The Minister of power, Adebayo Adelabu, disclosed this vital information at the 2024 Nigeria Oil and Gas conference in Abuja that the Federal Government has revealed that Nigerians spent a staggering N16.5 trillion on fuel and generators in 2023. This amount is significantly higher than the revenue generated by the formal power sector, which stood at N1 trillion last year.
The minister, Adebayo Adelabu emphasized that the informal spendings on generators, diesel, and petrol totaled close to N20 trillion, highlighting the vast potential for revenue growth in the power sector. He noted that even a quarter of this amount would significantly boost the sector’s revenue, leading to improved power supply and reduced reliance on self-generation.
Power Sector Revenue Falls Short
The formal power sector’s revenue of N1 trillion in 2023 pales in comparison to the N16.5 trillion spent on fuel and generators by Nigerians. This disparity highlights the significant potential for growth in the power sector. Minister Adebayo Adelabu emphasized that harnessing this potential would lead to improved power supply and reduced reliance on self-generation.
The minister Adebayo Adelabu’s statement suggests that the power sector is missing out on significant revenue opportunities. By tapping into the informal spendings on generators, diesel, and petrol, the sector can generate additional revenue and improve power supply.
Informal Sector Spendings Dwarf Formal Revenue
The N16.5 trillion spent on fuel and generators in 2023 dwarfs the formal power sector’s revenue of N1 trillion. This significant disparity highlights the vast potential for growth in the power sector. Minister Adebayo Adelabu emphasized that harnessing this potential would lead to improved power supply and reduced reliance on self-generation.
The informal sector’s spendings on generators, diesel, and petrol demonstrate the significant demand for power generation. By tapping into this demand, the formal power sector can generate additional revenue and improve power supply.
Government Aims for Uninterrupted Power Supply
Minister Adebayo Adelabu announced that the government is working towards ensuring uninterrupted power supply in Nigeria. He stated that customers in the Band A category can expect continuous supply for up to 24 hours. The minister emphasized that harnessing the potential in the informal sector would lead to improved power supply and reduced reliance on self-generation.
The government’s aim for uninterrupted power supply is a welcome development for industries and households that rely heavily on self-generation. Improved power supply would reduce the financial burden of fuel and generator maintenance.
Power Generation Costs Compared
The minister Adebayo Adelabu compared the costs of power generation using different sources. He noted that the national grid is the cheapest source, with Band A customers paying N206/kWh. In contrast, companies using gas-powered generators pay N290/kWh, while those using petrol generators pay N450/kWh, and those using diesel generators pay upwards of N900/kWh.
The comparison highlights the significant cost savings offered by the national grid. By tapping into the informal sector’s spendings, the formal power sector can generate additional revenue and improve power supply, reducing the financial burden on industries and households.
Minister Adebayo Adelabu: Improved Power Supply to Boost Economic Growth
The government’s aim for uninterrupted power supply is expected to boost economic growth. Improved power supply would reduce the financial burden of fuel and generator maintenance, enabling industries and households to allocate resources more efficiently. Minister Adebayo Adelabu emphasized that harnessing the potential in the informal sector would lead to improved power supply and reduced reliance on self-generation.
The improved power supply would also attract foreign investment, create jobs, and stimulate economic growth. The government’s efforts to improve power supply are a welcome development for Nigeria’s economic growth prospects.
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