The minister of power has announced a federal investigation into the legality of the five-year license extension granted to privatized power distribution and generation companies.
Adebayo Adelabu disclosed at a press briefing on Wednesday that the companies’ operating licenses should have expired on 31 October 2023.
He advocated for better commercialization while describing the 2013 power sector privatisation as a mistake.
Adelabu suggested the possibility of the government taking control of power distribution companies despite owning a 40 percent stake in the various firms.
The minister said President Bola Tinubu intervened to stop the implementation of a proposed electricity tariff hike.
This means the government would continue subsidy payments for nationwide power consumption until there is an increase in power supply.
Adelabu acknowledged the challenges in the power sector and emphasized that tariff increases would only be implemented after thorough sensitization and communication with the public.
He pointed out that Nigeria's current power generation of about 4,000 megawatts was unacceptable and that efforts were underway to increase this capacity.
