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Electricity grid
May 20, 2025
The Minister of Power, Mr. Adebayo Adelabu has warned that the N4 trillion subsidy backlog owed to generation companies, including N1.94 trillion for 2024, was unsustainable, with monthly shortfalls hitting N200 billion.
The minister disclosed this during a two-day retreat organised by the Senate Committee on Power in Ikot Ekpene, Akwa Ibom State.
According to him, “Without urgent capital injection into distribution networks, gains in generation and transmission will not translate to reliable electricity for households,” he said.
He noted that while market liquidity rose by 70 per cent, from N1 trillion in 2023 to N1.7 trillion in 2024, DisCos remained the weakest link.
Adelabu who cited poor remittance rates, especially in the North where only N124.4 billion (30 per cent) of N408.86 billion was paid in Q4 2024 said, in contrast, Lagos-based DisCos accounted for 70 per cent of Southern region payments.
“To address the metering gap, the government has launched a N700 billion Presidential Metering Initiative (PMI), with support from the World Bank.
“About 75,000 meters were deployed in April 2024, with 200,000 more expected in May.
“The goal is to install 4.3 million meters by 2025,” he said.
He announced plans to restructure underperforming DisCos, enforce compliance with performance targets, attract private investment in the grid, and regionalise the transmission network to reduce system-wide risks.
Adelabu stated that, to improve power supply in the North, the government was working to revive the 215MW Kaduna Thermal Plant, which he noted was 87 per cent completed but had been abandoned for five years.
He also noted that efforts were underway to restore and complete the facility.
Additionally, he said the government was developing the 1,000MW Makurdi Hydropower Project and facilitating the concession of the 10MW Katsina Wind Farm through public-private partnerships to boost regional energy capacity.
