The Nigerian Federal Government announced on Thursday that liquidity in the country’s power sector has grown from N282 billion in 2015 to N900 billion at present. The disclosure was made by the Nigerian Electricity Regulatory Commission (NERC) during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy.
NERC Chairman, Sanusi Garba, revealed that mechanisms for enforcing payment discipline in the industry had been established, leading to significant improvements in Distribution Companies’ (Disco) revenue. He noted that the fiscal burden on the government had been reduced from N528 billion to N155 billion in 2022, preventing a potential subsidy of N665 billion without the implemented actions.
During the summit’s closing ceremony, Minister of Power Adebayo Adelabu appealed to sector operators and agencies to collaborate with the government. He emphasized the use of a “carrot and stick” approach, urging support for the government’s initiatives. Adelabu warned that those who fail to deliver would face consequences, indicating a readiness to take decisive action if necessary.
“I appealed to the people working with me, the agencies and public servants, that they should support us to ensure that we deliver and not disappoint Mr. President. And I say we are using the carrot and stick approach. We are using the carrot now by appealing to ourselves. If this does not work, we are going to wield the big stick,” the minister stated, emphasizing the government’s commitment to achieving the goals and targets of the power ministry.