The indebtedness of Nigeria’s power sector to electricity generating companies and gas producers has risen to about N3.3 trillion, the Federal Government has revealed.
It also revealed that subsidies on electricity for 2024 would gulp about N3 trillion, whereas only N450 billion was budgeted for this purpose in this year’s budget, adding that it was now very difficult to sustain power subsidies.
Adebayo Adelabu, Minister of Power, said Nigeria must begin to move towards a cost-effective tariff model, as he revealed that the country was currently indebted to the tune of N1.3 trillion to electricity generating companies, while the debt to gas companies was $1.3bn.
The minister, who spoke at a press conference in Abuja, which also had the heads of all the agencies under the Federal Ministry of Power in attendance, however, insisted that he would not resign his position as power minister following calls for his resignation by some people.
Adelabu said, “Today, we are owing a total of N1.3 trillion to the power generating companies, out of which 60 per cent is being owed to gas suppliers. Today we have a legacy debt, prior to 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2tn.
