NewStats: 3,265,014 , 8,185,335 topics. Date: Friday, 13 June 2025 at 07:21 AM 5f1z58

Brace for cost-reflective tariffs, minister tells Nigerians

The nation’s economy can no longer sustain electricity subsidies, Minister of Power Adebayo Adelabu has said.

He told Nigerians to brace for cost-reflective tariffs.

‘’We have to understand that our economy cannot sustain subsidies indefinitely,” Adelabu pointed out at a meeting with the Chairmen of Generating Companies of Nigeria (GenCos) in Abuja.

He, however, reaffirmed government’s interest in providing targeted subsidies for economically disadvantaged Nigerians.’’

He did not explain the category of Nigerians in the ‘’economically disadvantaged’’ category.

The Federal Government currently owes Generating Companies (Gencos) over N4 trillion in backlog subsidy payment.

In its February DisCos Performance report, the Nigerian Electricity Regulatory Commission (NERC) said the average actual tariff is N116.18kwh while consumers pay N88.2kwh.

The difference between the actual tariff and average collection, which is N27.97 kWh, was the cost of subsidy per kilowatt hour in February.

All NESI customers, except 15 per cent, which constitutes Band A, enjoy subsidy.

Adelabu’s spokesman Mr. Bolaji Tunji quoted the minister as telling the GenCos: Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians.”

Adelabu also said the Federal Government was determined to offset a substantial part of the N4 trillion debt crippling power generation in the country through cash and financial instruments such as promissory notes.

He said this would be proposed at a meeting being planned between President Bola Ahmed Tinubu and GenCos’ leadership.

He said: “There is a need to pay a substantial amount of the debt in cash. At the minimum, let us pay a substantial amount, then ask for a debt instrument in promissory notes to pay the rest.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis.”

Chairman of Mainstream Energy Solutions, Col. Sani Bello (retd.), who led his colleagues to the meeting had earlier sounded the alarm over the sector’s challenges, citing the N4 trillion debt as a critical threat to their operations.

Bello warned that liquidity challenges had left the GenCos unable to secure loans or maintain infrastructure.

He added that “without urgent intervention, the entire power ecosystem could collapse.”

Kola Adesina, chairman of Egbin Power and First Independent Power Limited, spoke in the same vein as Bello.

He said: “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Association of Power Generating Companies (GenCos) Chief Executive Officer (CEO), Dr. Joy Ogaji, listed challenges undermining GenCos as including chronic payment defaults, erratic gas supply and foreign exchange volatility.

Ogaji noted that naira’s plunge from N157/$1 in 2013 to N1,600/$1 now had made nonsense of maintenance budgets and loan repayments.

“GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she said.

https://thenationonlineng.net/brace-for-cost-reflective-tariffs-minister-tells-nigerians/

Money you are using to subsidize why not provide free cheap prepaid meters ... They are just cheating you guys , it's not that they are supplying light eveeywhere just were they know big men are .

I don't know where the National Electricity Regulatory Commission got their figure of 116.18 kilowatts per hour.My bill for the same month is 180.77kw per hour.This means the government don't have accurate figure.

We are still campaigning With Electricity in 2025.
Meanwhile, Tinubu the Developer promised Nigerians If constant Power supply at a lower tariff
The fraudster boasted If he didn't achieve it, Nigerians should not Vote him in 2027

This people are just completely irresponsible, after all the ridiculous hike the minister still has the effrontery to claim insufficient fund

Is Nigeria the only country running electricity, it is begining to sound like No amount is enough or will ever be enough to guarantee power supply ...

if you naa no sabi, leave the business for those wey really sabi naw

You suppose step down from that post, it like you know nothing about power. You can apply for another job like selling herbal supplements inside bus going to Aba or porthacourt.

Are you saying tariffs will be increased Honorable Minister?
To how much?
Can Nigerians afford it?

Babangidapikin:
Money you are using to subsidize why not provide free cheap prepaid meters ... They are just cheating you guys , it's not that they are supplying light eveeywhere just were they know big men are .

The problem is not prepaid meter. The problem here is that people are too broke to pay for light. Nigerians are poor... minimum wage is terrible. Even if you provide prepaid meters, people will still by them because they cannot afford to pay for power.

SmartPolician:


The problem is not prepaid meter. The problem here is that people are too broke to pay for light. Nigerians are poor... minimum wage is terrible. Even if you provide prepaid meters, people will still by them because they cannot afford to pay for power.

The same people that pay #200 per day to charge their phones can pay, just put a prepaid meter so people don't pay for darkness.

The Tinubu is clearly a satanic establishment sent to suffer and impoverish Nigerians .. Enough of these lies that Nigerians are not paying enough for electricity...we are currently paying 250kwh for very unreliable electricity with a minimum wage of 30k .


Below is a list of US states with electricity cheaper than 200 Naira per kilowatt hour and please note the minimum wage in these states is not less than 1.8million Naira yet Nigeria with 30k minimum wage is charging 250 Naira per KWH and claiming it's not enough

You and theiving APC government better don't increase any cost of electricity. How much are we earning for you thieves to be increasing electricity costs??

If at all, why not improve the electricity first before you raise costs...

Awon wicked souls

Babangidapikin:

The same people that pay #200 per day to charge their phones can pay, just put a prepaid meter so people don't pay for darkness.

That's a false assumption. If you cannot own a generator and fuel it when there's no NEPA light, you cannot afford to pay your bills. #200 per day is what they can afford, which sums up to #6000 per month. If you give someone like that a prepaid meter, he will by it. 6k per month cannot buy stable power.

Nigerians are poor. People just package themselves. Prepaid meter has its role, but that's not the solution. The solution is unbundling the power dynamics completely. I have explained that in a similar thread.

E be like say na solar

Babangidapikin:

The same people that pay #200 per day to charge their phones can pay, just put a prepaid meter so people don't pay for darkness.

So because they pay 200 naira to charge phone you should charge them higher than what Americans pay for electricity?

Goodlady:
Are you saying tattifs will be increased Honorable Minister?
To how much?
Can Nigerians afford it?

yes,it will be times 10.

SmartPolician:


That's a false assumption. If you cannot own a generator and fuel it when there's no NEPA light, you cannot afford to pay your bills. #200 per day is what they can afford, which sums up to #6000 per month. If you give someone like that a prepaid meter, he will by it. 6k per month cannot buy stable power.

Nigerians are poor. People just package themselves. Prepaid meter has its role, but that's not the solution. The solution is unbundling the power dynamics completely. I have explained that in a similar thread.

You make false assumptions , by the way they are penalties for bying light and not everyone would by light , people who by light are usually former NEPA staffs

This is one of the ministers that need to be sacked. I don’t understand what he’s saying here. He has done nothing since assuming this position. Does Tinubu not have anyone to help or even replace him? He seems to be in a ministry beyond his capacity.

SarkinYarki:


So because they pay 200 naira to charge phone you should charge them higher than what Americans pay for electricity?

I am at an outskirt , It's cheaper for me to use electricity if I remove the cost of paying for darkness than charging my phone outside.. but there's no electricity yet bills keeps coming.

I Adelabu on this. All subsides in the power sector should be removed. And the power sector is the only place I removal of subsides

From generation,transmission,distribution and others should be removed. As in the government should just be monitoring the sector. They should hands off completely just like the telecommunications sector.

Because the nonesense that happens in Nigeria,I am not sure it happens anywhere around the world. It is in Nigeria that wè the customers buy poles,transformers and the likes. All that rubbish should stop if the sector is truly privatised

Nlfpmod, this man put us in banditry to milk us for money. Now, just like every aspect of APC, Failure. They believed PDP failed, but they have made people poorer with 75% of villagers poorest.

From fuel to electricity.

Wait for them to inform us they cannot continue with agriculture subsidy.

Then air subsidy.

Scammers and fraudsters have found their place in government!

Tinubu should just kill everybody in this country

Good

MR KISS THE TRUTH IS NOT EXEMPTED

Smh

Why is the president still retaining this man as Minister?

For the light wey no dey?

Even Aso rock cannot afford to pay current tariff

How much more local man

This minister is one of the worst.

Federal government must give subsidies to the people, national revenue is not for politicians to enjoy alone.

Politicians can not be wasting public funds, spending lavishly and saying the people should not benefit from our free crude oil from God.

this kalo kalo man don come again? what is the problem again?

Imagine! Fuel subsidy, electricity subsidy, health subsidy and many things that can benefit the common man are all withdrawn by these thieving rogues to feather their own nest.