The Abuja Electricity Distribution Plc (AEDC) has issued a stark warning to several government bodies, including the Clerk to the National Assembly, the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and the Department of State Services (DSS), over an outstanding electricity debt totalling N3.416 billion.
In a disconnection notice, the AEDC has put these entities, along with the Presidential Villa and various Ministries, Departments, and Agencies (MDAs), on notice for a collective debt of N47.1 billion. The breakdown of the debt reveals that the Clerk to the National Assembly is accountable for N1,093,056,370, while the Nigeria Police Force has a debt of N1,383,222,250. Additionally, the EFCC and the DSS office in Abuja owe N291,297,171 and N648,628,431, respectively.
The AEDC has given these government bodies a 10-day ultimatum to settle their arrears or face a disconnection and subsequent blackout from 28 February 2024. The company has expressed its frustration, stating that previous attempts to recover the owed amounts have been unsuccessful.
The disconnection notice comes amid broader concerns about the financial sustainability of Nigeria’s electricity sector. The Nigerian Electricity Regulatory Commission (NERC) reported that the government spent N2.8 trillion to subsidise electricity consumption from 2015 to 2022 under the administration of former President Muhammadu Buhari. However, the current government led by President Bola Tinubu has signalled that it cannot continue to subsidise electricity due to the massive debts incurred.
The Minister of Power, Adebayo Adelabu, highlighted during a press conference in Abuja that Nigeria must transition to a cost-reflective tariff model, as the country owes generating businesses (GenCos) up to N1.3 trillion. He also mentioned that only N450 billion has been allocated for subsidies this year, despite the ministry requiring over N2 trillion.
Adelabu further stated that state governments would now have the autonomy to generate power independently for their respective states. He pointed out several challenges faced by the power sector, including six grid collapses between December 2023 and last week, caused by factors such as gas shortages, ageing infrastructure, insufficient capacity to evacuate generated power, and the destruction of power stations in the North-East geopolitical zone.
The minister also noted that the Transmission Commission of Nigeria (TCN) has over 100 abandoned projects due to discrepancies in contract figures caused by foreign exchange volatility. He emphasised that no new contracts would be awarded until all ongoing projects are completed.