“ FG Can No Longer Subsidise Electricity For Everyone” – Power Minister Warns Nigerians

Minister of Power Joseph Tegbe has said the Federal Government can no longer continue covering electricity tariff shortfalls while being expected to provide power to every Nigerian.Nigerian news subscription

Tegbe made the statement at an energy conference organised by the Harvard Business School Association of Nigeria in Lagos, where he discussed the financial challenges facing the electricity sector.

“We can’t keep covering tariff shortfalls and think we’ll give power to every Nigerian,” he said.

The minister explained that the government was considering changes to the electricity market, including greater use of bilateral agreements under which power producers supply customers or electricity distribution companies based on agreed commercial terms.

He also identified poor revenue collection, inadequate metering and outstanding debts owed to power generation companies as major challenges affecting the sector. According to him, Nigeria has a metering gap of about 40 per cent, while the government plans to deploy 7.5 million meters over the next two to three years.