Outgoing Minister of Power, Adebayo Adelabu, has advised President Bola Tinubu to implement cost-reflective electricity tariffs and recapitalise electricity distribution companies (DisCos) as part of measures to transform Nigeria’s power sector.
The recommendation was contained in his resignation letter dated April 22, addressed to the president, where he outlined key policy actions needed to consolidate reforms and accelerate improvements in electricity supply across the country.
According to Adelabu, although the sector has recorded notable progress, it continues to face significant challenges, including gas supply constraints, infrastructure vandalism, and the need for full commercialisation across the electricity value chain.
He noted that addressing the issues is critical to sustaining recent gains and achieving stable and reliable electricity supply nationwide.
“In view of this, I respectfully recommend the implementation of cost-reflective tariffs with targeted subsidies for vulnerable citizens to ensure financial sustainability while protecting the poor,” the minister said.
Adelabu also called for the recapitalisation and restructuring of the distribution companies to improve governance, technical capacity, and service delivery.
He further recommended strengthening market transparency and accelerating nationwide metering to eliminate estimated billing, as well as sustained investment in transmission infrastructure to enhance grid stability and wheeling capacity.
