The Minister of Power, Adebayo Adelabu, has issued a stark warning to Nigerians, stating that failure to implement the planned increase in electricity tariffs could result in complete power outages across the nation within the next three months.
Speaking on Monday in Abuja during his appearance before the Senate Committee on Power to address inquiries into the recent electricity tariff hike by the Nigerian Electricity Regulatory Commission (NERC), the minister emphasized the critical need for tariff adjustments to sustain the power sector.
Adelabu emphasized the urgency of the situation, stating, “The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs.”
He underscored the importance of tariff increments in propelling the sector forward, highlighting the need to attract investors and secure necessary funding for infrastructure development.
“The increment will catapult us to the next level. We are also Nigerians; we are also feeling the impact,” Adelabu affirmed.
Addressing the financial challenges facing the power sector, Adelabu outlined the substantial investment required to revitalize the industry, citing an annual expenditure of at least $10 billion over the next decade for infrastructure stability.
He stressed the imperative of making the sector attractive to investors and lenders, emphasizing that commercial pricing is essential to attract the necessary funding.
“For us to attract investors and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing,” Adelabu asserted.
Highlighting the impact of tariff adjustments on investor interest, Adelabu noted positive responses from investors following the recent tariff increase for the A Band.
“If the value is still at N66 and the government is not paying subsidy, the investors will not come. But now that we have increased the tariff for A Band, there are interests being shown by investors,” he explained.
Adelabu’s caution underscores the critical juncture at which Nigeria’s power sector finds itself, urging stakeholders to embrace necessary tariff adjustments to sustain and enhance the nation’s electricity supply.
