The Minister of Power, Adebayo Adelabu, has revealed that for the first time in three years, Nigeria’s power sector reached an output of 5000MW this month, as stakeholders continue efforts to increase power production.
This was disclosed by the Minister of Power, Adebayo Adelabu, during the second day of the ministerial sectoral update for the present administration held in Abuja on Friday.
He stated that the rise in output clearly demonstrates the ministry’s dedication and efforts over the last nine months to boost production in the sector.
Adelabu, also stated that the rise in electricity tariffs for Band A customers is a temporary hardship pending an increase in power sector output, ex[ressing optimism that the tariff will gradually drop as the country’s power sector increases its output.
He mentioned that the cost-reflective tariffs for the premium customers were to drive liquidity in the power sector that is suitable to drive investment in the country.
“When it comes to generation capacity, 5000 megawatts (MW) of power was achieved in May in 2024 for the first time in three years.
“Exactly on 3rd of May 2024, we generated, transmitted and distributed 5,345MW instead of the usual 3,000MW.
“We all know what we passed through in February and March. But we rose to the occasion, and we made sure we changed the situation for the better.
“Our target is to achieve 6,000MW before the end of this year for the first time in the history of Nigeria.
We’ve improved grid generating capacity with the addition of 700MW in Geregu. We are also proposing the inclusion of 3,000 utility scale solar power sources within the next 24 months to change the mix of our energy generation,” Adelabu said.
On Band A tariff, he said, “The electricity tariff might look expensive at the moment. But I’m optimistic that these tariffs will go down. We know how much we are buying sim cards when Telecom just came. We knew how much we were buying telephones.
“But gradually as we scale up in generation, transmission and distribution, these prices will also go down. It’s a temporary hardship that will lead to a permanent gain,” Adelabu said.
In addition, the Minister said for the first time in the country’s history, the power distribution companies (DisCos) can guarantee 20 hours of power supply for a minimum of 15 per cent of customers under the Band A category.
According to Adelabu, no previous administration was able to ensure such a level of power supply to even one per cent of customers as has been done currently.
He also highlighted that the government has facilitated enhanced service levels in the sector, as DisCos now quickly address customer complaints.
“In distribution, our DisCos are more responsive and active. Today, discos will send you information and updates of power outages at a given period of time. Now, they have woken up to their responsibility because of improved regulatory oversights.
“For the first time in the history of Nigeria, we have what is called guaranteed improved service level.
“It might be for Band A today but no government has ever guaranteed 20 hours of supply not to even 1% of consumers. But to 15% of consumers, we said let us start from here.
“And we have guaranteed service level for Band A customers with the introduction of cost-reflective tariffs to that Band, a key liquidity condition suitable for driving investment,” Adelabu added.
