The Minister of Power, Mr Adebayo Adelabu, has advised Nigerians and electricity consumers in the country to brace up for another hike in tariff because the federal government is not buoyant enough to continue to bear the cost of subsidy on electricity.
Speaking at a meeting with the Chairmen of the Generating Companies of Nigeria (GenCos) in Abuja, Mr Adelabu said consumers will soon begin to pay cost-reflective tariffs.
At the moment, customers on Band B to E enjoyed subsidised electricity tariffs and pay between N68 per kilowatt per hour and 34 per kilowatt per hour (VAT inclusive), while those on Band A, who consume power for at least 20 hours per day, pay about N225 per kilowatt per hour (VAT inclusive).
At the meeting with the GenCos, the Minister hinted that consumers on Band B downward may have to pay more, which could match the Band A tariff.
“We have to understand that our economy cannot sustain subsidies indefinitely,” Mr Adelabu informed the chairmen without giving a specific time when a new rate will be announced.
During the meeting, the chairman of Egbin Power, Mr Kola Adesina, tasked the government to declare a state of emergency in the power sector, noting that the N4 trillion owed GenCos by the federal government remains a critical threat to their operations.
“This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail,” he stressed.
Also, the chairman of Mainstream Energy Solutions, Mr Sani Bello, warned that “without urgent intervention, the entire power ecosystem could collapse.”
In the same vein, the chief executive of the Association of Power Generating Companies (GenCos), Ms Joy Ogaji, said, “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic.”