The Federal Government is working on a plan to transition Nigeria’s electricity sector to a cost-reflective tariff regime to halt the mounting N4 trillion debt owed to power generation companies.
Minister of Power, Adebayo Adelabu, disclosed this at the Mission 300 Stakeholders Engagement meeting in Abuja.
According to him the outstanding debt to power generation companies stands at about N4 trillion as of December 2024.
He said government aims to transition to a fully cost-reflective regime while implementing targeted subsidies for economically vulnerable citizens.
“The government’s power reform agenda includes: Recovering idle generation capacities,
Expanding the country’s energy mix, Integrating cheaper, cleaner energy sources into the national grid, Resolving market liquidity challenges, Expanding transmission infrastructure, Stabilizing the national grid and Prioritizing rural electrification and energy transition initiatives” he stated.
The stakeholders’ meeting aimed to align strategies and foster partnerships needed to convert the Nigeria Energy Compact into tangible outcomes.
