‘Implement cost-reflective tariff, recapitalise DisCos’ — Bayo Adelabu advises Tinubu on power sector transformation

Adebayo Adelabu, minister of power, 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.

Adelabu gave the recommendation 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.

The recommendations follow the minister’s announcement of his intention to vie for the post of governor in Oyo State.

His resignation will take effect April 30.

Adelabu said 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.

The minister added that stronger enforcement of performance standards and contractual obligations across the electricity value chain is necessary to improve sector efficiency.

Adelabu also urged enhanced collaboration between federal and state regulators in line with the Electricity Act 2023.

In addition, he proposed the appointment of a coordinating minister for energy to provide strategic oversight across key sectors, including power, gas, water resources, and the environment.

According to the minister, such an integrated approach would help boost thermal power generation through improved gas supply, optimise hydroelectric power development through better water resource management, and accelerate renewable energy deployment in a sustainable manner.

Adelabu also expressed gratitude to the president for the opportunity to serve in the administration, describing his tenure as one of the most significant chapters of his public life. (TheCable)