Minister for Power, Adebayo Adelabu, asserted that citizens from neighboring African nations such as Guinea, Togo, and Mali, pay significantly more for electricity compared to Nigerians. Adelabu emphasized that Nigerians would be willing to pay higher tariffs if they received a commensurate improvement in power supply.
Speaking during a visit to the corporate headquarters of Ikeja Electric in Lagos State on Thursday, Adelabu engaged in discussions with the management of the distribution company.
He underscored the necessity for all stakeholders in the electricity supply chain to collaborate towards establishing a framework for the removal of electricity subsidies, thereby ensuring a tariff reflective of costs.
Addressing concerns about inadequate investment in power infrastructure by some of the 11 power distribution companies (Discos), Adelabu proposed legislative measures to enforce capitalization requirements, compelling Discos to invest in essential infrastructure.
He emphasized the capital-intensive nature of the power business and its potential for increased revenue generation when coupled with substantial investments.
Adelabu acknowledged the challenges faced by Nigerians due to gas constraints affecting power supply, exacerbated by the unaffordability of fuel following subsidy removal. He expressed confidence that Nigerians would be willing to pay more for electricity if it alleviated their reliance on costly fuel alternatives.
Highlighting the disparity in electricity tariffs between Nigeria and neighboring countries, Adelabu pointed out that despite Nigeria’s economic status, its neighbors pay more than double the tariff rates. He emphasized the necessity for reliable and consistent power supply to justify potential tariff increases.
In response, the Chief Executive Officer of Ikeja Electric, Folake Soetan, welcomed the minister and affirmed the company’s commitment to overcoming challenges in the power sector. Soetan highlighted the company’s achievements in expanding its customer base and metering initiatives but flagged issues such as energy theft and asset vandalization, urging the minister’s support in addressing these challenges.”
