Nigeria Cuts Power Subsidies by 35%

Nigeria has cut electricity subsidies by 35% after raising tariffs last year. This move, according to Power Minister Adebayo Adelabu, is helping ease the country’s financial struggles, but Nigeria’s power problems aren’t over.

Power Struggles

Nigeria’s power sector has a lot of issues—bad grids, gas shortages, and too much debt. Most Nigerians depend on expensive generators to get electricity. Last year, the government stopped giving subsidies to big users like businesses. This change brought in an extra 700 billion naira—70% more revenue.

Debt Still Looms

Even with the tariff increase, Nigeria’s power sector is still deeply in debt, with over 4 trillion naira ($2.5 billion) owed. Some power plants are even talking about shutting down due to non-payment. The government plans to pay off half of this debt this year through budget funds and promissory notes.