Nigeria to Introduce Pay-As-You-Go Electricity Payment After Clearing N4 Trillion Debt

Nigeria is set to introduce a pay-as-you-go electricity payment system after clearing a N4 trillion debt in the energy sector. The federal government plans to discontinue subsidies and implement this new model, as announced by Wale Edun, the Minister of Finance.

In the first half of the year, revenue allotted to subnational governments increased from N4 trillion to nearly N7 trillion, including unpaid statutory allocations. The government aims to shift towards complete deregulation after settling the debt owed to various investors.

This move is intended to avoid heavy financial burdens on the government from power purchase agreements. Additionally, Logistics Limited Electric Distribution Company (KEDCO) signed a memorandum of understanding for the construction of a 200 MW battery energy storage system, aiming to improve power supply and boost industrial productivity in Kaduna.