelabu said plans are underway to settle outstanding debts owed to power generation and gas supply companies.

    In a statement released via his official Facebook page, Adelabu wrote:

    “As the Minister of Power, I am deeply concerned about the deteriorating electricity supply across the country.

    “In response to this pressing issue, I have summoned the Chief Executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC), as well as the Managing Director of the Transmission Company of Nigeria (TCN), to a crucial meeting.

    “The purpose of this meeting is to discuss the worsening power supply in their respective regions and to collectively find lasting solutions.

    “It is disheartening to witness the decline in power supply despite the concerted efforts to improve the situation.

    “The Ministry has been exerting pressure on the Generating Companies (GENCOs) to enhance their performance, resulting in a recent increase in generation to over 4000MW.

    “Despite this progress, certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.

    “Moving forward, I am committed to holding all distribution companies accountable for their performance. Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.

    “Additionally, I have instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions.

    “During recent supervisory visits to power generating plants, I have witnessed firsthand the challenges faced by the sector.

    “Plans are underway to settle outstanding debts owed to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide.

    “I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians”.

  • Power: FG to settle N3 trillion inherited debt

    Power: FG to settle N3 trillion inherited debt

    The Minister of Power, Mr Adebayo Adelabu, says the Federal Government is committed to settling more than three trillion Naira debt it inherited in the power sector.

    Adelabu said this in Abuja on Wednesday when he briefed newsmen.

    “Today, we owe the Power Generating Companies (GenCos) a total of N1.3 trillion, out of which 60 per-cent of it is being owed to gas suppliers.

    ”We have a legacy debt of 1.3 billion dollars prior to 2014 to gas suppliers companies at today’s rate that is close to two trillion Naira.

    “If you add the two trillion Naira legacy debt to N1.3 trillion owed the GenCos, we have an inherited debt of more than three trillion naira in the power sector.

    “How will the sector move forward? Nigerians deserve the right to know and we are working underground to resolve these issues,” he said.

    According to him,  the Federal Government plans to settle the existing sectoral outstanding debt obligations to the gas supply and power generation companies, using partly cash payment and guaranteed debt instruments.

    Adelabu said that the Ministry of Power was liaising with the Ministry of Finance, Budget and Economic Planning, and office of the Special Adviser on Energy to the president to settle the outstanding debt.

    “We are also working  with the Minister of State for Petroleum Resources (Gas), to have a working arrangement for firm gas supply contracts for the Gencos.

    ”And possibly agree on gas to power domestic supply pricing in local currency to reduce price fluctuations,” he said.

    According to the Minister, said the issues with the electricity supply value chain are multiple simple technical operational problems across all segments in the value chain.

    According to him,  these issues are made complicated by lack of sustaining liquidity and infrastructure funding as well as structural misalignment.

    He listed the simple technical issues to include inadequate shortage of gas supplies and aging dilapidated generation machineries.

    “Causing below optimal capacity utilisation leading to short supply by the GenCos,” he said.

    Others he said include inadequate power evacuation capacity at Genco locations, coupled with unstable and fragile transmission lines devoid of automated frequency controls.

    ”Lacking in fail-over or back-up capacity with frequent human disturbances through vandalism and theft.

    ”Aging weak distribution infrastructure (lines and transformer) coupled with huge meter gap causing unbearably large technical and collection losses.

    “These are issues that look so simple on the surface and should ordinarily require little efforts to fix over time, ”he said.

    The minister said that it had been difficult to get these problems fixed over the years due to the complications wrapping the entire value chain end to end.

    Adelabu said that the road map to stabilising the sector in preparation for turn around and transformation was the

    settlement of existing sectoral outstanding debt.

    He said that there was also the need for

    a national discourse on the nation’s perspective to electricity supply, commercial product or social service.

    “There must be an agreement across divides on how we define electricity.

    “Depending on the outcome of the above, either implementation  of a cost reflective tariff or a cashed backed Federal Government guaranteed subsidy funding regime to inject liquidity into the sector.

    ”Increased investments across the value chain for infrastructure improvements, capacity expansion and transmission automation.”

    The minister said that diversification of power generation to absorb renewables and facilitate the nation’s journey to energy transition target was key.

    He said that the roadmap would encourage distributed power strategy in conjunction with sub- national government focussing on embedded power model.

    This he said would  reduce pressure on the national grid, and  ensure alternative electricity supply to Electricity Distribution Companies (DisCos).

    The minister said that the development of a rural electrification plan from a bottom up and a top down approach to identify the unserved and the underserved rural and sub urban communities was required.

    According to him, this will enable the government to direct targeted subsidy through rural electrification agencies at a national and sub national leve.

    ”Using renewables (small hydro, solar micro grid, solar home systems and wind technology.

    ”Develop and expand capacity for sectoral regulation, technical inspection and sectoral expertise.

    Adelabu also said that there were ongoing activities in the ministry of power and its agencies to improve power supply.

    He said that these activities include the

    augmentation of the hydro plants: operational capacity. and thermal power

    ”The recent completion of the 700 Megawatts (MW)0 Zungeru Hydro Electricity Power Plant in Niger State.

    ”Financing the required infrastructure to enable complete evacuation of the 40MW Kashimbila Hydro Power Plant in Taraba using Promissory Note facility at the Debt Management Office (DMO).

    ”Resuscitation of abandoned 26 small and medium size hydro plants across the country with solar hybridization.

    “This will adopt embedded power model with connectivity to the regional Discos distribution network.

    Others he said are completion of the 20 MW Wind/Solar hybrid power plant in Katsina.

    “Completion of infrastructure require for complete evaluation of the 30 million Gurara Dam Power Plant.

    “Re-visitation of the abandoned 15 IPP Solar plants in the Northern part of the country, and developing an IPP solar auction with the support of the World Bank,” he said.

  • JUST IN: We can’t continue to subsidise Electricity — FG

    JUST IN: We can’t continue to subsidise Electricity — FG

    The Minister of Power, Adebayo Adelabu, has said the the Federal Government cannot continue to subsidise electricity

    Adelabu in a press conference in Abuja on Wednesday, said the country must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies

    According to him, only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.

    On the grid that has collapsed for about six times between December 2023 and now, he said this was caused by shortage of gas, ageing machines in the grid value chain, low capacity to evacuate generated power, and destruction of power stations in some parts of the North-East geopolitical zone of the country.

    He said that the Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the forex, hence the company will not award any new contracts till all such projects are completed.

    The minister also said over 50 billion naira has been earmarked in the 2024 budget to build mini grids to supply power to remote areas.

    He stressed that electricity distribution companies (DisCos) should sit up otherwise anyone found wanting will have his licence withdrawn.

    The minister also said he has reached out to the National Security Adviser, Nuhu Ribadu to help provide security for power infrastructure.

  • Real reasons there is no enough gas to generate electricity in Nigeria

    Real reasons there is no enough gas to generate electricity in Nigeria

    Three reasons have been identified for the low supply of gas to thermal power plants nationwide with which to generate electricity in Nigeria.

    TheNewsGuru.com (TNG) reports the reasons were identified at a meeting between the Ministry of Petroleum Resources (Gas) and the Ministry of Power.

    In a statement on Thursday by Mr Chris Ugwuegbulam, Assistant Director, Press and Public Relations of the Ministry of Petroleum Resources (Gas), the three reasons were identified as decade of gas legacy debts, vandalisation of gas resources infrastructure in the Niger Delta Region and domestic pricing of gas in dollars.

    At the end of the meeting, an inter-ministerial committee to suggest ways of achieving a sustainable gas supply to gas generating plants in the country was constituted.

    The inter-ministerial committee was in Abuja by the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo and the Minister of Power, Chief Adebayo Adelabu.

    “The committee will suggest means of achieving a steady gas supply  to meet domestic and industrial needs of Nigerians in line with the Renewed Hope Agenda of President Bola Tinubu’s administration,” Ekpo said.

    He  expressed willingness to work harmoniously with any individual, organisation and agency to solve these challenges.

    Meanwhile, on his part, Adelabu stated the need for the two ministries to work collaboratively to solve the problem of low gas supply to Thermal Power Plants across the country.

    This, Adelabu said, would achieve an uninterrupted power supply in the country, adding that nothing could be done in Nigeria without stable power.

    Members of the  committee were drawn from the Ministries of Petroleum Resources and Power, Regulatory Agencies, Operators and Critical Stakeholders in the Gas and Power Sectors.

    The meeting was witnessed by some directors in the Ministries of Petroleum Resources and Power.

  • Gas not enough to generate electricity in Nigeria – Power Minister

    Gas not enough to generate electricity in Nigeria – Power Minister

    Minister of Power, Adebayo Adelabu has disclosed that low supply of gas to electricity generating companies (GenCos) is adversely affecting supply in the country.

    TheNewsGuru.com reports Adelabu made the disclosure in a statement posted on his official X account after a meeting with GenCos and electricity distribution companies on Friday in Abuja.

    The Minister stressed resolving the issue of gas supply was top priority in the agenda of the ministry of power, adding that the federal government will set up a committee to resolve the issue.

    “I have decided to form a committee involving all stakeholders. Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens.

    “Yesterday, I had crucial discussions with power Generating Companies (GenCos) and Distribution Companies (DisCos) to address the ongoing issue of blackouts in parts of our country.

    “Power supply during the yuletide improved, but unfortunately we have experienced setbacks in the New Year. After investigations, it is clear that the main cause of poor power supply is the low supply of gas to GenCos.

    “I visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State to understand the challenges firsthand,“ he said.

    Adelabu said that a plan had also been established to initiate discussions with the Minister of State for Petroleum Resources, regarding collaboration and to emphasise the importance of prioritising gas to power.

    He said that during the meeting indebtedness to GenCos by Nigeria Bulk Electricity Trading Company (NBET) was also addressed.

    “While acknowledging the sector’s liquidity challenge, we are working on validating the debt and determining a fair resolution.

    “I emphasised the importance of GenCos establishing contractual arrangements with gas suppliers to ensure a steady gas supply.

    “Recognising concessions may be needed, I assure you that we are committed to working on this to stabilise the power sector. To tackle the gas supply and liquidity challenges, ‘’he said.

    Adelabu said that the commitment of the ministry of power in addressing challenges affecting power supply was unwavering.

    “We understand the impact on citizens and our goal is to swiftly resolve the issues of gas supply, indebtedness, and overall sector stability.

    “Your patience is appreciated as we work, collaboratively towards a brighter, more reliable energy future for Nigeria, ‘’he said.

  • FG set to provide electricity to unserved, underserved communities

    FG set to provide electricity to unserved, underserved communities

    Minister of Power, Adebayo Adelabu, has vowed that the  Federal Government will provide electricity to unserved and underserved communities in Nigeria.

    The Minister said this on Monday during the project inspection and impact assessment of 90KW solar hybrid mini grid at Adafila, Ogbomoso, as part of his working tour on power facilities in Nigeria.

    Adelabu said that the project has capacity to power over 1,300 households, including clinic, schools and mini businesses in the community.

    “The solar mini grid system uses solar panels embedded in the community, distributing power to the entire community without passing through the national grid.

    “The project gives the community 24 hours of uninterrupted power supply. It is backed up by 240KW battery storage during the night when there’s no sun.

    “This community has been enjoying uninterrupted power supply in the past two years, what we are here to do is to witness, inspect and assess the impact of the project on the community.

    “We have about 27 mini grid solar system spread across the state and other locations in Nigeria,” he said.

    The Minister noted that the solar hybrid mini grid project had taken people out of energy poverty that they have been suffering from for long.

    “With this project, people are able to improve their businesses because availability of electricity empowers people to conveniently utilise the skills they have learnt and smoothly run their businesses.

    “We are going to do more of this project nationwide so as to bring renewed hope agenda of President Bola Tinubu and dividends of democracy to the people at the grassroots.

    The Minister had earlier inspected the 132KV substations in Oyo and Ogbomoso.

    The Soun of Ogbomoso, Oba Afolabi Olaoye, receiving minister in his palace, urged the ministry to expedite work on installation of transmission lines on newly-installed 132KV substation in Ogbomoso to improve power supply to the ancient city.

    The traditional ruler reiterated the commitment of Ogbomoso indigenes in ensuring adequate protection of power infrastructures and other government facilities in the town.

  • Why we want to end estimated ‘NEPA’ bill – Power Minister

    Why we want to end estimated ‘NEPA’ bill – Power Minister

    Minister of Power, Adebayo Adelabu, on Monday restated the Federal Government’s commitment to end the estimated billing system in the nation’s power sector.

    The Minister said this at a meeting with the management of Ibadan Electricity Distribution Company (IBEDC) as part of his working tour on power facilities in Nigeria.

    Adelabu said that the purpose of the meeting was to seek more collaboration with relevant stakeholders to see how the power sector could be moved forward.

    According to him, it also aims at addressing complaints from electricity consumers.

    “IBEDC remains largest in terms of coverage among the distribution companies which brings a lot of responsibilities and consumers’ expectations on the company.’’

    The Minister said that the metering gap remained wide in Nigeria, noting that about 50 per cent of the customers within the coverage area were yet to be metered.

    “Citizens are tired of estimated billing because estimated billing always lead to cheating between consumers, staffs and company.

    “Before the end of this year, we are looking at the possibility of ending estimated billing because we want transparency and objectivity in our billing system,’’ he said.

    He added that President Bola Tinubu has just established a presidential metering initiative to harmonise all metering acquisition in the country.

    “We have up to eight million meters gap in Nigeria and what the initiative seeks to achieve is to close this gap with three to five years.

    “This means that an average of two millions meters is required on yearly basis and achieving the target is compulsory for citizens to enjoy stable power supply,’’ minister said.

    According to him, the situation whereby communities will contribute money to acquire transformers, cables and other electrical equipment must stop.

    The min6ister said that Nigerians should expect electricity tariff review in a way that would not add to the burden of the citizens, adding that adequate sensitisation and public enlightenment must be carried out before such review.

    He said that the review would be progressive with minimal or no impact on low income earners and people in areas with short supply duration.

    “Another condition is that we must improve electricity supply so as to encourage people to pay before we can talk about tariff adjustments.

    “We must also ensure that the tariff review is better when compared with alternative energy sources, “he said.

    Also speaking, the Managing Director, IBEDC, Kingsley Achife, who said the present electricity tariff is not cost reflective, said that the situation needs prompt attention to improve quality of service to the people.

    Achife said that IBEDC had open a transformer repair workshop in Ibadan to ensure that transformers were being repaired and restore back to operations within short period of time

    He said that the company would soon take delivery of 300 transformers to increase its service capabilities in its area of coverage.

    He urged the ministry to harnessing huge investment opportunities along Ibadan-Lagos expressway axis due to presence of many organisations along the axis.

    “Travelling along Ibadan to Lagos, the whole area is filled with investment opportunities. Unfortunately, we are not able to serve that place for several reasons, including wires, infrastructures, and other required assets,” he said.

  • Electricity: What we generate in Nigeria is shameful – Minister of Power

    Electricity: What we generate in Nigeria is shameful – Minister of Power

    The Minister of Power, Adebayo Adelabu has described as shameful the fact that Nigeria’s electricity transmission and distribution capacity has remained stagnated at about 4000MW for several years.

    Adelabu, who spoke during a parley with power correspondents in Abuja on Wednesday, stressed that the situation was not acceptable.

    Adelabu stressed that no nation can grow its economy, industries or any sector without a reliable power sector, noting that countries that had grown significantly were those who identified electricity as the engine or driver of growth.

    “For example, South Korea, with a 49 million population, generates and distributes 130,000 megawatts of power. So companies like Daewoo, Hyundai, LG and others are now giants of industry, having grown from one-shop companies that they were in the 1960s.

    “Secondly, China with a 1.4 billion population generates and distributes 1.3 million megawatts of electricity.

    “So when we say we are over 200 million people and what we generate and distribute on our national grid is just 4,000 megawatts, it is shameful; it is not acceptable. We must achieve better results,” the minister ordered.

    FG to focus on alternate source of generation to improve  power – Adelabu

    The Minister of Power, meanwhile disclosed that the Federal Government plans to focus on an alternate  source of generation to improve to power supply.

    Speaking in Abuja on Wednesday while interacting with power correspondents, Adelabu said that the plan was to de-emphasise  the national grid  and focus on distributed power.

    According to him, power can be generated and get  down to the consumers without passing through the national grid, adding  that the best way to do this is to look at alternate source of generation,

    “We want to use small hydros, we have small dams that can generate between 500kilowatts down to five megawatts.

    “So, we want to focus on that  to generate power to identified locations embedded in the distribution network without passing through the transmission network because the capacity and stability of our transmission is still constrained, ‘’ he said.

    The minister said that government was also looking at solar energy as there were a lot of investors that have given the country offers to invest in it.

    Adelabu said that a lot of them were asking the government to give them Power Purchase Agreement (PPA) and evacuate it to the grid.

    “No, it won’t happen now.  Whoever wants to invest in solar power must identify who the off takers are; our focus should be on off grid power generation.

    “We have proposals for offshore wind power in Nigeria, we have potential for this because we are a coastal country. We can have wind fans that we give us very clean power.

    “That is what we want to do, why we concentrate on continuously improving the grid and expanding its capacity. We don’t want to wait we want to generate power and distribute to our people,” he said.

    Adelabu said he has also ordered an investigation into the extension of the licences of Electricity Distribution Companies, otherwise known as DisCos by five years.

    ”When I came in, the licences I saw were for 10 years, 2013 to 2023. But along the line, I spoke to the NERC Chairman they said they have extended the licences for another five years,”he said.

    According to Adelabu, the problem in the power sector was multi –dimensional and cut across the value-chain from generation to transmission to distribution.

    He said that only one person cannot solve the problem of the sector, adding that all the stakeholders must be carried along to achieve the desired result.

    “We are going to make an impact by turning the industry around and deliver improved power to the doorstep of households, businesses and industries, ” Adelabu said.

    The minister said that desired results were not achieved in the sector because it  has always been top to down approach, saying, ” that is from  generation to transmission to distribution.”

    Adelabu said that efforts had always been on establishing more power plants and getting power generated without so much emphasis on delivering channels.

    “If our focus is on distribution, infrastructure improvement and a little of transmission and with the volume of power we generate,  we are going to double the delivery to the doorstep of consumers.

    “ So, what we want to adopt is a bottom up approach which is delivery focus, the little we generate, we are we able to get it to consumers. so we are starting from the customer end,”he said.

    He also announced that Nigeria’s second-largest hydroelectric power station, the 700 megawatts capacity Zungeru Power Plant, was ready to begin operations before the end of November.

    The power minister also disclosed that plans had been concluded to organise a Power Sector Retreat between December 12 and 14, 2023, which shall produce a workable roadmap for the sector.

  • Tinubu gives condition for hike in electricity tariff

    Tinubu gives condition for hike in electricity tariff

    President Bola Tinubu has said until Nigeria is able to achieve regular and incremental power supply, electricity tariff cannot be hiked in the country.

    TheNewsGuru.com (TNG) reports the Minister of Power, Adebayo Adelabu quoted President Tinubu to have said this.

    During a parley with power correspondents in Abuja on Wednesday, Adelabu said Tinubu stopped the implementation of a hike in electricity tariff months back and insisted that subsidy be paid on power consumed nationwide.

    The Minister of Power was speaking on the call for a cost reflective tariff when he made the disclosure.

    Adelabu stressed a cost reflective tariff would lead to a hike in the amount payable for power.

    He, however, noted that the non-implementation of this was actually causing liquidity crisis in the sector, but stressed that the President had refused to allow a raise in electricity rate.

    “The power sector is an industry that is very sensitive to any leader. You cannot jump overnight and implement the cost reflective tariff.

    “I can tell you that till today the government still subsidises power. Tariff should have been raised months back, but Mr President said until we are able to achieve regular and incremental power supply we can’t touch the tariff.

    “Now, I never said that it is not yet time to charge cost reflective tariff. Rather, I said cost reflective tariff is supposed to have been implemented months ago because it is the source of liquidity to the system.

    “But for political reasons and empathy, you cannot cause additional burden on Nigerians. We just had the removal of fuel subsidy, we are talking about exchange rate skyrocketing, galloping inflation and so many others that bring hardship to the people.

    “And Mr President is trying to relieve this hardship through various forms of palliatives. So it is not politically expedient and reasonable to now implement a tariff that is more like dumping the existing tariff.

    “We are now paying about N70 (per kilowatt-hour), and it can never be less than N130 or N140 at the exchange rate of today if we are to implement a cost reflective tariff. Because part of the reasons for an increased tariff is the price of gas, which is paid in dollars,”

    “So the there is a gap between the cost reflective tariff that we are supposed to charge and the allowed tariff. That huge gap the government is still handling it as subsidy. This affects liquidity in the system, investments and causes so many constraints,” Adelabu said.