- Minister Adelabu expresses concerns over Power sector challenges.
- National Independent Power Plants face underutilisation due to gas supply constraints.
Chief Adebayo Adelabu, Minister of Power, expressed concerns about Nigeria’s power sector challenges, citing issues like outstanding subsidy debts. During his power plant visits, including Olorunsogo and Omotosho, he highlighted the underutilisation of National Independent Power Plants due to gas supply constraints.
Adelabu stressed the need for an entire cost-reflective tariff regime if the government cannot settle subsidy debts. He raised concerns about undervalued government-owned generating companies, urging improvements before potential sales.
To address gas supply issues, he proposed a meeting with the Minister of State for Petroleum (Gas) for regular supply to Generation Companies (Gencos). Adelabu called for total subsidy funding or a shift to a cost-reflective tariff to tackle liquidity problems and reduce debts to power companies.
Acknowledging Nigeria’s low electricity tariff compared to West African counterparts, he urged adequate subsidising or paying the accurate power price. Adelabu assured Nigerians of imminent power supply improvements, attributing recent shortages to gas supply issues.
He pledged government efforts to settle outstanding debts and enhance gas supply to Gencos, ultimately improving the nation’s power situation.