Minister of Power, Adebayo Adelabu has said Nigerians pay lowest tariff in West Africa.
He said Nigerians would agree to pay more if they got better electricity.
During his visit to the corporate headquarters of Ikeja Electric in Lagos State, Adelabu engaged in constructive discussions with the management team.
He stressed the need for collaboration among all stakeholders in the electricity supply chain and said everyone involved in making electricity should work together to set a fair price.
He said they should gradually stop giving subsidies for electricity, so the price reflects the real cost.
Adelabu also talked about how some companies that distribute power don’t invest enough in improving the system.
He said, “A lot of our distributors are satisfied with the status quo. There are some high-impact investments you can make in infrastructure that will double your fortune. It translates to increased revenue for you. Some Discos are not ready to put in any money, they are just satisfied getting that their monthly stipend pocket money.
“We will not allow that. That is why we are saying that if by persuasion we cannot achieve it, we will achieve it by legislation. We are looking at capitalisation requirements for Discos, which will compel them to pay more funds.
“Power business is highly capital intensive. It requires a lot of investments and infrastructure, and the investment can never be lost. It will also transform into sales and revenue for Discos. So we believe that our Discos must be ready to invest in high-impact infrastructure,” the minister said.
“Guinea, Togo, Mali, Ivory Coast, and all the neighbouring countries that we have that are supposed to be poorer than Nigeria, they pay more than double what we pay here. I believe that our people will be ready, once they are sure of reliable and consistent supply.,” he added.
While welcoming the minister to Lagos, the Chief Executive Officer of Ikeja Electric, Folake Soetan, said the challenges of the country’s power sector are not insurmountable.
He suggested making laws to make sure these companies invest enough money in important things like power lines and equipment. He said investing in these things can help make more money in the long run.
Adelabu acknowledged the hurdles confronting Nigerians amidst gas constraints impacting power supply, compounded by the increased cost of fuel following subsidy removal.
He expressed optimism that Nigerians would be open to paying higher electricity prices if it meant reducing their dependence on expensive fuel alternatives.
Drawing attention to the glaring contrast in electricity tariffs between Nigeria and its neighboring countries, Adelabu underscored that despite Nigeria’s economic stature, its neighbors paid more than double the tariff rates. He stressed the critical need for dependable and uninterrupted power supply to justify potential tariff hikes.
In response, Folake Soetan, the Chief Executive Officer of Ikeja Electric, extended a warm welcome to the minister and reaffirmed the company’s dedication to surmounting obstacles in the power sector.
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Soetan highlighted the strides made by the company in expanding its customer base and implementing metering initiatives.
However, she also raised concerns regarding energy theft and vandalism of assets, urging the minister’s assistance in tackling these pressing issues.
