Minister Adelabu said for uninterrupted power supply, the sector needs $10bn annually for infrastructure, which is currently beyond government’s means.
The Minister’s disclosure was made at a one-day investigative hearing on halting the proposed increase in electricity tariff by 11 electricity distribution companies.
The session was organised by the Senate Committee on Power, amidst the biting economic situation in Nigeria.
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Adelabu stated that the sum must be spread across the period to end the liquidity challenge in the sector.
According to Adelabu, the federal government would need N2.8trn to subsidise electricity this year alone.
In his words, “The government will need about N2.8 trillion to subsidise electricity this year, and we looked at the government budget itself, we looked at the provision for subsidy, we discovered and confirmed that the government could not afford to pay.
“This government budget is N28 trillion N2 trillion is a subsidy for power separately. It is over 10 per cent of the budget, which is not realistic for us to ask the government to pay, ” the Minister said.
His analysis further triggered the lawmakers to bemoan their sad experiences pertaining power supply in the state.
