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Electricity Tariffs To Crash With Time – Power Minister

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Electricity Tariffs To Crash With Time – Power Minister

Adebayo Adelabu, Minister of Power, has stated that the agony associated with increasing electricity tariffs in the country is only transitory and will pass.

While presenting his ministerial scorecard in Abuja on Friday, May 24, Adelabu stated that power distribution companies (DisCos) are now more responsive to their tasks due to improved oversight by the Nigerian Power Regulatory Commission (NERC).

He also predicted that power tariffs, like cellphone tariffs, will fall over time.

Adelabu said; “It might look expensive at the moment, but I am optimistic that these tariffs will go down. We know how much we were buying SIM cards when telecoms first came. We know how much we were buying the telephone sets. But gradually, it scaled off.

“Generation, transmission and distribution, these prices will also go down. So, it is a temporary hardship and it will lead to permanent gain.”

The power minister also announced that the Nigerian Electricity Supply Industry (NESI) has created a guaranteed service level for Band A customers who receive a minimum of 20 hours of supply per day for the first time in Nigeria.

He said; “For the first time in Nigeria, we have what we call guaranteed service level. It might be for Band A today, but no government has ever guaranteed 20 hours of supply, not to even 1% of consumers.

“But to 15% of consumers, we said let us start from here, and we have guaranteed service level for Band A customers with the introduction of cost-reflective tariffs to that band, including liquidity conditions suitable for driving investment.”

He stated that the NESI changes had prompted investments from the World Bank and the Nigerian Investment Sovereign Authority (NISA).

He attributed the industry’s growth to the Electricity Act 2023, noting that before President Bola Tinubu’s reforms, investors considered NESI unappealing due to its uninspiring tariff strategy and massive debt overhang.

Adelabu said; “We have been able to attract investment into the sector because before now, nobody was ready to touch this sector because the tariff policy was not inspiring; the debt overhang was too much.

“Nobody wanted to bring capital. Even bankers didn’t want to lend anybody money. But now that is a thing of the past.

“The federal ministry of power has launched the Nigerian Power Investment Opportunities and Guidelines 2.0 which highlights some of the opportunities in the sector.

“We have also attracted 500 million dollars initiative from NSIA (Nigerian Sovereign Investment Authority) and the World Bank $750 million.

“We are beginning to see some progress from the outcome of the reforms process and key achievements of the administration in the last year.”

He also stated that, contrary to popular belief, the electricity industry has improved over the past year.

Adelabu said; “The question is, has power improved? Yes. It is no longer where we were in February, and the journey of a thousand miles starts with a step in the right direction. We are facing the right direction.”

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli

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