Minister of Power, Chief Adebayo Adelabu, says Nigeria’s electricity sector reforms are already yielding tangible results, including the historic synchronization of the national grid with the wider West African network and the attraction of more than $2 billion in new investments.
Speaking Thursday at PwC’s Annual Power and Utilities Roundtable 2025 in Lagos, themed “Nigeria’s Multi-Tier Electricity Market: Imperatives for Successful Evolution,” Adelabu described the reforms as a decisive shift from a single national market to a “dynamic, multi-tier federation of markets,” enabled by the Electricity Act 2023.
“Under the Renewed Hope Agenda of President Bola Ahmed Tinubu, the Nigerian power sector has entered a new phase defined by decentralization, liberalization, and a move from a single national market to a multi-tier, multi-actor electricity ecosystem,” the Minister said.
He explained that this decentralized approach enhances efficiency, enables state-specific solutions, attracts investment, and improves reliability, citing early successes in Lagos and Enugu where subnational energy strategies are opening new opportunities for local development.
Landmark Achievements
Adelabu outlined several milestones underscoring the impact of government interventions. Nigeria achieved its first-ever successful synchronization with the West African Power Pool (WAPP), linking all 14 member countries for over four hours—a significant step toward a fully integrated regional electricity market.
Financial performance has also improved, with a 70 percent revenue increase in 2024 and a reduction of government liabilities by ₦700 billion, driven by efforts to move the industry toward full commercialization.
To expand electricity access, the Federal Government mobilized ₦700 billion from the Federation Account Allocation Committee (FAAC) to fund the Presidential Metering Initiative (PMI), designed to close the nation’s metering gap.
This is complemented by a $500 million DISREP fund from the World Bank, enabling the procurement and deployment of millions of new meters.
Operational capacity is rising, with installed generation capacity increasing from 13GW to 14GW. On March 4, 2025, Nigeria recorded an all-time generation peak of 5,801.44 MW and a maximum daily energy output of 128,370.75 MWh.
Other accomplishments include the activation of electricity markets in 15 states, the introduction of a National Integrated Electricity Policy after 24 years, and the attraction of more than $2 billion in fresh investments to expand power access nationwide.
Acknowledging persistent challenges such as regulatory overlap, aging infrastructure, and liquidity constraints, Adelabu assured stakeholders that the Ministry is addressing these issues through coordinated engagements, capacity building, and strengthened public-private partnerships.
Concluding his address, the Minister emphasized that the transition to a multi-tier electricity market “is not optional, it is necessary,” urging industry stakeholders to think boldly, challenge assumptions, and generate solutions to build a decentralized, competitive, and inclusive power sector for Nigeria.
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