Monday, May 20, 2024

Nigerian government requires $10bn annually to revive power sector – Minister

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The Minister of Energy, Mr Adebayo Adelabu, says the Federal Authorities requires 10 billion {dollars} in annual funding to revive the ability sector for the subsequent 10 years.

Adelabu stated this in Abuja on Monday, at a one-day investigative listening to on halting the electrical energy tariff enhance by the Nigerian Electrical energy Regulatory Fee, NERC, organised by the Senate Committee on Energy.

“For this sector to be revived, authorities must spend nothing lower than 10 billion {dollars} yearly within the subsequent 10 years.

“That is due to the infrastructure requirement for the steadiness of the sector, however authorities can’t afford that. And so we should make this sector engaging to buyers and to lenders.

“So for us to draw buyers and funding, we should make the sector engaging, and the one means it may be made engaging is that there should be industrial pricing,” he stated.

Adelabu added: “If the worth remains to be at N66 and authorities isn’t paying subsidy, the buyers won’t come.

“However now that we’ve got elevated the tariff for a band, there’s curiosity being proven by buyers.”

The minister stated the most important problem within the sector was the absence of liquidity, saying that the sector had been working on a subsidised tariff regime, given the absence of a cost-reflective tariff.

He stated that the subsidy had not been funded over time as enormous liabilities have been being owed to the producing firms and the fuel firms.

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