Amidst widespread skepticism, Minister Adebayo Adelabu claims that the recent tariff hike in Nigeria's power sector is attracting investors. Adelabu asserts that the policy encourages local and foreign investors, despite public outcry.
In response to mounting pressure for the reversal of the Band A tariff hike in Nigeria's power sector, Minister of Power, Adebayo Adelabu, has defended the policy, citing its role in attracting both local and foreign investors.
Speaking at the launch of a mobile substation in Lagos, Adelabu highlighted the increased interest from bankers who had previously shied away due to liquidity concerns. He emphasized that the tariff adjustment had stimulated demand and renewed investor confidence in the sector.
However, he cautioned power distribution companies against implementing the new tariff without ensuring a minimum of 20 hours of electricity supply, underscoring the ministry's commitment to consumer protection. Adelabu reassured that efforts were underway to augment power generation capacity by adding 1,200 megawatts to the current output by September.
The tariff hike, implemented by the Nigerian Electricity Regulatory Commission in April, faced backlash from organized labor, threatening protests if not reversed.
