Nigeria’s Minister of Power, Chief Adebayo Adelabu, has announced major reforms and investments designed to transform the nation’s electricity landscape, boost industrial power supply, and sustain economic competitiveness under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Speaking at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organized by the Nigerian Economic Summit Group (NESG) on Monday at the Transcorp Hilton, Abuja, Adelabu said the Federal Government is implementing a multi-pronged strategy focused on legislation, infrastructure development, policy reform, and private sector participation to deliver stable, reliable, and affordable electricity across the country.
FG’s Industrial Power Push: Light Up Nigeria Project
Highlighting the administration’s industrialization efforts, Adelabu said the “Light Up Nigeria” initiative, led by Vice President Kashim Shettima and implemented in collaboration with the Niger Delta Power Holding Company (NDPHC) and private partners, is targeting industrial clusters in Lagos, Enugu, Port Harcourt, Kaduna, Kano, and Ajaokuta.
He noted that the initiative has already taken off in Agbara (Lagos State) and Enugu, with plans to replicate similar successes nationwide.
The Minister also disclosed that the government is considering differential or time-of-use tariffs for industries to encourage higher energy offtake during off-peak hours, boost productivity, and create jobs.
Reforms Driving a Sustainable Power Market
Adelabu emphasized that the Electricity Act 2023 marked a “major milestone” in Nigeria’s power sector, as it devolves regulatory authority to states, enables subnational electricity markets, and promotes competition.
“So far, 15 states have received regulatory autonomy, with one already fully operational,” he said, adding that the Ministry is working to ensure strong alignment between the wholesale and retail electricity markets.
He further announced that the Integrated National Electricity Policy and Strategic Implementation Plan, approved by the Federal Executive Council in February, provides the first comprehensive power sector roadmap in nearly two decades.
Power Sector Revenue Rises 70%
On commercialization, Adelabu revealed that tariff reforms have improved supply reliability and increased industry revenue to ₦1.7 trillion in 2024, a 70% rise from the previous year.
“We project revenues to exceed ₦2 trillion in 2025,” he stated.
To stabilize the market, President Tinubu has approved a ₦4 trillion bond to offset verified debts owed to generation companies (GenCos) and gas suppliers. A new targeted subsidy framework is also being developed to protect vulnerable households while ensuring commercial viability.
Infrastructure Expansion: 7,000MW and 5,300MW Targets
Adelabu disclosed that under Phase Zero of the Presidential Power Initiative (PPI), over 700MW of new transmission capacity has been achieved, enhancing grid stability.
Contracts for Phase One have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, with financing arrangements underway to add 7,000MW to the national grid.
Generation capacity has also improved, with average daily output rising to 5,300MW in 2024, up from 4,200MW in 2023. This includes the rehabilitation of NIPP plants (adding 345MW) and the successful integration of the 700MW Zungeru Hydropower Plant.
Presidential Metering Initiative: Closing the Gap
To enhance transparency and revenue assurance, Adelabu said the Presidential Metering Initiative (PMI) aims to close Nigeria’s metering gap within five years.
Already, ₦700 billion from FAAC has been secured to deploy 1.1 million meters by end of 2025, and 2 million meters annually thereafter, complementing the 3.2 million meters under the World Bank’s DISREP program.
Energy Transition and Renewable Investments
The Federal Government, according to Adelabu, is mobilizing over $2 billion in international funding to support off-grid, mini-grid, and renewable energy projects, including:
$750 million World Bank DARES program
$500 million NSIA RIPLE platform
$190 million JICA support fund
These programs, he said, will accelerate energy access to underserved communities, schools, and healthcare institutions while promoting renewable energy adoption.
Local Content and Capacity Building
Adelabu also announced new training and infrastructure investments at the National Power Training Institute of Nigeria (NAPTIN), including simulation equipment, workshops, and a 104-room hostel.
He highlighted a 1.2GW solar power partnership between the Rural Electrification Agency (REA) and Oando Clean Energy, which includes a solar panel recycling line to promote sustainability.
Call for Actionable Policy Outcomes
The Minister urged participants at the forum to produce evidence-based recommendations that will unlock capital, drive upstream investments, and foster synergy between federal and state electricity markets.
“I encourage the NESG to consolidate today’s outcomes into a policy memo for continued collaboration with government,” Adelabu concluded
