Electricity subsidy can no longer continue – FG

Adebayo Adelabu, the Minister of Power, has declared that the government can no longer continue to subsidise electricity.

According to the minister, Nigeria must begin to move towards a cost-effective tariff model, adding that the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.

Adelabu made this known while addressing a press conference in Abuja on Wednesday.

He disclosed that only 450 billion naira was budgeted for subsidy this year and that the ministry needs over two trillion naira to effect subsidy.

The minister said that states will now be allowed to generate power independently.