The Minister of Power,Chief Adebayo Adelabu, on Tuesday reaffirmed the Federal Governments commitment to implementing a cost-reflective tariff in the electricity sector as a key step toward resolving the liquidity crisis in the industry.
Speaking at the Mission 300 Stakeholders Engagement meeting in Abuja, Adelabu disclosed that the government is exploring various options to settle the N4 trillion debt owed to power generation companies.
He noted that the debt had accumulated due to the governments continued inability to fully fund electricity subsidies.
Adelabu added that the government plans to phase out blanket subsidies in the sector and replace them with targeted support for vulnerable and low-income consumers.