Bayo Adelabu, minister of power, says power sector reforms have attracted over $2 billion fresh investments into the industry.
Adelabu spoke in Abuja on Thursday during the commissioning
of the new headquarters of the Nigeria Electricity Liability Management Company
(NELMCO).
Adelabu said 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”.
According to the minister, revenue in the sector rose by 70
percent in 2024, while government liabilities declined by about N700 billion,
indicating improved efficiency and stronger cost recovery.
He also highlighted progress in generation capacity, which
increased from 13 gigawatts to 14 gigawatts, alongside notable operational
achievements, including a peak generation of 5,801.44 megawatts.
According to the minister, the federal government has
implemented far-reaching reforms and recorded measurable gains in Nigeria’s
power sector under President Bola Tinubu’s Renewed Hope agenda.
He noted that the changes are beginning to produce tangible
results across the entire electricity value chain.
The minister explained that the reforms — focused on policy
overhaul, market liberalisation, and institutional strengthening — are
positioning the sector for sustainability, improved efficiency, and greater
private sector involvement.
He described the ongoing transformation as a strategic
effort to create a viable, investor-friendly electricity market.
A key element of the reform programme, he said, is the
Electricity Act 2023, which has decentralised the sector and enabled greater
participation at the subnational level.
Adelabu said this has already resulted in the establishment
of 16 state electricity markets, fostering competition and encouraging
innovation within the industry.
He added that the newly developed national integrated
electricity policy — the first in over two decades — provides a cohesive
framework for implementing the act, enhancing coordination between federal and
state governments, and accelerating access to reliable and affordable power.
The minister further said the government is tackling the
long-standing metering gap through the presidential metering initiative,
supported by N700 billion from the federal account allocation committee (FAAC)
and an additional $500 million facility from the World Bank.
Procurement processes, he said, are already underway to
deploy millions of meters nationwide.
As part of the broader reforms, Adelabu said Nigeria has
successfully synchronised its national grid with those of other ECOWAS
countries following a four-hour uninterrupted test run.
He noted that this achievement reflects improved grid
stability and technical capacity, as well as readiness for expanded regional
power 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 thorough verification and
reconciliation.
He added that NELMCO has cut ground rent claims from N644
billion to N41.8 billion and reduced post-privatisation liabilities owed by
ministries, departments, and agencies to electricity distribution companies by
45 percent.
According to the minister, the developments have
strengthened liquidity and boosted investor confidence in the Nigeria
Electricity Supply Industry (NESI).
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