$10bn Needed to Provide Adequate Electricity – Power Minister
The Minister of Power, Adebayo Adelabu has said the Federal Government needs about 10 billion dollars to salvage the power sector.
Speaking at the weekend during the Nigerian Electricity Regulatory Commission (NERC) retreat in Ikot Ekpene which had the theme: “Addressing Critical and Emerging Issues in the Nigerian Power Sector”, Adelabu said the FG owes over N200 billion electricity debt.
Adelabu, who said the 10 billion dollars amounts to a third of Nigeria’s national budget, wondered if the nation was willing to commit such a huge sum into the power sector, knowing that other critical sectors like defence, education and health also needed interventions.
He explained that for the expected turnaround in the power sector, foreign and local investors, as well as the Federal and State Governments must be willing to make the needed investment to salvage the current situation.
“We need about 10 billion dollars, which today is about N63 trillion. N63 trillion is almost a third of our national budget. Can we afford to put that alone in the power sector?
“So there must be some level of investment flow locally by investors and even foreign investment flows for this sector to be turned around. So those two things we have achieved under that. So we don’t have any excuse.
Expanding on the electricity debt burden of the FG, the Chairman, Senate Committee on Power, Senator Enyinnaya Abaribe said the tariff shortfall means that every month the government owes N200 billion.
Abaribe stated that since 2025 started, no payment has been made, bringing the debt burden this year to N800 billion, adding that already an existing N3 trillion debt was owed generating companies.
“There’s a liquidity crisis in the power sector. The generating companies are being owed so much, the distribution companies are also being owed so much. The tariff shortfall that we have means that every month the government owes N200 Billion of payments.
“In other words, for this year, 2025, no payment has been made. In other words, we’re already short by N800 billion. Prior to this time, we had about N3 trillion debt to the generating company.
“And of course, the generating companies are owing the gas suppliers. The gas suppliers cannot just continue to supply gas indefinitely,” he stated.
Akwa Ibom State Governor, Pastor Umo Eno stated that though power was the catalyst for economic growth and development, Nigeria was currently grappling with the huge challenges existing in the sector.
Eno, who was represented by the Deputy Governor, Senator Akon Eyakenyi said a steady supply of electricity was needed to unlock the potential of Small and Medium Enterprises in the country, adding that SME’s are the engine of economic growth in most societies
