State’s unpaid electricity bills to Kenya Power hit Sh7.35bn

Nigeria's Federal Government has reached a breaking point in its ability to subsidize electricity tariffs while simultaneously meeting the nation's demand for power, stated Power Minister Joseph Tegbe. The minister addressed the financial strain the country's electricity sector is under, focusing on the disparity between the expenses of generating and supplying electricity and the tariffs consumers pay.

Tegbe emphasized that the government can no longer sustain the current system of financial burden, which is primarily due to electricity subsidies. Additionally, he pointed out several key issues plaguing the sector, such as poor revenue collection, inadequate metering systems, and outstanding debts owed to power generation companies.

Tegbe revealed that the government is exploring a shift away from the Nigerian Bulk Electricity Trading (NBET) model to bilateral electricity agreements, aiming to enhance payment discipline and improve the financial stability of the electricity market. Moreover, Tegbe disclosed that the country suffers from a significant 40% metering gap, with over 700,000 meters already installed over a six-month period and plans to install 7.5 million meters within the next two to three years.