Nigerians appear to be facing a choice between complete power blackout or tariff hike. This is the conclusion going by the statement issued by the Minister of Power, Adebayo Adelabu. According to him, Nigeria faces a looming threat of nationwide power cuts within three months if the government doesn’t proceed with the electricity tariff hike. The Minister delivered this warning during a meeting with the Senate Committee on Power.
Adelabu explained that Nigeria’s power sector is in trouble due to a huge debt of N3 trillion. To avoid a blackout, the government needs to raise electricity tariffs. Adelabu said they need N2.8 trillion to subsidize electricity for the rest of the year.
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He also shared that Nigeria needs $10 billion every year for the next ten years to fix the power sector. The minister emphasized that without commercial pricing, investors won’t invest in the sector.
Adelabu disclosed that the government owes about N300 billion for electricity subsidies. He said that distribution companies must provide at least 20 hours of electricity daily, or they will face penalties.
Despite concerns from lawmakers and citizens, the government insists on raising tariffs to stabilize the power sector. The Senate Committee on Power is discussing alternative solutions to address the power sector’s challenges while protecting the welfare of Nigerians.
Source: Daily Trust