The Minister of Power, Adebayo Adelabu, has stated that many Nigerians no longer rely on fuel and diesel generators due to improved power supply across the country. He emphasized that it is now more economical for citizens to pay for stable electricity than to produce their own power using petrol or diesel.
Band A Tariff Offers Cheaper Electricity
Speaking at an event in Lagos, the minister highlighted that Nigerians on Band A tariff now realize the benefits of staying connected to the national grid. Adelabu explained that while it could cost up to N750 per kilowatt-hour to generate power with a petrol generator—given the current N1,000/litre petrol price—the Band A electricity tariff costs only N209 per kilowatt-hour.
He noted that diesel-powered generation remains even more expensive at N915 per kilowatt-hour.
Electricity as a More Efficient Option
Adelabu addressed concerns about rising electricity tariffs, arguing that the cost reflects a reallocation of resources.
“There’s a section of the media saying this revenue is an additional burden on consumers. No, it is not. It is simply a shift from what they used to spend on petrol and diesel to stable electricity.”
He emphasized that with the current stable power supply, many individuals and businesses no longer need to spend on petrol and diesel as they did in the past.
Improved Power Sector Performance
The Minister pointed out that in 2023, the power sector generated N1 trillion in revenue, while N16.5 trillion was spent on petrol and diesel to power generators across the country.
Using a metaphor, Adelabu compared consumers’ choices:
“Power sector consumers are like a beautiful bride that has now tried two matrimonies. If they want to be sincere, they know which of the husbands to remain with.”
He further explained that the government’s focus on commercialization would attract investments and ensure sustainable returns for stakeholders in the sector.
With these developments, Adelabu expressed optimism that Nigerians would continue to benefit from a more reliable and cost-effective power supply.
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