Nigerian Minister of Power, Adebayo Adelabu, has revealed that citizens of neighbouring African countries such as Guinea, Togo, and Mali are paying more for electricity compared to Nigerians. He emphasized that if Nigerians experience improved power supply, they would be willing to pay higher prices for electricity.
During a visit to the corporate headquarters of Ikeja Electric in Lagos State, Adelabu underscored the need for stakeholders in the electricity supply chain to work towards removing electricity subsidies and adopting a cost-reflective tariff.
Adelabu expressed concern that some power distribution companies (Discos) were not investing adequately in power infrastructure. He indicated that the government would introduce legislation mandating Discos to increase their capitalization to ensure investment in critical infrastructure.
Highlighting the capital-intensive nature of the power business, Adelabu stressed that investments in infrastructure would lead to increased revenue for Discos. He emphasized the importance of ensuring reliable and consistent power supply to encourage Nigerians to pay higher tariffs.
The Minister acknowledged the challenges faced by Nigerians due to low power supply, particularly during periods of gas constraints. He noted that the removal of fuel subsidies has made generators’ fuel more expensive, exacerbating the situation for consumers.
Adelabu pointed out that despite being relatively wealthier than some neighbouring countries, Nigerians pay lower electricity tariffs. He indicated that over the next three years, Nigeria would transition to full cost-reflective tariffs, eliminating government subsidies.
In response to the Minister’s remarks, Folake Soetan, the Chief Executive Officer of Ikeja Electric, emphasized that the challenges in the power sector are not insurmountable. She highlighted Ikeja Electric’s efforts in expanding its customer base and improving infrastructure, including metering and acquiring new transformers.
Soetan, however, raised concerns about energy theft and asset vandalism, calling for government support in addressing these issues.
