Adebayo Adelabu, the Power Minister, issued a stern warning on Monday, stating that the nation could face a complete power outage in the coming three months if the proposed increase in electricity tariffs is not put into effect.
Adelabu made this revelation in Abuja yesterday during his appearance before the Senate Committee on Power. The committee was conducting an investigative hearing into the recent hike in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC).
The Senate committee, led by Senator Enyinnaya Abaribe, had earlier rejected the new tariff regime. In response, Adelabu stated, “Without a tariff increase, the entire sector will collapse. Given the current situation, the entire country will plunge into darkness in the next three months if we don’t raise tariffs. This increase will propel us forward. We, too, are Nigerians and are feeling the impact.”
He further explained that an annual investment of $10 billion for the next decade is required to rejuvenate the nation’s power sector and address its ongoing challenges. He said, “To revive this sector, the government needs to spend at least 10 billion dollars annually for the next 10 years. This is due to the infrastructure needed for the sector’s stability. However, the government cannot afford this. Therefore, we must make this sector appealing to investors and lenders.”
Adelabu emphasized that the sector must be commercially viable to attract investors and investment. He also pointed out that the government’s inability to pay the outstanding N2.9 trillion subsidy was due to limited resources, which necessitates the need for measures to sustain the sector.
However, the Senate Committee on Power, led by Senator Enyinnaya Abaribe, expressed concerns over the plight of Nigerians and urged the minister and other key players in the sector to consider other alternatives.
