Tinubu halts electricity tariff increase, advocates for subsidy

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Tinubu halts electricity tariff increase, advocates for subsidy
Tinubu halts electricity tariff increase, advocates for subsidy

President Bola Tinubu has halted the increase in electricity tariffs and advocated for nationwide power subsidies, as disclosed by the Minister of Power, Adebayo Adelabu.

The Federal Government is set to scrutinize the legality of the five-year license extension granted to privatized power distribution and generation firms, with operating licenses that should have expired on October 31, 2023.

Adelabu emphasized that non-performing CEOs in power ministry agencies may face dismissal to ensure optimal performance.

He addressed the call for a cost-reflective tariff, stating that tariff adjustments would occur after extensive communication with the public and guaranteed power supply improvements.

Adelabu expressed concern over Nigeria’s current 4,000 megawatts power generation, citing efforts to enhance capacity.

He highlighted the sensitivity of the power sector, explaining that a cost-reflective tariff would be implemented in due course.

Adelabu stressed the need for sensitization, assured power supply, and political considerations before raising tariffs.

The minister also revealed an ongoing investigation into the legality of the power firms’ license extension and discussed the potential review of territorial coverage for Discos.

Adelabu asserted that privatisation in 2013 was a mistake and hinted at the government possibly taking control of power distribution companies. He emphasized performance-based outcomes for sustainability.

Adelabu denied the commencement of power supply to Niger Republic and mentioned ongoing monitoring of the situation.

The National Bureau of Statistics reported a slight increase in electricity customers in Q2 2022, while revenue generation by DISCOs witnessed a quarter-on-quarter decline.