Nigeria Cannot Sustain Electricity Subsidy, GenCos Are Being Owed N1.3 Trillion, Says Power Minister Adelabu
<p>He said that all outstanding debts to gas companies must be paid in order to begin to stabilise power in the country.</p>
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The Minister of Power, Bayo Adelabu, has said Nigeria cannot continue to subsidise electricity, adding that the nation must begin to move towards a cost-effective tariff model.
The minister said this in a briefing in Abuja on Wednesday, where he stated that only N450 billion was budgeted for subsidy this year, but the ministry needs over N2 trillion for subsidy.
Adelabu also said, in the briefing, that the problem of lack of electricity in Nigeria had been worsened by the debts owed the Generation Companies (Gencos).
He described the issues as multiple technical operational problems across all segments in the value chain, but made complicated by lack of sustaining liquidity and infrastructure funding, as well as structural misalignment.
“The simple technical operational issues are: shortage of gas supplies and aging dilapidated generation machineries causing below optimal capacity utilisation,” he said.
He also listed inadequate power evacuation capacity at Genco locations, coupled with unstable and fragile transmission lines, devoid of automated frequency controls, lacking in fail-over or back-up capacity with frequent human disturbances through vandalism and theft.
Others, he said, are: Aging weak distribution infrastructures (lines and transformers) coupled with huge meter gaps causing unbearably large technical and collection losses.
“These are issues that look so simple on the surface and should ordinarily require little efforts to fix over time. However, it’s been quite difficult to get these problems fixed over the years due to the complications wrapping the entire value chain end to end.
“The major complications are: The persistent liquidity issues coming from inappropriate tariff regime, poor collections and inadequate funding of government subsidies leading to huge debts owed to the transmission, generation and gas supply companies.
“This has restricted investments required for sustaining supply flow, capacity expansion and infrastructural improvements. It has also not only discouraged lending to the sector by financial institutions as the sectoral activities are not bankable, but has also made the sector unattractive to new investors,” he said.
The second complication, he maintained, is the value chain structural issues bordering on operations and control of generation, transmission and distribution segments.
According to him, there has been an inability of the Nigerian electricity supply industry to adhere to market rules and to enforce market discipline. This, he said, has led to each segment in the value chain operating on a best endeavour principle.
Adelabu said the third complication is the lack of clear and unambiguous definition of the concept of electricity as a nation.
On the roadmap for stabilising the sector in preparation for turnaround, he said there was a need for settlement of existing sectoral outstanding debt obligations to the gas supply and power generation companies, using partly cash payment and guaranteed debt instruments.
“Settlement of existing sectoral outstanding debt obligations to the gas supply and power generation companies using partly cash payment and guaranteed debt instruments. N1.3 trillion is current debts to the Gencos and $1.3 billion legacy debts to the Gencos,” he added.
On ongoing activities in the ministry and its agencies to improve power supply, he said they include augmentation of the hydro plants and thermal plants.
The recent completion of the 700MW Zungeru Hydro Electricity Power Plant in Niger State.
He also highlighted the financing of the required infrastructure to enable complete evacuation of the 40MW Kashimbila Hydro Power Plant in Taraba state using the Promissory Note facility at the Debt Management office (DMO).
In addition, he mentioned the resuscitation of abandoned 26 small and medium size Hydro plants across the country with solar hybridisation, negotiations to settle the huge outstanding debts obligations to the Gencos using cash injection and guaranteed debt instruments.
Speaking on frequent grid collapses, he said this was caused by shortage of gas, ageing machines in the grid value chain, low capacity to evacuate generated power, and destruction of power stations in some parts of the North-East geopolitical zone of the country.
He said the Transmission Company of Nigeria has over 100 abandoned projects due to variations on contract figures as a result of the fluctuations of the FX, hence the company will not award any new contracts till all such projects are completed.
The minister also said over N50 billion had been earmarked in the 2024 budget to build mini grids to supply power to remote areas, adding that electricity Distribution Companies (DisCos) should sit, and anyone found wanting will have their licences withdrawn.
The minister also said he has reached out to the National Security Adviser (NSA), Nuhu Ribadu, to help provide security for power infrastructure.
Recently, power supply has been fluctuating, sometimes to as low as 2,000mw, as the roughly 24 thermal power plants continue to shut down due to inadequate gas supply.
Typically, operators sell gas in dollars to power plants since most segments of their investments are priced in the US dollar, but Gencos have recently found it difficult to pay since they get their own payments in naira which had been badly devalued in recent months.
Upon that, they have complained of underpayments recently, with their association saying last year that the federal government owed them over N1 trillion.
Although Nigeria has a huge proven gas reserves of 206 trillion cubic feet, it has not been able to take advantage of it due to very low investment in the sector, due in part to the price regulation of $2.18 per million British Thermal Units (MMBtu) for gas-to-power charges.
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It was an all-emotional and difficult moment as the mortal remains of highlife legend, Alfred Benjamin (A.B) Crentsil was laid to rest. Family and friends…
<img src="https://www.mtlblog.com/media-library/a-woman-sitting-on-the-centerline-of-a-scenic-road-surrounded-by-forests-and-mountains-along-canadas-route-66-right-a-woman-s.jpg?id=56562824&width=1200&height=600&coordinates=0%2C36%2C0%2C36"/><br/><br/><p>If you're suddenly considering cancelling or changing <a href="https://www.mtlblog.com/government-travel-advice-winter-2025">your travel plans</a> this year — for whatever reason — and are instead thinking of a Canadian staycation, look no further!</p><p>Canada is jam-packed with <a href="https://www.mtlblog.com/air-transat-montreal-spain">jaw-dropping destinations</a> that'll make you feel like you've been transported to another place, whether that's Hawaii, The Hamptons, <a href="https://www.mtlblog.com/magic-for-canadians-disney-discount-deal-from-canada">Disney World</a>, or somewhere else.</p><p>From Canada's answer to Route 66 to "Little Hawaii" and beaches that'll remind you of Florida, these Canadian destination dupes are perfect if you're looking to blow your travel budget at home this year.</p><p>Even better, you won't need to fork out for an international flight or pack your passport. Perfect!</p><h3>The Grand Canyon of the North</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/B3AsJTZhPpv/?utm_source=ig_web_copy_link" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/B3AsJTZhPpv/?utm_source=ig_web_copy_link" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Stikine River Provincial Park, Stikine Region, BC</p><p>The Nickname: "The Grand Canyon of the North"</p><p>Why You Need To Go: You don't have to catch a flight to Arizona to witness a breathtaking canyon. Canada has its own Grand Canyon of the Stikine, and it's just as spectacular as its famous southern counterpart.</p><p>Located in Stikine River Provincial Park in northern B.C., this 80-kilometre-long canyon was carved by the Stikine River, creating towering cliffs, deep gorges, and dramatic rock walls that mirror its famous U.S. look-alike.</p><p>Unlike the bustling Grand Canyon in Arizona, the Canadian version remains pretty under the radar, promising rugged, untamed beauty with a fraction of the tourists. </p><p><a href="https://bcparks.ca/stikine-river-park/" rel="noopener noreferrer" target="_blank">Stikine River Park website</a></p><h3>Little Hawaii</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CWHBiY-v46l/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CWHBiY-v46l/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Tribune Bay, Hornby Island, BC</p><p>The Nickname: "Little Hawaii"</p><p>With powdery-soft sand and aquamarine waters, this B.C. gem could easily be mistaken for a tropical escape. </p><p>Tribune Bay Beach on Hornby Island is nicknamed "Little Hawaii" by those who've visited, thanks to its shallow, sun-warmed sea and postcard colours. While there are no palm trees swaying in the breeze, vibrant wildflowers and lush greenery make for their own island charm. <br/></p><p>On a sunny day, you'll easily be transported to Honolulu — no passport required!</p><p><a href="https://bcparks.ca/tribune-bay-park/" rel="noopener noreferrer" target="_blank">Tribune Bay Park website</a></p><h3>The Coney Island of the Great Lakes</h3><br><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CeJJiBBLyO8/?utm_source=ig_web_copy_link" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CeJJiBBLyO8/?utm_source=ig_web_copy_link" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Port Stanley, ON</p><p>The Nickname: "The Coney Island of the Great Lakes"</p><p>Why You Need To Go: If you want to spend your travel budget in Canada this year, forget Brooklyn and add Ontario to your bucket list.</p><p>For a taste of Coney Island's boardwalk charm, head to Port Stanley —dubbed "The Coney Island of the Great Lakes." Located just a few hours from Toronto, Port Stanley is best known for its soft sandy beaches and sparkling blue waters, making it perfect for sunbathing, swimming, or just unwinding by the shore. </p><p>While the town's amusement park heyday — complete with a roller coaster, casino, and Ferris wheel — is long gone, you can still stroll through its quaint streets lined with boutiques and cafes, hop aboard the Port Stanley Terminal Rail for a scenic ride, or enjoy fresh-caught fish at one of the local restaurants. </p><p><a href="https://www.elgintourist.com/portstanley" rel="noopener noreferrer" target="_blank">Port Stanley tourism website</a></p><h3>The Hamptons of the North</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/DAbKENXJBe4/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/DAbKENXJBe4/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Muskoka, ON</p><p>The Nickname: "The Hamptons of the North"</p><p>Why You Need To Go: Located in Ontario, this celeb hotspot is <a href="https://www.narcity.com/muskoka-ontario-has-so-many-resorts-known-as-hamptons-of-the-north" rel="noopener noreferrer" target="_blank">Canada's answer to The Hamptons</a>, and it's not hard to see why.</p><p>With glistening lakes, charming villages, upscale communities and lavish cottages, this little slice of Canadian paradise draws comparisons to its transatlantic inspiration, which is situated on the eastern tip of Long Island, New York.</p><p>Like its American counterpart, Muskoka is a favoured vacation spot for rich and famous travellers. A bevy of celebrities, including Justin Bieber, David Beckham, Tom Hanks and Steven Spielberg, <a href="https://www.narcity.com/toronto/celebs-that-spend-summer-in-ontario" rel="noopener noreferrer" target="_blank">have been known to either vacation or own property in Muskoka</a>, which means you'll be in good company if you do decide to visit.</p><p><a href="https://www.discovermuskoka.ca/" rel="noopener noreferrer" target="_blank">Muskoka tourism website</a></p><h3>Daytona of the North</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/DC1qUYfR8Qs/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/DC1qUYfR8Qs/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Sauble Beach, ON</p><p>The Nickname: "Daytona of the North"</p><p>Why You Need To Go: You don't have to head south to find sunshine, soft sandy shores, and warm water this summer. Sauble Beach, tucked along the shores of Lake Huron, promises a tropical getaway vibe right here in Canada.</p><p>Nestled in Ontario, this sandy stretch has earned its title "Daytona of the North," and it's not just a catchy nickname. With velvety-soft sand, crystal-clear waters, and a lively summer atmosphere, this destination easily rivals its sun-soaked southern counterpart.</p><p><a href="https://saublebeach.com/" rel="noopener noreferrer" target="_blank">Sauble Beach website</a></p><h3>Canada's Big Apple</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CmwY9-MtyHK/?utm_source=ig_web_copy_link" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CmwY9-MtyHK/?utm_source=ig_web_copy_link" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Toronto, ON</p><p>The Nickname: "Canada's Big Apple"</p><p>Why You Need To Go: New York may be the city that never sleeps, but Toronto can be every bit as electric — without the exchange rate headache.</p><p>Occasionally dubbed "Canada's Big Apple," this bustling metropolis delivers the same skyscraper-studded skyline and diverse neighbourhoods that make NYC an international icon. World-class shopping? Check. Michelin-star dining? Check. Iconic sports teams? Check.</p><p>In fact, Hollywood loves using Toronto as a stand-in for New York, filming movies and TV shows like <em>Suicide Squad</em>, <em>American Psycho,</em><strong> </strong><em>The Incredible Hulk</em>, and <em>Suits, </em>among others, in the Canadian hub. </p><p>If Hollywood doesn't bother splurging for the real deal, why should you?</p><p><a href="https://www.toronto.ca/explore-enjoy/visitor-toronto/" target="_blank">Toronto tourism website</a></p><h3>Canada's Route 66</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CsHqP8Tv7c9/?utm_source=ig_web_copy_link" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CsHqP8Tv7c9/?utm_source=ig_web_copy_link" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Trans-Canada Highway, Canada</p><p>The Nickname: "Canada's Route 66"</p><p>Why You Need To Go: If an iconic road trip is on your 2025 itinerary, you don't necessarily need to cross the Canada-U.S. border.</p><p>Considered <a href="https://www.narcity.com/canadas-version-of-route-66-charming-towns-natural-wonders" rel="noopener noreferrer" target="_blank">Canada's answer to Route 66,</a> the Trans-Canada Highway stretches an epic 7,821 kilometres from the Atlantic to the Pacific, showcasing the country's most breathtaking landscapes, vibrant cities and cozy small towns along the way.<br/></p><p>While Route 66 takes travellers from Chicago to Santa Monica, the Trans-Canada Highway highlights some of Canada's most iconic cities, including Vancouver, Calgary, Toronto and Montreal. The journey also weaves through everything from the towering peaks of the Rockies to the golden prairies and rugged Atlantic coastline, offering a front-row seat to Canada's diverse beauty.</p><h3>Canada's Jurassic Park</h3><br><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CfNbKetFo2-/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CfNbKetFo2-/?utm_source=ig_web_copy_link&igsh=MzRlODBiNWFlZA==" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Dinosaur Provincial Park, AB</p><p>The Nickname: "Canada's Jurassic Park"</p><p>Why You Need To Go: If you want a staycation that'll transport you out of Canada — and maybe this world entirely — look no further.</p><p>Tucked away in the heart of Alberta's Badlands, <a href="https://www.narcity.com/calgary/alberta-small-town-dinosaur-capital-of-the-world-jurassic-park" rel="noopener noreferrer" target="_blank">Dinosaur Provincial Park</a> is a prehistoric wonderland that feels like it was ripped straight from a Spielberg film, minus the rampaging raptors. </p><p>Don't stress about visiting Orlando's Universal Studios for your dino fix, though. This UNESCO World Heritage Site is one of the richest fossil beds on Earth, home to over 50 species of dinosaurs that roamed these lands millions of years ago. </p><p>Visitors can walk in the footsteps of real dinosaurs, join guided fossil digs or hike through the surreal terrain where paleontologists are still unearthing ancient bones.</p><p><a href="https://albertaparks.ca/parks/south/dinosaur-pp/" rel="noopener noreferrer" target="_blank">Dinosaur Provincial Park website</a></p><h3>The Canadian Disney World</h3><br/><blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/CjOHyn8OQIX/?utm_source=ig_web_copy_link" data-instgrm-version="4" style="background:#FFF; border:0; border-radius:3px; box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width:658px; padding:0; width:99.375%; width:-webkit-calc(100% - 2px); width:calc(100% - 2px);">
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<a href="https://www.instagram.com/p/CjOHyn8OQIX/?utm_source=ig_web_copy_link" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">See on Instagram</a>
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</blockquote><script async="" defer="" src="//platform.instagram.com/en_US/embeds.js"></script><p>Address: Canada's Wonderland, Vaughan, ON</p><p>The Nickname: "The Canadian Disney World"</p><p>Why You Need To Go: For thrill-seekers and theme park lovers, <a href="https://www.narcity.com/tag/disney-world" rel="noopener noreferrer" target="_blank">Disney World</a> might be the gold standard, but <a href="https://www.narcity.com/places-in-canada-like-disney-world" rel="noopener noreferrer" target="_blank">Canada has its own amusement park powerhouse</a> packed with just as much excitement. </p><p>Just north of Toronto, Canada's Wonderland is the country's largest theme park, boasting over 200 attractions, 18 roller coasters, and an entire water park.</p><p>While it may not have Cinderella's Castle, Wonderland makes up for it with record-breaking rides. The park is home to <a href="https://www.canadaswonderland.com/rides-experiences/leviathan" rel="noopener noreferrer" target="_blank">Leviathan</a>, Canada's tallest and fastest roller coaster, towering at 306 feet and hitting speeds of 148 km/h. If that's not enough adrenaline, there's <a href="https://www.canadaswonderland.com/rides-experiences/yukon-striker" rel="noopener noreferrer" target="_blank">Yukon Striker</a>, the world's longest, fastest, and tallest dive coaster, featuring a 90-degree drop straight into an underwater tunnel. </p><p><a href="https://www.canadaswonderland.com/" rel="noopener noreferrer" target="_blank">Canada's Wonderland website</a></p></br></br><em>Before you get going, check out our <a href="https://www.mtlblog.com/responsible-travel-guidelines" target="_blank">Responsible Travel Guide</a> so you can be informed, be safe, be smart, and most of all, be respectful on your trip.</em>
