Power transmission towers silhouetted against a sunset sky, highlighting Nigeria's energy sector.
By Onu Okorie
The Minister of Power Mr Adebayo Adelabu has disclosed that the
Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the Nigerian power sector for sustainability, efficiency, and growth.
He stated this during the ongoing Nigeria Economic Summit Group Industry Experts Forum in Abuja yesterday.
He explained that the approach spans critical pillars which include legislation, policy reforms, infrastructure development, energy transition and access expansion, and local content and capacity development with each designed to address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain.
On legislation, the enactment of the Electricity Act 2023 remains a major milestone, providing a robust governance and regulatory framework for the Nigerian Electricity Supply Industry (NESI). The Act devolves regulatory powers to the states, enables subnational markets, promotes competition, and empowers private participation across the value chain. This represents a clear shift towards a liberalized and investment-friendly electricity market. Since its passage, 15 states have received regulatory autonomy to establish subnational electricity markets with one fully operationalized. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market.
On the policy front: The Ministry has developed the Integrated National Electricity Policy, approved by the Federal Executive Council in February, with its accompanying Strategic Implementation Plan now being finalized to harmonize existing policies and provide a coherent roadmap for sustainable sector growth. This marks the first comprehensive, sector-wide policy framework in nearly two decades, and we deeply appreciate the industry experts and development partners many of whom are here today for their invaluable contributions in achieving this milestone.
On sector commercialization, the government is deepening power sector commercialization to strengthen revenue, liquidity, and investor confidence. Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70% to ₦1.7 Trillion in 2024 compared to previous year and the revenue is expected to exceed ₦2 Trillion for 2025. To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialization and viable industry.
In the area of infrastructure development, the Federal Government has introduced targeted national programs aimed at accelerating the viability, expansion, and modernization of the national grid.Under the phase zero of the Presidential Power Initiative (PPI), we enhanced transmission capacity, grid stability, and overall system reliability, with over 700MW of additional transmission capacity already achieved. Under Presidential Power Initiative (PPI) Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China. Financing arrangements are underway to support implementation. Phase one is planned to add 7000MW operational capacity to the grid.In parallel to the grid expansion, generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the grid. Collectively, these interventions have helped sustain an average generation capacity of approximately 5,300MW in 2024 up from 4,200MW recorded in 2023.Additionally, the Federal Government has operationalized the Presidential Metering Initiative (PMI) to close the national metering gap and improve sector viability. Already, ₦700 billion has been secured from FAAC to deploy 1.1 million meters by end of 2025, and 2 million annually over the next five years under the PMI. This complements the 3.2 million meters being procured through the World Bank’s DISREP program, positioning Nigeria to close the metering gap within five years and strengthen transparency and revenue assurance across the value chain.8. To advance Nigeria’s energy transition and access goals, the Federal Government is leveraging bilateral funding and development finance to de-risk investments and attract private participation for access expansion across underserved and unserved communities, educational institutions, healthcare facilities and government institutions. In the past two years, over $2 billion has been mobilized through key facilities, including the $750 million World Bank DARES program for off-grid and mini-grid expansion, the $500 million NSIA RIPLE platform to unlock private capital for renewables, and the $190 million JICA fund to complement DARES. Collectively, these interventions are accelerating renewable energy deployment and expanding reliable, affordable power across the country. Finally on local content and capacity development, the Ministry recently commissioned new training equipment, simulation infrastructure, and two workshop blocks with 104-room hostel accommodation at the National Power Training Institute of Nigeria (NAPTIN) to strengthen technical capacity across the sector. These facilities were delivered in partnership with development partners. Additionally, a landmark agreement was signed between the Rural Electrification Agency (REA) and Oando Clean Energy for a 1.2GW solar power project with a recycling line to promote sustainability in solar panel deployment. Our ultimate goal is to increase local content in the electricity value chain and ensure continuous capacity development to drive sustainability of the sector.10. As we engage in today’s forum, my expectation is that the deliberations will produce concrete, evidence-based policy recommendations to drive the reforms needed to unlock capital across the power value chain and incentivize upstream investment, while also identifying innovative funding models for sustainable sector growth. Equally important are actionable strategies to strengthen synergy between all levels of government in advancing state electricity markets. According to him, “I encourage the NESG to consolidate the forum’s outcomes into a policy memo summarizing the key consensus points and proposed follow-up actions for continued collaboration with government.”
