The Minister of Power, Adebayo Adelabu has said that consumers are indebted to Generation Companies (GenCos) in the amount of N1.3 trillion.
He also revealed that the country owes gas companies $1.3 billion.
Adelabu, at a press conference held in Abuja on Wednesday, stated that the allocated subsidy budget for this year is only N450 billion. However, the ministry requires an amount exceeding N2 trillion for subsidy.
According to him, the grid has experienced multiple collapses since December 2023 due to a lack of gas, outdated machinery in the grid system, limited ability to distribute generated power, and damages to power stations in certain areas of the North-East region of the country.
The Transmission Company of Nigeria, according to him, has more than 100 uncompleted projects because of changes in contract values caused by foreign exchange rate fluctuations. As a result, the company has decided not to grant any new contracts until all of these projects are finished.
The minister, in addition, mentioned that there has been a provision of more than N50 billion in the budget for 2024 to construct mini-grids that will provide electricity to distant locations.
The minister cautioned that electricity distribution companies (DisCos) must improve their performance or risk having their licenses revoked.
Additionally, he mentioned that he has already made contact with the National Security Adviser, Nuhu Ribadu, seeking assistance in enhancing the security of power infrastructure.
