Minister of Power, Chief Adebayo Adelabu yesterday disclosed that the Federal Government has paid N205 billion to electricity generation companies, GenCos, as part of efforts to reduce the N1.3 trillion debt owed to them.
Chief Adebayo who stated this when the House of Representatives Committee on Power visited the Ministry, said most electricity consumers in the country pay lower than the cost price of N120/kWh.
The Minister stated that “just about three weeks ago, out of the N1.3 trillion we are owing the GenCos we were able to pay them N205 billion. And they are also happy.
“But I will plead with the members of the House committee to help us mount pressure on the executives to continue to pay these people.
With fuel queues resurfacing on our roads, darkness should not join it. People that make too much noise about fuel queues are those that buy petrol or diesel for their generators. Maybe if we have stable electricity they will be able to stay in their house and enjoy parts of life”.
He harped on the importance of having a cost reflective tariff for the electricity market, pointing out that that was the only way to attract investments.
Adelabu explained that but for the expected opposition from consumers, the government would have pushed the electricity tariff for Band-B customers to about N160/kWh which would have guaranteed a minimum supply of 16 hours daily.
States demand N600bn from TCN
Meanwhile, the Managing Director of the Transmission Company of Nigeria, TCN, Engr Abdulaziz Abubakar has told the House Committee on Power that state governments were demanding over N600 billion from the company for ground rents for its substations dating back to the 1970s.
Engr. Abubakar said the company does not have that kind of money and is unable to meet the demands of the governors.
He also asked for the intervention of the legislators over import duties and value added tax imposed on equipment brought into the country to improve transmission infrastructure in the sector.
Earlier, the Chairman, House Committee on Power, Rep. Victor Nwokolo harped on the need to improve power supply in the country.