In a significant development announced on Thursday, the Federal Government revealed that Nigeria’s power sector has experienced a substantial boost in liquidity, soaring from N282 billion in 2015 to the current figure of N900 billion. This positive shift was highlighted during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Policy, as reported by Infostride News.
Liquidity, as defined in financial terms, pertains to the ease and efficiency with which an asset or security can be converted into ready cash without impacting its market price. The most liquid asset of all is cash itself.
During a presentation at the event, Sanusi Garba, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), emphasized, “Liquidity in the market has moved from N282 billion in 2015 to N900 billion now. We have also created a mechanism for enforcing payment discipline in the industry. This has seen Disco revenue improve greatly.”

Garba further highlighted the positive impact of these measures, stating, “We have reduced the fiscal burden on the government from N528 billion to N155 billion in 2022. Without our actions, the subsidy would have been in the region of N665 billion.”
Adding to this, the Minister of Power, Adebayo Adelabu, spoke at the closing ceremony of the summit, urging collaboration between government and sector operators. He stressed that those who fail to deliver on their responsibilities would face consequences.
“I appealed to the people working with me, the agencies, and public servants, that they should support us to ensure that we deliver and not disappoint Mr. President. And I say we are using the carrot and stick approach. We are using the carrot now by appealing to ourselves,” Adelabu stated.
However, he also issued a warning, stating, “If this does not work, we are going to wield the big stick. Before I’m shown the way out, of course, a lot of people will also leave before me. So this (summit) is just a way of preparing ourselves to achieve the mandate and target of the power ministry.”
The Minister’s emphasis on accountability and performance underscores the government’s commitment to achieving sustainable improvements in the power sector. The encouraging increase in liquidity and reduction in financial burdens signal positive strides in the ongoing efforts to enhance the efficiency and reliability of Nigeria’s electricity industry. Infostride News continues to monitor and report on developments in this crucial sector.
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