The Minister of Power, Adebayo Adelabu, has declared that the country can no longer continue to subsidise electricity.
According to the minister, Nigeria must begin to move towards a cost-effective tariff model, adding that the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.
Adelabu said this when he addressed a press conference in Abuja on Wednesday, disclosing that only 450 billion naira was budgeted for subsidy this year.
He said that the ministry needs over two trillion naira to effect subsidy.
The minister said that states will now be allowed to generate power independently.