President Bola Tinubu has intervened to halt the proposed increase in electricity tariff, emphasizing the need for a subsidy on nationwide power consumption, as disclosed by the Minister of Power, Adebayo Adelabu, during a Wednesday announcement.

Adelabu also revealed that the Federal Government is set to scrutinize the legality of the five-year extension granted to privatized power distribution and generation companies. He emphasized that the operating licenses for these firms should have expired on October 31, 2023.

In a press briefing in Abuja, the minister asserted his commitment to removing non-performing chief executives within agencies under the power ministry. He stated that if their lack of performance jeopardizes his position as minister, he would be quick to take action.

Addressing the call for a cost-reflective tariff, which could increase power charges, Adelabu explained, "The power sector is an industry that is very sensitive to any leader." He highlighted the government's ongoing subsidy on power and President Tinubu's directive to delay tariff adjustments until there is a consistent and incremental power supply.

Adelabu acknowledged the gap between the cost-reflective and allowed tariffs, with the government bridging this difference through subsidies. He pointed out the challenges this poses to liquidity, investments, and the overall constraints on the power sector. President Tinubu has maintained his stance against raising electricity rates despite the liquidity crisis.