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Olugbemi. Adeyinka Ogunleye
1 month ago
Overview
FG plans to implement cost-reflective tariff for power sector — Adelabu.
The federal government says it is actively developing a plan to shift the power sector to a fully cost-reflective regime. Adebayo Adelabu, minister of power, spoke on Tuesday at the Mission 300 stakeholders engagement meeting in Abuja, according to a statement by Bolaji Tunji, the minister’s media aide. The commitment, he said, is vital to the nation’s economic growth and development.
In its recent 2025 first quarter (Q1) report, the Nigerian Electricity Regulatory Commission (NERC) said the country incurred an electricity subsidy debt of N536.4 billion in the quarter, citing the lack of cost-reflective tariffs across all electricity distribution companies (DisCos). The minister said the government will introduce targeted subsidies to mitigate the impact on vulnerable citizens.
Adesina added that “currently, there’s a huge outstanding debt to the power generation companies in the form of unpaid government subsidies, which stands at about N4 trillion as of December 2024”. “The federal government is already working out modalities to defray this obligation and to ensure that further obligations are not accrued going forward, the government is working on a plan to transition the sector to a fully cost-reflective regime while implementing targeted subsidies for the economically vulnerable citizens in the country,” he said.
“Improving our power generation through recovery of idle capacities and expanding energy mix to ensure energy security, and to dilute the power pool with cheaper and cleaner energy sources.”
