During a visit to Ikeja Electric’s corporate headquarters in Lagos State, Minister for Power, Adebayo Adelabu, emphasized the contrast in electricity costs between Nigeria and neighboring African countries. Adelabu noted that citizens of countries such as Guinea, Togo, Mali, and Ivory Coast pay significantly more for electricity than Nigerians.
Adelabu stressed that Nigerians would be willing to pay higher tariffs if they received improved power supply in return. He urged stakeholders in the electricity supply chain to work towards the removal of electricity subsidies and the implementation of a cost-reflective tariff.
Addressing challenges within the electricity sector, Adelabu expressed concern about certain power distribution companies’ reluctance to invest in power infrastructure. He announced plans for legislation that would compel all distribution companies to meet capitalization requirements, ensuring investment in crucial infrastructure.
The Minister highlighted the capital-intensive nature of the power business and the necessity of investment in infrastructure. He emphasized that such investments would lead to increased revenue for distribution companies and improved service delivery for consumers.
Adelabu acknowledged the current frustrations among Nigerians due to low power supply, exacerbated by rising fuel costs resulting from subsidy removal. He stated that Nigerians would be willing to pay more for electricity if it relieved them of the financial burden associated with fueling generators.
In response to Adelabu’s visit, Ikeja Electric CEO, Folake Soetan, emphasized the challenges facing the power sector, including energy theft and asset vandalization. She highlighted Ikeja Electric’s efforts in expanding its customer base, metering initiatives, and infrastructure upgrades, while calling for government support to address these challenges.
