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The Minister of Power, Adebayo Adelabu, has said that state governments will now be allowed to generate power independently.
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Adelabu said this while also announcing that the Federal Government of Nigeria cannot continue to subsidise electricity.
“If governments start supplying power to their respective states, it will enable Nigeria to begin to move towards a cost-effective tariff model,” he said.
Adelabu further said it will help Nigeria a lot as the country is still owing generating companies (GenCos) 1.3 trillion naira while it’s debt to gas companies stands at a staggering 1.3 billion dollars.
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The Minister of Power made all these known while addressing a press conference in Abuja on Wednesday.
Also according to him, a total amount of 450 billion naira was budgeted for subsidy in the year 2024 while adding that the ministry of Power actually needs over 2 trillion naira for subsidy.
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