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By Lizzy Chirkpi
The Minister of Power, Adebayo Adelabu, has urged Nigerians to brace up for increased electricity tariffs as the government moves to eliminate unsustainable subsidies.
Speaking at a meeting with the Chairmen of Nigeria’s Generating Companies (Gencos) in Abuja over the weekend, Adelabu stated that the nation’s economy can no longer bear the burden of electricity subsidies.
“We have to understand that our economy cannot sustain subsidies indefinitely,” he emphasized.
However, the minister assured that the government remains committed to providing targeted subsidies to economically disadvantaged Nigerians.
The Federal Government currently owes Gencos over N4 trillion in outstanding subsidy payments, hindering their operations.
According to the Nigerian Electricity Regulatory Commission’s (NERC) February 2025 performance report, the average real tariff is N116.18 per kilowatt-hour (kWh), while consumers are presently charged N88.2 per kWh. This translates to a subsidy cost of N27.97 per kWh. Only 15 percent of electricity consumers, classified as Band A, do not benefit from these subsidies.
Adelabu’s spokesperson, Bolaji Tunji, relayed that the minister stressed the necessity for citizens to pay the true cost of energy consumed. He reiterated the government’s pledge to support vulnerable Nigerians through targeted assistance.
To address the crippling N4 trillion debt, Adelabu revealed that the government will utilize a combination of cash payments and financial instruments, such as promissory notes. “There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest,” he said.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu concluded.