Industry Revenue Increased by 70%.... Power Minister ..... Says Increment Lead To a 35% Reduction In Government's Subsidized Direct Shortfall

"We envisaged a subsidy of about #3trillion naira for the year 2024 based on the old values. This has been reduced to #1.94trn. That is a clear cut reduction of over #1trillion naira." Adelabu 

Abuja- Nigeria's Minister of Power Chief Adebayo Adelabu on Thursday in Abuja, disclosed that, improved revenue collection and ongoing market reforms has substantially reduced government subsidies and outstanding liabilities.

The Minister stated this during the Sixth Ministerial Press Briefing held at the National Press Centre.

According to the Minister, "Industry revenue has increased by 70% and that has lead to a 35% reduction in the governments subsidized direct shortfall.

Addressing journalists and stakeholders at the event, Adelabu disclosed that, "we envisaged a subsidy of about #3trillion naira for the year 2024 based on the old values. This, according to him, "has been reduced to #1.94trn. That is a clear cut reduction of over #1trillion naira," he stated.

The Power Minister noted that, the progress is attributable to financial discipline, improved liquidity in the Nigerian Electricity Supply Industry, NESI and strategic interventions such as the creation of the Nigeria Independent System Operator, NISO whose board was recently inaugurated. He pointed out that the move is demonstrative of the fact that financial viability and service delivery can coexist harmoniously.

He disclosed that, "the total tariff shortfall in the power sector has now been reduced by #700bn, with the Nigerian Electricity Liability Management Company, NELMCO also settling #7.36bn in post-privatization liabilities owed to Abuja Electricity Distribution Company, AEDC.

"These effort", according to the Minister of Power, "are part of a broader drive to clear the over #4trn in cumulative debts choking the sector," he stated.

The development comes amid heightened public concern over irregular and inflated electricity bills.

Advocacy groups have condemned the recent revelation that Lagos State Deputy Governor, Dr Obafemi Hamzat, received an N29m bill for April—an almost 1,000 per cent spike from March’s N2.7m.

The Executive Director of the Electricity Consumer Protection Advocacy Centre, Chief Princewill Okorie said, “This incident could be a positive turning point if it compels the state to investigate how these companies operate. The consumer protection agency is failing. Government oversight is weak. DisCos are breaking the law."

In a bid to enhance transparency and operational efficiency, Adelabu highlighted the separation of the Transmission Service Provider (TSP) from NISO.

“Now, we are separating the two functions. The provider of infrastructure is separate, and the driver of transmission activity is separate,” the Minister explained.

“I believe this marks a new beginning for our transmission activities,” he added.

He emphasized that this long-delayed reform, officially launched by the Vice President of Nigeria, Kashim Shettima on April 8 with the approval of President Bola Tinubu, will ensure clear accountability and measurable performance across the transmission value chain.

Adelabu said the creation of NISO would bring an end to the confusion that has plagued Nigeria’s power transmission operations. 

“If the driver is not driving well, we don’t know whether it is the driver who does not know how to drive, or it is the vehicle that is not good. Now, we will measure the driver separately,” he explained.


Meanwhile, power generation companies (GenCos) are sounding the alarm over the mounting debt burden, warning of an imminent nationwide blackout if the Federal Government fails to settle outstanding invoices totalling over N4tn.

“The power generated by GenCos has continued to be consumed in full without corresponding full payment,” said Col. Sani Bello (Rtd.), Chairman of the GenCos’ Board of Trustees.

“This situation has dire consequences for the GenCos and, by extension, the entire power value chain.”

Despite the progress reported by the Ministry of Power, experts insist that resolving NESI’s deep-rooted liquidity crisis will require consistent government action and full stakeholder collaboration.

Indicating his optimism in the power sector, Adelabu said, “This is a step forward. Under the new agenda of Mr. President, His Excellency Bola Ahmed Tinubu, we are laying the foundation for a more stable, reliable, and financially sustainable power sector."