• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Saturday, June 28, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

With N4.35trn Subsidy Debt, FG Plans Tariff Review For Band B, Others –Adelabu

by Nse Anthony - Uko
4 months ago
in Backpage
Minister of Power, Adebayo Adelabu

Minister of Power, Adebayo Adelabu

Share on WhatsAppShare on FacebookShare on XTelegram

The federal government of Nigeria is considering a review of electricity tariffs for Band B, C, D and E consumers, to address disparities in the current billing system and encourage investment in the power sector.

Advertisement

This move comes as the government grapples with a significant electricity subsidy debt burden of N4.35 trillion to generation companies (GenCos) and distribution companies (DisCos).
Minister of Power, Adebayo Adelabu, disclosed this in Abuja at the public presentation of the National Integrated Electricity Policy and the Nigeria Integrated Resource Plan.

The recent hike in Band A tariffs has already reduced the subsidy from about N3 trillion to N1 trillion, but the government still subsidises a large portion of electricity costs.

Adelabu emphasised the need for a more equitable pricing structure to ensure the sustainability of the power sector. The government’s financial constraints, including a proposed budget deficit of N13.08 trillion in 2025, underscore the urgency of revising electricity tariffs to reduce financial burdens. However, any tariff adjustments must balance economic realities with consumer affordability to avoid exacerbating economic hardships

He explained that the government is considering this adjustment due to the slow transition of customers to Band A, a situation he attributed to the reluctance of Distribution Companies to make the necessary investments.

RELATED

Sani And Erasing Rhythm Of Toxicity

Sani And Erasing Rhythm Of Toxicity

17 hours ago
Israel-Iran

Ruffled Feathers: Rejoinders To My Article On The Israel-Iran War

2 days ago

Under the current tariff structure, customers in Band B, who receive between 17 and 18 hours of electricity daily, pay N63 per kilowatt-hour, while Band A customers, who enjoy just two additional hours of supply, are charged N209 per kilowatt-hour.

Describing this pricing system as “unfair,” Adelabu stressed the need for a more balanced and equitable tariff regime. He assured Nigerians that the review would not automatically mean an increase in tariffs but a reassessment to improve efficiency and investment in the sector.

The minister also revealed that the federal government owes electricity generation and distribution companies over N4 trillion in electricity subsidies.

Breaking down the figures, he stated that N2 trillion is owed to Generation Companies as legacy debt, while another N1.9 trillion is part of the electricity subsidy for 2024.
In addition, Distribution Companies are owed N450 billion in subsidies for the same period.

Adelabu warned that the government could not continue with the current subsidy model and that a new approach would be introduced to ensure that only those who genuinely need subsidies benefit from them. He questioned how power generation companies could be expected to function optimally when they are struggling to pay for gas, maintain their turbines, and pay staff salaries due to the huge outstanding debts.

Reflecting on the past year, Adelabu highlighted key milestones achieved in the power sector, including the development of the National Integrated Electricity Policy, the attraction of over $1 billion in investment, and progress towards the full commercialisation of the sector.

He noted that electricity generation had increased from an average of 4,200 megawatts to 5,300 megawatts, while the country’s transmission capacity expanded by over 600 megawatts through the Presidential Power Initiative. He also mentioned that N700 billion was raised from the Federation Account Allocation Committee to implement the Performance Management Initiative.

Looking ahead to 2025, he outlined the government’s key priorities for the power sector, which include improving market liquidity, implementing state-led electricity projects, strengthening the Transmission Company of Nigeria, and advancing the “Mission 300” initiative aimed at boosting electricity supply.


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

BREAKING NEWS: Nigerians can now earn US Dollars from the comfort of their homes with Ultra-Premium domains, acquire them for as low as $1700 and profit as much as $25,000. Click here to learn how you can earn US Dollars consistently.


Tags: Adebayo AdelabuElectricity Tariff hike
SendShareTweetShare
Previous Post

Kwara Governor, Emir Lend Support For Fight Against GBV

Next Post

Key Additions To Rebased Consumer Price Index

Nse Anthony - Uko

Nse Anthony - Uko

You May Like

Sani And Erasing Rhythm Of Toxicity
Backpage

Sani And Erasing Rhythm Of Toxicity

2025/06/28
Israel-Iran
Backpage

Ruffled Feathers: Rejoinders To My Article On The Israel-Iran War

2025/06/27
Amid Dipping Revenue, Nigeria Must Modify Constituency Projects Scheme
Backpage

Amid Dipping Revenue, Nigeria Must Modify Constituency Projects Scheme

2025/06/26
Saints And Scoundrels – Honouring Nigeria’s Democracy On June 12, 2025
Backpage

Saints And Scoundrels – Honouring Nigeria’s Democracy On June 12, 2025

2025/06/25
Framing Leadership: Kaduna’s New Story
Backpage

Framing Leadership: Kaduna’s New Story

2025/06/24
Israel-Iran Conflict: The Nigerian Connection
Backpage

Israel-Iran Conflict: The Nigerian Connection

2025/06/23
Leadership Conference advertisement

LATEST

Bureaucratic Bottlenecks Delay Billionaire Dantata’s Burial In Saudi Arabia

Aikoriogie Hails Wike Over Reconciliation With Fubara, FCT Transformation

Kwara United Win 2025 President Federation Cup

PICTORIAL: 300 Journalists Benefit From Abuja NUJ, Nizamiye Hospital Medical Outreach

Nollywood Filmmaker, Kayode Peters, Dies In Canada

PICTORIAL: Mammoth Crowd Attends Ga’ib Funeral Prayer For Late Dantata In Kano

Meet Nigerian Fintech Expert, Business Dev’t Consultant Ken Nwokike

Fake News Threatens Military Morale — NYSDI

Akwa Ibom APC Chairman Killed In Brawl With PDP Supporters Over Largesse

Niger Killings: NEF Demands State Of Emergency In Northern Nigeria

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.