Adelabu Defends Cost Reflective Tariff, Warns Against Disrupting Reforms

The immediate past Minister of Power, Chief Adebayo Adelabu, has defended the introduction of the Cost Reflective Tariff (CRT) in Nigeria’s power sector while warning against any disruption to ongoing reforms.

He stressed that although reforms like the CRT may be unpopular, they are essential for sustainable, efficient, and affordable electricity supply.

Adelabu made these remarks on Thursday during the formal handover of the Ministry of Power to the Permanent Secretary in Abuja. He urged top civil servants to guide the incoming minister in building on the existing foundation, aligning with President Bola Ahmed Tinubu’s vision for reliable power supply.

According to him, years of inadequate attention by successive governments contributed to the sector’s challenges, and addressing them required deliberate and strategic planning—efforts he said were pursued during his two years and eight months in office.

He emphasised that sustaining the reforms would require courage from both technocrats and political leaders to firmly establish the power sector value chain on a sound footing.

“These reforms are a journey, not an immediate destination. If the process is disrupted, it could derail progress. Civil servants and technocrats must therefore guide the incoming leadership to sustain and build on what has been achieved,” he said.

Adelabu likened the reform process to laying a foundation on swampy terrain, explaining that while initial efforts may not be visible, they are critical to long-term success.

“Our achievements may not yet be obvious to Nigerians, but as the next leadership builds on them, their impact will become clear,” he added.

He highlighted key milestones, including the signing of the Electricity Act 2023, which decentralised and liberalised the sector, enabling sub-national participation. He disclosed that 16 states have already keyed into the evolving power market, with increased private sector involvement through Generation Companies (GenCos) and Distribution Companies (DisCos).

However, he expressed concern that DisCos have largely failed to meet their investment obligations since the 2013 privatisation, urging the government to critically review their licences when due.

Adelabu defended the introduction of the Cost Reflective Tariff (CRT), acknowledging its initial resistance but noting that it was essential for the sector’s sustainability.

“Reforms are often unpopular, but we must move beyond the status quo if we are to develop as a nation,” he said, adding that he carried out his duties with a clear conscience and in the national interest.

The former minister also confirmed that he resigned with the approval of President Tinubu to pursue his governorship ambition in Oyo State. He recalled a similar move in 2019 when he resigned as Deputy Governor of the Central Bank of Nigeria (CBN) to contest the same position.

“My commitment to the welfare and development of my people remains strong. This ambition is not a do-or-die affair, but I am confident that this time, we will succeed,” he said.

In their remarks, the chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Musiliu, and the managing director of the Nigeria Independent System Operator (NISO), Engr. Mohammed Bello, commended Adelabu’s courage in confronting long-standing challenges in the sector, particularly the implementation of the Cost Reflective Tariff, which previous administrations had avoided.