The federal authorities mentioned on Wednesday that it’s now “very troublesome to take care of electrical energy subsidies” because it confirmed the nation's energy debt continued to rise.
Minister of Vitality, Adebayo Adelabu, has mentioned Nigeria should begin shifting in direction of an economical tariff mannequin as he revealed that the nation at the moment has a debt burden of N1.3 trillion to electrical energy producers, whereas the debt to fuel corporations stands at $1.3. billion.
The minister spoke at a press convention in Abuja, which was additionally attended by the heads of all companies below the Federal Ministry of Vitality.
Adelabu said that solely N450 billion was budgeted for electrical energy subsidy within the 2024 price range, however careworn that findings by the Nigerian Electrical energy Regulatory Fee confirmed that the subsidy would devour about N2.9 trillion this yr.
Noting the complexity of the power sector disaster, he highlighted that the nationwide electrical energy grid had collapsed about six occasions between December 2023 and now.
In response to him, this was attributable to a scarcity of fuel, outdated equipment within the energy grid worth chain, low capability to evacuate the power generated and the destruction of energy vegetation in some components of the nation's northeastern geopolitical zone.
Okechukwu, a journalist with Punch Newspapers, has 15 years of expertise in power (power and petroleum), finance, agriculture, setting, humanitarian companies, works and housing, commerce and funding, capital markets, aviation and transport, ICT, amongst others.
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