The Minister of Power, Chief Adebayo Adelabu, has again raised concerns over the growing cost of electricity subsidies in Nigeria, warning that the current approach is not sustainable. According to him, the Federal Government now pays about ₦200 billion monthly as subsidy to cover shortfalls in the electricity sector, with the total debt owed to power generation companies (GenCos) now reaching ₦4 trillion. This includes ₦1.94 trillion for 2024 alone.
Chief Adelabu made this known over the weekend during a two-day retreat organised by the Senate Committee on Power. His comments were shared in a press release signed by his Strategic Communication and Media Aide, Mr Bolaji Tunji.
The Minister said the rising subsidy is draining public funds that should be used to upgrade power infrastructure. He said keeping electricity tariffs at the current levels is not realistic and called for urgent action to restructure the distribution segment of the power sector. According to him, without major investments in the distribution networks, progress in power generation and transmission will not improve electricity supply to homes and businesses.
He noted that despite reaching a historic power generation output of 6,003 megawatts in March 2025 and installing 61 new transformers in 2024, most Nigerians are still not seeing the benefits because the distribution companies (DisCos) are underperforming.
Chief Adelabu also spoke on the poor performance of many DisCos, blaming it on weak networks, lack of investment, and electricity theft. He said many of the companies have failed to meet expectations, despite promising technical partnerships during the 2003 privatisation process. He accused some of the investors of using loans from banks to acquire assets without investing in infrastructure, which has left millions of Nigerians in darkness.
The Minister revealed that in the fourth quarter of 2024, DisCos in northern Nigeria remitted just ₦124.4 billion (30%) out of their ₦408.86 billion invoice, with Abuja DisCo alone contributing 85% of the payment. In contrast, southern DisCos remitted ₦254.6 billion (67%), with Lagos DisCos providing 70% of that amount. He blamed these differences on better infrastructure in the South, especially Lagos, compared to the North where the networks are decaying.
Adelabu said the distribution segment remains the weakest link in the power chain despite revenue increasing from ₦1 trillion in 2023 to ₦1.7 trillion in 2024 due to tariff adjustments. He said the poor state of metering also affects revenue and consumer confidence. The government, he added, has launched a ₦700 billion Presidential Metering Initiative and is working with the World Bank to provide 4.3 million meters by 2025. So far, 75,000 meters were installed in April 2024, and 200,000 more are expected in May.
The Minister announced plans to improve supply in the North with major projects like the Makurdi hydropower plant (1,000 megawatts capacity) and the revival of the Kaduna thermal plant, which has 215 megawatts capacity and is currently 87% complete. He also disclosed that the Katsina State Government wants to take over the abandoned 10 megawatts windfarm project in the state in partnership with private investors.
On vandalism, Adelabu called on the National Assembly to pass stricter laws to protect power infrastructure. He said acts like power theft, meter tampering, and illegal connections should be treated as criminal offences. He explained that despite all the challenges, the national grid has remained stable in 2025, with no system collapse recorded so far this year. He attributed this to hard work and investments made in transformer upgrades.
The Minister also appealed for better funding for the Transmission Company of Nigeria (TCN), saying the agency is struggling to operate with its limited Internally Generated Revenue (IGR). He said TCN’s monthly income is not enough to pay salaries or maintain and expand its infrastructure. He urged the National Assembly to include TCN in the federal budget to allow it to function properly.
