By Sabiu Abdullahi
President Bola Tinubu has intervened to prevent the implementation of a planned hike in the electricity tariff, according to the Minister of Power, Adebayo Adelabu.
Speaking at a press briefing in Abuja on Wednesday, Adelabu revealed that President Tinubu insisted on subsidizing power consumed nationwide, addressing concerns about the impact of tariff hikes on the citizens.
Adelabu also disclosed that the Federal Government would investigate the legality of the five-year license extension granted to privatised power distribution and generation companies.
He noted that the operating licenses of these firms would have expired on October 31, 2023, raising questions about the extension’s validity.
Furthermore, the minister expressed his commitment to improving the power sector’s performance.
He announced his intention to dismiss any non-performing chief executive officers in agencies under the power ministry, underlining his determination to enhance efficiency in the sector.
Addressing the issue of cost reflective tariff, Adelabu acknowledged the sensitivity of the power industry and the challenges associated with implementing tariff hikes.
He explained, “The power sector is very sensitive to any leader. You cannot jump overnight and implement the cost reflective tariff.”
Adelabu indicated that while tariff adjustments are necessary for the sector’s sustainability, the President has opted to delay such changes until there is regular and incremental power supply.
He cited factors like the rising exchange rate and the cost of gas, which constitutes a significant portion of power generation, as reasons for the tariff increase.
The minister assured the public that tariff adjustments would occur after extensive sensitization and communication with citizens, coupled with assured incremental and regular power supply.
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