The Minister of Power, Bayo Adelabu, has disclosed that ongoing reforms in Nigeria’s electricity sector have attracted more than $2 billion in fresh investments, signalling renewed investor confidence and improved financial performance across the industry.
Adelabu made this known on Thursday in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO). He noted that the reforms, alongside efforts to transition the sector towards full commercialisation, have significantly strengthened its financial outlook.
According to the minister, revenue in the power sector grew by 70 percent in 2024, while government liabilities declined by approximately N700 billion, reflecting enhanced efficiency and improved cost recovery mechanisms.
He also highlighted gains in generation capacity, which increased from 13 gigawatts to 14 gigawatts, with a peak generation of 5,801.44 megawatts recorded.
Adelabu attributed these developments to far-reaching reforms implemented under President Bola Tinubu’s Renewed Hope agenda, stating that the initiatives are beginning to yield tangible results across the electricity value chain.
He explained that the reforms—centred on policy overhaul, market liberalisation, and institutional strengthening—are positioning the sector for long-term sustainability, improved efficiency, and increased private sector participation. He described the transformation as a deliberate effort to build a viable and investor-friendly electricity market.
A key component of the reform programme, he said, is the Electricity Act 2023, which has decentralised the sector and enabled greater participation by state governments. This, he added, has led to the establishment of 16 state electricity markets, fostering competition and innovation.
The minister further noted that the newly introduced national integrated electricity policy—the first in over two decades—provides a unified framework for implementing the Act, improving coordination between federal and state authorities, and accelerating access to reliable and affordable power.
Addressing the metering gap, Adelabu said the government has launched a presidential metering initiative backed by N700 billion from the Federation Account Allocation Committee and an additional $500 million facility from the World Bank. He added that procurement processes are already underway for the nationwide deployment of millions of meters.
In addition, he revealed that Nigeria has successfully synchronised its national grid with those of other ECOWAS countries following a four-hour uninterrupted test run, an achievement he said demonstrates improved grid stability and readiness for regional electricity trade.
The minister also commended NELMCO for its role in stabilising the sector, noting that the agency has reduced inherited liabilities from N2.30 trillion to N146.76 billion and generated over N700 billion in savings for the federal government through verification and reconciliation processes.
He added that NELMCO has significantly cut ground rent claims from N644 billion to N41.8 billion and reduced post-privatisation liabilities owed by government institutions to electricity distribution companies by 45 percent.
Adelabu concluded that these developments have strengthened liquidity and boosted investor confidence in the Nigeria Electricity Supply Industry.
