The Federal Government says state governments will now be allowed to generate power independently to supply power to their states.
Minister of Power, Adebayo Adelabu, made this known in a press conference in Abuja on Wednesday.
He also said Nigeria cannot continue to subsidise electricity, adding that the nation must begin to move towards a cost-effective tariff model.
According to him, only 450 billion naira was budgeted for subsidy this year but the ministry needs over 2 trillion naira for subsidy.
He revealed that the country is currently indebted to the tune of 1.3 trillion naira to generating companies (GenCos) and 1.3 billion dollars owed gas companies.
