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From Isaac Anumihe, Abuja
Chief Adebayo Adelabu, Minister of Power, has revealed that his administration inherited over N4 trillion in debt in the power sector.
Briefing the press in Abuja on his achievements since assuming office, the minister said the debt had significantly impacted the sector.
He stated that before he took over, 50 per cent of electricity consumers were unmetered. Specifically, out of over 13 million customers, only six million were metered, while seven million were on an estimated billing system.
He described the situation as unfair and non-transparent.
In a bid to ensure effectiveness in the operation of the industry, he said the government facilitated the decentralisation of regulation in the sector, which led to the amendment of the Electricity Act.
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“In May 2023, the President, Commander in Chief of the Armed Forces. President Bola Ahmed Bola Tinubu immediately signed into law the amended Electricity Act of 2023 from which arose two major issues regarding the industry. Number one was the empowerment of subnational governments to play active roles in the power sector value chain.
“This empowered state governments and local governments to own and operate electricity at the generation level, transmission level and distribution level, unlike what we used to have when power sector activities were fully centralised under the Electricity Company of Nigeria (ECN) in the 60s. Now the National Electric Power Authority (NEPA) in the 70s up to 90s,” he said.
Adelabu acknowledged that at inception, the sector faced severe structural challenges, including low generation output, weak transmission infrastructure, high distribution losses, significant metering gaps, and a liquidity crisis in excess of N4 trillion.
“Between 2023 and 2025, however, the Federal Ministry of Power has implemented critical reforms and interventions resulting in measurable improvements in capacity infrastructure, policy framework, legislative framework, and sector financing,” he said.
According to him, as of 2023, installed generation capacity was 13,000 MW, while available capacity in terms of transmission and distribution was between 3,500 and 4,500 MW.
