Minister of Power Adebayo Adelabu stressed the necessity of a $10 billion yearly investment for a decade to resuscitate Nigeria’s power sector. He made this revelation during a Senate committee hearing on halting the Nigerian Electricity Regulatory Commission (NERC)’s tariff increase.
Adelabu emphasized that without substantial investments, the sector’s stability remains in jeopardy. He highlighted the importance of attracting investors and lenders by making the sector commercially viable through a cost-reflective tariff structure.
Addressing concerns about the tariff increase, Adelabu explained that it’s essential to incentivize investors and address liquidity challenges. He noted that the sector had operated on a subsidized tariff, leading to significant unpaid liabilities to generating and gas companies.
The minister advocated for supporting debt payments across the sector’s value chain, assuring that the new tariff is tied to improved supply. He outlined ongoing projects like hydroelectric power investments and emphasized the need for sustainable reforms.
However, committee members expressed dismay over persistent electricity challenges despite sector unbundling. They called for protecting vulnerable Nigerians and proposed a tariff review to address public concerns.
Stakeholders present included NERC, Manufacturers Association of Nigeria (MAN), power generation and distribution companies (GenCos and DisCos), reflecting broad industry interest in the sector’s transformation.
