Minister of Power, Adebayo Adelabu, has called on Nigerians to accept cost-reflective electricity tariffs, stating that the economy can no longer sustain blanket subsidies.
Speaking during a meeting with the Chairperson of the Association of Power Generating Companies (APGC), Dr. Joy Ogaji, Adelabu emphasized the urgent need to fully liberalize the power sector.
A statement by his media aide, Bolaji Tunji, quoted the Minister as saying, “Citizens must pay the appropriate price for energy consumed. Targeted subsidies will continue for vulnerable Nigerians, but we must understand that our economy cannot sustain subsidies indefinitely.”
The meeting focused heavily on the N4 trillion debt owed to power generation companies (GenCos)—a crisis threatening to collapse Nigeria’s power infrastructure.
Adelabu pledged that a significant portion of the debt will be paid immediately, with the remainder settled within six months using promissory notes and other instruments.
President Bola Tinubu is also expected to meet with GenCos leadership soon to expedite the debt resolution process. Chairman of APGC and Mainstream Energy Solutions, Col. Sani Bello, described the sector’s liquidity crisis as a “critical threat,” warning that GenCos can no longer obtain loans or maintain infrastructure. Kola Adesina, Chairman of Egbin Power, added: “This is a national emergency.
Everything hinges on power—we cannot afford sector failure.” Ogaji outlined major challenges, including chronic payment defaults, unreliable gas supply, and forex instability. She noted that the naira’s plunge from ₦157/$1 in 2013 to ₦1,600/$1 had severely damaged GenCos’ capacity to repay loans and maintain assets.
