Power Minister and Adopted Apc Oyo Candidate 2027, Adelabu Urges Nigerians to Embrace Cost-Reflective Tariffs

Power Minister and Adopted Apc Oyo Candidate 2027, Adelabu Urges Nigerians to Embrace Cost-Reflective Tariffs

Minister of Power, Adebayo Adelabu, has called on Nigerians to embrace cost-reflective electricity tariffs, asserting that the nation’s economy cannot perpetually sustain subsidies.

During a meeting in Abuja with Dr. Joy Ogaji, Chairman of the Generating Companies of Nigeria (GenCos), Adelabu emphasized the critical need for full liberalization of the power sector. His special adviser, Bolaji Tunji, conveyed this message in a Sunday press statement.

The statement quoted Adelabu as stating, “Citizens must pay the appropriate price for the energy consumed. The Federal Government will continue to provide targeted subsidies for economically disadvantaged Nigerians. We have to understand that our economy cannot sustain subsidies indefinitely.”

The federal government has pledged to urgently address the crippling N4 trillion debt plaguing Nigeria’s power generation sector, aiming to prevent the imminent collapse of the nation’s power infrastructure.

Adelabu assured GenCos executives that the government will prioritize the immediate payment of a significant portion of the N4 trillion debt, with the remaining balance to be settled through other debt instruments. He announced plans to propose this strategy at an upcoming meeting between President Bola Ahmed Tinubu and the GenCos leadership.

“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,” Adelabu stated. He guaranteed the payment of the outstanding balance within six months using financial instruments like promissory notes.

“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” Adelabu affirmed, adding that President Bola Tinubu would meet with GenCos leadership to expedite the process.

The GenCos delegation was led by Col. Sani Bello, Chairman of Mainstream Energy Solutions and the Association of Power Generating Companies (APGA), who had previously warned of the sector’s dire state, highlighting the N4 trillion debt as a critical threat to operations. He cautioned that liquidity issues have left GenCos unable to secure loans or maintain infrastructure, stressing, “Without urgent intervention, the entire power ecosystem could collapse.”

Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, echoed this urgency, stating, “This is a national emergency. Everything hinges on power—industries, homes, hospitals. We cannot afford to let the sector fail.”

Adelabu acknowledged the government’s contribution to the sector’s challenges, promising not only to clear the debt but also to implement reforms that will ease operational bottlenecks.

Meanwhile, Ogaji detailed the systemic challenges undermining GenCos, including persistent payment defaults, inconsistent gas supply, and foreign exchange volatility.

She pointed out that the naira’s depreciation from ₦157/$1 in 2013 to ₦1,600/$1 has devastated maintenance budgets and loan repayments. “GenCos have borne unsustainable risks—from grid failures to unproductive taxes—while remaining patriotic,” she stated.

Adelabu outlined plans to steer the sector toward sustainability, including regulatory reviews aimed at reducing levies and enhancing market stability. He also urged GenCos to collaborate on advocacy efforts to educate Nigerians on efficient electricity use and the realities of tariffs.