The minister of power, Bayo Adelabu, says ongoing reforms in Nigeria’s power sector have attracted over $2 billion in fresh investments.
Speaking in Abuja on Thursday during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO), Adelabu said the reforms have also significantly improved the sector’s financial outlook as efforts continue to transition it towards full commercialisation.
“The reforms have attracted over $2 billion in fresh investments into the sector, while ongoing efforts to transition the industry towards full commercialisation have significantly improved its financial outlook,” he said.
The minister noted that sector revenue rose by 70 percent in 2024, while government liabilities fell by approximately N700 billion, reflecting greater efficiency and stronger cost recovery.
He highlighted that generation capacity increased from 13 gigawatts to 14 gigawatts, with a peak generation achievement of 5,801.44 megawatts.
Adelabu said the federal government, under President Bola Tinubu’s Renewed Hope agenda, has implemented extensive reforms that are producing measurable results across the electricity value chain.
The reforms, he explained, focus on policy overhaul, market liberalisation, and institutional strengthening, creating a more sustainable and investor-friendly electricity market. A key component is the Electricity Act 2023, which decentralises the sector and enables greater participation at state levels, resulting in 16 state electricity markets fostering competition and innovation.
He added that the newly developed national integrated electricity policy — the first in over 20 years — provides a cohesive framework for implementing the act, enhancing federal-state coordination, and accelerating access to reliable and affordable power.
On the metering gap, Adelabu noted that the presidential metering initiative, supported by N700 billion from the federal account allocation committee (FAAC) and a $500 million World Bank facility, will deploy millions of meters nationwide.
The minister also said Nigeria’s national grid has been successfully synchronised with other ECOWAS countries following a four-hour uninterrupted test, demonstrating improved grid stability and readiness for regional power trade.
He commended NELMCO for reducing inherited liabilities from N2.30 trillion to N146.76 billion, generating over N700 billion in federal savings, cutting ground rent claims from N644 billion to N41.8 billion, and lowering post-privatisation debts owed to distribution companies by 45 percent — developments that have strengthened liquidity and bolstered investor confidence in the Nigeria Electricity Supply Industry (NESI).