By Ajibola Olaide, JKNewsMedia Reporter
STRATEGIC REFORMS within Nigeria’s power sector have gathered new momentum as the Federal Government (FG) intensifies efforts to deliver stable and reliable electricity supply across industrial clusters and households nationwide.
Minister of Power, Adebayo Adelabu, stated that the current reforms under the Renewed Hope Agenda of President Bola Tinubu are anchored on investment, policy coherence, and accountability across the entire power value chain.
Addressing participants at the 31st Nigerian Economic Summit in Abuja, the Minister said the government remains committed to building a viable and sustainable power industry that will drive national productivity and industrial growth.
He noted that the forum, themed “Uninterrupted Power: The Industrial Imperative,” was timely, as it provided a platform for sector experts, policymakers, and stakeholders to examine practical pathways to achieving energy reliability.
Adelabu commended the Nigeria Economic Summit Group (NESG) for maintaining consistency in organising the annual summit, describing it as a credible platform that continues to shape national discourse, generate pragmatic policy recommendations, and support reforms across key economic sectors.
He said the ongoing power sector reforms reflect the government’s recognition of the cost pressures faced by industries as a result of inadequate and unreliable grid supply.
“The government is prioritising strategic investments in key infrastructure to ensure stable and predictable power delivery, particularly to commercial and industrial customers who are willing to pay for availability, reliability, and quality of supply,” Adelabu explained.
He highlighted the Light Up Nigeria Project, led by Vice President Kashim Shettima in partnership with the Niger Delta Power Holding Company (NDPHC) and private investors, as a flagship initiative designed to boost industrialisation by providing stable electricity to major clusters.
The programme has already commenced in the Agbara Industrial Hub in Lagos and in Enugu State.
The Minister also pointed to other private-led initiatives such as the collaboration between Konexa and Nigerian Breweries in Kaduna State, noting that successful outcomes from these models would be replicated across other industrial zones.
He added that the government is exploring differential and time-of-use tariffs to encourage industries to consume more energy during off-peak periods, a move expected to enhance productivity and create more jobs.
Adelabu outlined that the FG is adopting a comprehensive and multi-pronged approach to reposition the power sector for sustainability and efficiency.
The reform framework, he said, spans legislation, policy reform, infrastructure development, energy transition and access expansion, as well as local content and capacity building.
According to him, the Electricity Act 2023 represents a major milestone, providing a robust governance structure for the Nigerian Electricity Supply Industry (NESI) and devolving regulatory powers to states.
“Fifteen states have received regulatory autonomy to establish subnational electricity markets, with one fully operationalised.
“We are actively working with these states to ensure strong alignment between the wholesale and retail markets,” he stated.
On the policy front, the Minister revealed that the Integrated National Electricity Policy, approved by the Federal Executive Council in February, was the first comprehensive framework for the sector in nearly two decades.
The accompanying Strategic Implementation Plan, now being finalised, will harmonise existing initiatives and provide a clear roadmap for sustainable growth.
He disclosed that under tariff reforms, the government’s decision to introduce cost-reflective tariffs for select consumers has strengthened market liquidity, enhanced supply reliability, and improved revenue generation.
The Minister said power sector revenues increased by 70 per cent to N1.7 trillion in 2024 and are projected to surpass ₦2 trillion in 2025.
To stabilise the market, President Tinubu has approved a N4 trillion bond to clear verified debts owed to generation companies (GenCos) and gas suppliers.
Additionally, a targeted subsidy framework is being developed to protect vulnerable households and ensure sustainable commercialisation of the industry.
Adelabu said major strides have been made in infrastructure development through targeted national programmes designed to expand and modernise the national grid.
Under Phase Zero of the Presidential Power Initiative (PPI), transmission capacity has been enhanced by more than 700MW, while overall system reliability has improved.
He confirmed that Phase One of the PPI will add 7,000MW of operational capacity through contracts already signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements underway.
He added that generation capacity is being expanded through the rehabilitation of existing Niger Delta Power Plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the national grid.
As a result, the nation’s average generation capacity increased to approximately 5,300MW in 2024, up from 4,200MW recorded in 2023.
The Minister further noted the operationalisation of the Presidential Metering Initiative (PMI) to close the national metering gap and strengthen financial viability within the sector.
He said N700 billion has been secured from the Federation Account Allocation Committee (FAAC) to deploy 1.1 million meters by the end of 2025 and two million meters annually over the next five years.
This initiative, complemented by the World Bank’s DISREP Programme, which is providing an additional 3.2 million meters, is expected to close Nigeria’s metering gap within five years.
To accelerate the country’s energy transition and power access goals, the Federal Government is leveraging bilateral and development finance facilities to attract private investment for off-grid expansion, especially in underserved communities, schools, health facilities, and government institutions.
Adelabu further noted that over $2 billion has been mobilised through key instruments, including the $750 million World Bank DARES Programme, the $500 million NSIA RIPLE Platform, and the $190 million JICA Fund.
He said these interventions are collectively expanding renewable energy deployment and ensuring affordable, sustainable electricity nationwide.
On capacity building and local content, the Minister revealed that the government recently commissioned modern training and simulation facilities, as well as two workshop blocks and a 104-room hostel at the National Power Training Institute of Nigeria (NAPTIN).
These facilities were delivered with support from development partners to strengthen human capital within the electricity industry.
He added that the Rural Electrification Agency (REA) has signed a landmark agreement with Oando Clean Energy to develop a 1.2GW solar power project with an integrated recycling line for solar panels to promote sustainability and circular economy principles.
“Our ultimate goal is to increase local content across the electricity value chain and ensure continuous capacity development to drive the sector’s sustainability,” Adelabu stated.
He urged participants at the summit to propose evidence-based policy recommendations that can unlock capital across the power value chain and strengthen collaboration among the federal, state, and private sectors.
“My expectation is that the deliberations here will produce actionable strategies to incentivise upstream investment, strengthen synergy across all tiers of government, and provide innovative funding models for sustainable growth,” he said.
Adelabu further encouraged the NESG to consolidate the forum’s conclusions into a detailed policy memo summarising consensus points and proposed follow-up actions for continued engagement with government agencies.
Expressing appreciation to participants for their dedication, he reaffirmed the Federal Government’s resolve to ensure that the Nigerian power sector becomes sustainable, efficient, and globally competitive.
“I thank you for taking time out of your busy schedules to contribute your insights to this vital dialogue. I wish everyone fruitful deliberations,” he said.
He noted that the 31st Nigerian Economic Summit, which convened sector experts, policymakers, and industry leaders, continues to serve as a strategic platform for collaboration and innovation in advancing Nigeria’s development agenda under the Renewed Hope vision.
