Would you like to receive notifications on latest updates of the following headlines?

Private power supply costs N750/kWh- Adelabu

POSTED ON October 21, 2024 •   Breaking News      BY Abiodun Saheed Omodara
Minister of Power, Adebayo Adelabu l Credit: @BayoAdelabu l Source: X

The Minister of Power, Adebayo Adelabu, has revealed that generating electricity using petrol now costs private entities up to N750 per kilowatt-hour (kWh) due to the soaring price of petrol.

For those using diesel-powered engines, the cost rises even higher, reaching N950 per kWh.

At a recent event in Lagos, Adelabu highlighted that these figures far exceed the N209/kWh tariff paid by Band A electricity customers, underscoring that self-generation is significantly more expensive than grid-supplied power.

He emphasized that while some customers have expressed dissatisfaction with the Band A tariff, they are still paying less than they would if relying on petrol or diesel generators.

Adelabu also addressed recent criticisms from the media, which described the rising revenues of power distribution companies (Discos) as an additional burden on consumers. He clarified that the increased revenue is not an extra financial load but rather a shift in spending.

“There is a section of the media saying this revenue is an additional burden on consumers. No, it is not. It is simply a reallocation of resources from what they previously spent on petrol and diesel. Now, they are paying for a stable power supply,” he explained.

The minister noted that in 2023, while the power sector generated N1 trillion in revenue, Nigerians spent a staggering N16.5 trillion on petrol and diesel to run generators.

He argued that with a more reliable electricity supply, households and businesses are spending less on fuel.

“Today, with the cost of petrol at N1,000 per litre, generating a kilowatt-hour of electricity using a petrol generator costs about N750, and for diesel, it’s around N950,” he said. “Consumers now have the option to pay N209 for stable grid electricity, which is far more economical.”

Adelabu compared the situation to a consumer choosing between two options, saying: “Power consumers are like a bride who has experienced two matrimonies. If they are honest, they know which husband to stay with.”

He urged electricity consumers to support the ongoing reforms in the power sector and work with Discos to maintain the current improvements and avoid reverting to costly fuel-powered generators.

The minister also reaffirmed his commitment to raising Nigeria’s power generation capacity to 6,000 megawatts by the end of the year, calling for continued consumer support as the sector undergoes commercialization to attract investment.

READ ALSO
FG commends Ghana for rescuing 219 trafficked Nigerians from cybercrime
BY Abiodun Saheed Omodara April 25, 2025 0

ABUJA, Nigeria - The federal government has praised the Ghanaian authorities for rescuing at least 2...

READ ALSO
Tinubu meets security chiefs, Calls for swift action against ongoing violence
BY Abiodun Saheed Omodara April 24, 2025 0

ABUJA, Nigeria - President Bola Ahmed Tinubu has called for an immediate end to the ongoing violence...

READ ALSO
Ogun shuts  four companies for environmental violations
BY Abiodun Saheed Omodara April 24, 2025 0

OGUN, Nigeria (NAN) - The Ogun state government, via its Environmental Protection Agency (OGEPA), ha...

READ ALSO
Ginger farmers lament uncertainty ahead of 2025 planting season amid seedling shortages
BY Abiodun Saheed Omodara April 22, 2025 0

ABUJA, Nigeria - Some ginger farmers in the Bwari Area Council of the Federal Capital Territory (FCT...

READ ALSO
Senator Jimoh Ibrahim Joins Cambridge Senate
BY Abiodun Saheed Omodara April 21, 2025 0

Senator Jimoh Ibrahim has joined the University of Cambridge Senate in the UK.  He is set to p...

READ ALSO
Kano secures $10bn investment for renewable energy, minerals in partnership with Morocco
BY Abiodun Saheed Omodara April 21, 2025 0

KANO, Nigeria (NAN) - The government of Kano state has announced that it will secure more than $10 b...

READ ALSO
Tinubu calls for unity and resilience amidst National insecurity
BY Abiodun Saheed Omodara April 19, 2025 0

ABUJA, Nigeria - President Bola Ahmed Tinubu on Friday reaffirmed his command to the Armed Forces to...

READ ALSO
Local petrol production soars 670% as Nigeria cuts PMS imports - NMDPRA
BY Abiodun Saheed Omodara April 16, 2025 0

ABUJA, Nigeria - The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has a...

OUR CHANNELS:

FG urges IMF, World Bank to bolster economic reforms in sub-saharan Africa
BY Abiodun Saheed Omodara April 24, 2025 0

Finance Minister Wale Edun has emphasized the need for increased global assistance to reform economi...


LASG short 66,000 healthcare practitioners, threat to quality services delivery
BY Abiodun Saheed Omodara April 24, 2025 0

LAGOS, Nigeria - The Lagos State Government is grappling with a significant shortage of medical prac...


Pope Francis to be buried April 26
BY Abiodun Saheed Omodara April 24, 2025 0

Pope Francis’s funeral will be held on Saturday, the Vatican announced Tuesday, as world leade...


2face get appointment as technical adviser to Benue Govt.
BY Abiodun Saheed Omodara April 25, 2025 0

The Governor of Benue State, Hyacinth Alia    has appointed music legend, Innocent Idibia...


Nigeria's Economic Reforms Boost Sovereign Credit Profile - IMF
BY Abiodun Saheed Omodara April 23, 2025 0

The Assistant Director for Global Markets at the International Monetary Fund (IMF), Jason Wu,  ...


Six dead in Okene Accident: Akpoti-Uduaghan Urges Immediate Road Safety Reforms
BY Abiodun Saheed Omodara April 23, 2025 0

KOGI, Nigeria - Following a tragic auto accident in Okene, Kogi State, which resulted in the loss of...


Plateau NBA expresses outrage over violence, urges FG to protect citizens
BY Abiodun Saheed Omodara April 23, 2025 0

PLATEAU, Nigeria - Due to the assaults and homicides occurring in Plateau State by alleged Fulani mi...


LASG reports over 517,000 traffic violations amid enhanced road safety measures
BY Abiodun Saheed Omodara April 24, 2025 0

LAGOS, Nigeria - The Lagos State Government on Tuesday revealed that from May 2024 to March 2025, mo...


Police Inspector Dies by Suicide in Port Harcourt
BY Abiodun Saheed Omodara April 24, 2025 0

RIVERS, Nigeria - A Police Inspector identified as Maxwell Zabu, who was attached to a former Chairm...


Tinubu lauds ECOWAS for regional integration, economic progress at golden jubilee
BY Abiodun Saheed Omodara April 23, 2025 0

President Bola Tinubu has praised the Economic Community of West African States (ECOWAS) for promoti...


More Articles

Load more...

Menu