Daniel Adaji<\/p>\n
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The Federal Government has recorded a reduction of N4tn in electricity tariff debt, Minister of Power, Chief Adebayo Adelabu, announced on Thursday.<\/p>\n
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During the sixth ministerial press briefing in Abuja, Adelabu disclosed that improved revenue collection and ongoing market reforms had drastically reduced government subsidies and outstanding liabilities.<\/p>\n
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“Industry revenue has increased by 70 per cent, leading to a 35 per cent reduction in the government\u2019s subsidised direct shortfall,\u201d Adelabu stated.<\/p>\n
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\u201cWe envisaged a subsidy of about N3tn for 2024 based on the old values. This has now been reduced to N1.94tn. That is a clear-cut reduction of over N1tn.\u201d<\/p>\n
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He attributed the progress to financial discipline, improved liquidity in the Nigerian Electricity Supply Industry (NESI), and strategic interventions such as the creation of the Nigeria Independent System Operator (NISO).<\/p>\n
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\u201cThis demonstrates that financial viability and service delivery can co-exist harmoniously,\u201d he said.<\/p>\n
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Adelabu explained that the total tariff shortfall in the power sector has now been reduced by N700bn, with Nigeria Electricity Liability Management Company (NELMCO) also settling N7.36bn in post-privatization liabilities owed to Abuja Electricity Distribution Company (AEDC).<\/p>\n
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These efforts are part of a broader drive to clear the over N4tn in cumulative debts choking the sector.<\/p>\n
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The development comes amid heightened public concern over irregular and inflated electricity bills.<\/p>\n
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Advocacy groups have condemned the recent revelation that Lagos State Deputy Governor, Dr Obafemi Hamzat, received an N29m bill for April\u2014an almost 1,000 per cent spike from March\u2019s N2.7m.<\/p>\n
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The Executive Director of the Electricity Consumer Protection Advocacy Centre, Chief Princewill Okorie said, \u201cThis incident could be a positive turning point if it compels the state to investigate how these companies operate. The consumer protection agency is failing. Government oversight is weak. DisCos are breaking the law,l.\u201d<\/p>\n
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In a bid to enhance transparency and operational efficiency, Adelabu highlighted the separation of the Transmission Service Provider (TSP) from NISO.<\/p>\n
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\u201cNow, we are separating the two functions. The provider of infrastructure is separate, and the driver of transmission activity is separate,\u201d the Minister explained.<\/p>\n
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\u201cI believe this marks a new beginning for our transmission activities,\u201d he added.<\/p>\n
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He emphasized that this long-delayed reform, officially launched by the Vice President of Nigeria, Kashim Shettima on April 8 with the approval of President Bola Tinubu, will ensure clear accountability and measurable performance across the transmission value chain.<\/p>\n
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Adelabu said the creation of NISO would bring an end to the confusion that has plagued Nigeria\u2019s power transmission operations.<\/p>\n
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\u201cIf the driver is not driving well, we don’t know whether it is the driver who does not know how to drive, or it is the vehicle that is not good. Now, we will measure the driver separately,\u201d he explained.<\/p>\n
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Meanwhile, power generation companies (GenCos) are sounding the alarm over the mounting debt burden, warning of an imminent nationwide blackout if the Federal Government fails to settle outstanding invoices totalling over N4tn.<\/p>\n
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\u201cThe power generated by GenCos has continued to be consumed in full without corresponding full payment,\u201d said Col. Sani Bello (Rtd.), Chairman of the GenCos\u2019 Board of Trustees.<\/p>\n
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\u201cThis situation has dire consequences for the GenCos and, by extension, the entire power value chain.\u201d<\/p>\n
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Despite the progress reported by the Ministry of Power, experts insist that resolving NESI\u2019s deep-rooted liquidity crisis will require consistent government action and full stakeholder collaboration.<\/p>\n
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Indicating his optimism in the power sector, Adelabu said, \u201cThis is a step forward. Under the new agenda of Mr. President, His Excellency Bola Ahmed Tinubu, we are laying the foundation for a more stable, reliable, and financially sustainable power sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Daniel Adaji The Federal Government has recorded a reduction of N4tn in electricity tariff debt, Minister of Power, Chief Adebayo Adelabu, announced on Thursday. During the sixth ministerial…<\/p>\n","protected":false},"author":1,"featured_media":117538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-117537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n