The Nigerian government says it can no longer continue to subsidize electricity, adding that the nation must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of N1.3 trillion to generating companies (GenCos) and $1.3 billion owed gas companies

The country’s Minister of Power, Adebayo Adelabu, addressing a press conference in Abuja on Wednesday, said only 450 billion naira (about 182 billion CFA) was budgeted for subsidy this year but the ministry needs over N2 trillion (about 820 billion CFA) for it.

He said state governments will now be allowed to generate power independently to supply power to their states.

The minister also said over N50 billion had been earmarked in the 2024 budget to build mini-grids to supply power to remote areas.