The Minister of Power, Adebayo Adelabu, has announced that private power generation now costs approximately N750 per kilowatt-hour due to the high price of petrol. For those using diesel-powered generators, the cost is even higher at N950 per kilowatt-hour.
Adelabu emphasized that, despite customer dissatisfaction with the Band A tariff of N209 per kWh, it remains more affordable than generating power independently with petrol or diesel.
Speaking at a recent event in Lagos, he clarified that the increased revenue for power distribution companies is not an added burden on consumers but rather a reallocation of resources from fuel expenditures. “There’s a misconception in some media that this revenue is an additional burden on consumers. It’s simply a reallocation from what they previously spent on petrol and diesel to enjoy more reliable power supply,” he stated.
The minister highlighted that in 2023, the power sector generated N1 trillion in revenue, while N16.5 trillion was spent on petrol and diesel for generators. He noted that with improved supply stability, many consumers no longer need to spend on fuel.
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“For a kilowatt-hour generated using a petrol generator, at the current rate of N1,000 per litre, it costs about N750, while diesel remains around N915. So, consumers should recognize the value they receive,” he said.
Adelabu urged electricity users to support the distribution companies (Discos) to ensure the continuation of reforms in the sector, which would prevent a return to reliance on fuel generators. He also reiterated his commitment to increasing power generation to 6,000 megawatts by the end of the year, though he acknowledged that ongoing grid failures could hinder this goal.
