Nigeria’s Power Minister, Adebayo Adelabu, has called for Nigerians to prepare for higher electricity tariffs, warning the economy can no longer sustain subsidies. The government plans to address a ₦4 trillion debt in the sector.
- Minister Adelabu urges Nigerians to accept cost-reflective electricity tariffs.
- ₦4 trillion debt threatens the survival of the power sector; a resolution plan is underway.
- Targeted subsidies will remain for vulnerable citizens, but blanket subsidies are ending.
- GenCos' financial struggles include unreliable gas supply, forex instability, and chronic payment defaults.
- Promissory notes will be used to settle the power sector’s debts over the next six months.
The call for higher tariffs signals a significant shift in Nigeria’s energy policy, with potential hardships for many. Though targeted subsidies will protect vulnerable groups, the shift could hit everyday consumers hard. Meanwhile, the N4 trillion debt threatens Nigeria’s power infrastructure, potentially worsening electricity shortages. Adelabu’s reform promises aim to balance the sector’s survival with broader economic realities.
As the cost of energy rises, Nigerians may be facing a difficult adjustment. Will these reforms fix Nigeria’s power crisis, or will they lead to more unrest? Let’s discuss.
