Minister of Power, Chief Adebayo Adelabu, revealed that the Nigerian government heavily subsidizes electricity, as the cost to generate 1 kilowatt-hour of power is N120, while many consumers pay as low as N65 per unit.
During a visit by the House of Representatives Committee on Power, Adelabu emphasized the need to review electricity tariffs to address the sector’s financial challenges.
The government aims to accelerate infrastructure improvements to shift more consumers to higher tariff bands and ensure the sector’s sustainability.
Adelabu also highlighted the power sector’s recent achievement of generating, transmitting, and distributing 5,155.99 megawatts, a significant increase from the average of 4,000 megawatts when the current administration took office.
However, he noted that more work is needed, as it took Nigeria over 35 years to increase its capacity by 2,000 megawatts.
Meanwhile, the Managing Director of the Transmission Company of Nigeria (TCN), Engr. Abdulaziz Sule, stated that the TCN requires N1.5 trillion to complete 129 capital projects over the next three years.
He identified challenges such as aging equipment, infrastructure vandalization, and a lack of funds as major obstacles to effective electricity transmission.
Ongoing efforts to improve grid management, including the implementation of grid automation and SCADA systems, are expected to enhance grid stability and reduce transmission losses.
The Nation