WED, FEB 14 2024-theGBJournal| The Minister of Power, Adebayo Adelabu said on Wednesday that state governments will now be allowed to generate power independently to supply to their state, as the Federal Government can longer continue to subsidize electricity.
The Minister while addressing a press conference in Abuja noted that only N450 billion was budgeted for subsidy this year but the ministry will need N2 trillion naira for subsidy.
He said it is about time the nation begins to move towards a cost-effective tariff model, as the country is currently indebted to the tune of N1.3 trillion to generating companies (GenCos) and $1.3 billion owed to gas companies.
He attributed the grid collapse that occurred between December 2023 and now was caused by shortage of gas, aging machines in the grid value chain, low capacity to evacuate generated power, and the destruction of power stations in some parts of the North-East geopolitical zone of the country.
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