Minister of Power, Chief Adebayo Adelabu has explained why efficient electricity supply has continued to elude Nigerians, saying that the power sector needs complete overhaul to ensure regular service delivery of electricity supply.
He spoke at a press conference Friday against the backdrop of the recent hike in electricity tariff from N68 to N225 per KW/hr for customers in Band A by the Nigerian Electricity Regulatory Commission (NERC) on Wednesday.
The Minister pointed out that Nigeria is in a subsidy regime where the government covers 67 percent of the cost of power production, transmission, and distribution, which consumes more than 10 percent of the National budget.
According to Adelabu, “This is a burden on the country’s meagre revenue”, said a statement by the Special Adviser, Strategic Communication and Media Relations to Minister of Power, Bolaji Tunji.
He further said that the power sector needs an overhaul, and the present administration has taken the bold step to start the journey.
Speaking on the recent tariff increase, the Minister said the increase is only for consumers in the Band A category, which is only 15 percent of consumers, while other customers will continue to enjoy the government subsidy.
The Minister said the ministry intends to provide a cost-reflective tariff and gradually migrate other consumers to the band A grade over three years.
These consumers will enjoy 20 to 24 hours of electricity per day, and that, realistically, it is cheaper at N225 per kilowatt than diesel and generating sets.
Chief Adelabu said the sector currently needs to be more attractive to investors, noting that “There is an infrastructure deficit, which includes the availability of gas and the generation, transmission, and distribution of power. These must be addressed for the sector to grow and benefit Nigerians”.
He pleaded for patience and understanding in addressing the root cause of the problems of the Power Sector to provide consumers with the desired service.
