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Nigeria Backs Local Manufacturers To Boost Energy Security And Economic Growth

 JKNM JKNMJuly 16, 2025 1312 Minutes read0
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By Ajibola Olaide, JKNewsMedia Reporter 

THE FEDERAL Government has unveiled a strategic shift in its electricity policy, declaring local content as a core driver of Nigeria’s power sector transformation.

Authorities will now prioritise indigenous manufacturers to accelerate economic growth, expand industrial capacity, and strengthen national energy security.

Speaking at the African Natural Resource and Energy Investment Summit (AFNIS 2025) in Abuja, Minister of Power Chief Adebayo Adelabu said Nigeria is aligning its electricity reforms with global trends in decentralisation, digitisation, and decarbonisation.

He stressed that the government’s agenda is firmly focused on embedding local expertise throughout the power value chain.

With Nigeria’s population exceeding 200 million, the demand for reliable electricity is surging. Adelabu said meeting this challenge requires a stable regulatory framework, sustained capital investment, and active domestic participation.

Under President Bola Ahmed Tinubu’s Renewed Hope Agenda, the federal government is building institutional capacity to reduce import dependence and develop homegrown technical skills and innovation.

The Electricity Act of 2023 has already empowered eleven states to take regulatory control of their subnational electricity markets, fostering investment competition and regional development.

Policy tools such as the National Integrated Electricity Policy (NIEP) and Integrated Resource Plan (IRP) now guide long-term sectoral planning.

Recent tariff reforms for Band A customers resulted in a 70 percent increase in revenue, adding ₦700 billion to the market and pushing total sector revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.

Adelabu highlighted major institutional and technical reforms.

The Independent System Operator, launched in April 2025, is designed to boost accountability and efficiency in electricity distribution.

Local content is being further advanced through on-ground initiatives such as the Energising Education Programme (EEP), which is adding 100 megawatts of clean power to federal universities and teaching hospitals.

The Distributed Access through Renewable Energy Scale-up (DARES) project targets decentralised electrification for over 17.5 million Nigerians.

Additionally, the Africa Mini-Grid Programme has secured $5.91 million in grants to support 23 decentralised power projects nationwide.

To guarantee quality and sustainability, new electricity meter test stations have been established in Kano and Benin.

The ministry said it is also partnering with the Solar Energy Manufacturers Alliance of Nigeria. At the capacity-building level, the National Power Training Institute of Nigeria (NAPTIN) now offers hands-on courses in solar PV and mini-grid design.

The NextGen Rescos Training Programme aims to prepare a new generation of leaders in rural electrification and mini-grid development.

Adelabu reaffirmed Nigeria’s commitment to achieving universal energy access and net-zero carbon emissions by 2060.

He said the government is also deepening regional integration through active participation in the West African Power Pool and the Economic Community of West African States (ECOWAS) Regional Electricity Market.

Tags
Electricity sector reformLocal manufacturingNigeria energy policy
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