307
By Daniel Adaji
The Minister of Power, Adebayo Adelabu has acknowledged the persistent lapses in Nigeria’s national grid and assured that the Federal Government is implementing sweeping reforms to ensure a stable and reliable electricity supply across the country.
Speaking at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” organized by the Nigeria Economic Summit Group (NESG) in Abuja on Monday, the minister said the government is aware of the “cost pressures faced by businesses as a result of inadequate and unreliable grid supply,” and is prioritizing strategic investments in infrastructure to stabilize power delivery.
According to him, the administration of President Bola Tinubu, under the Renewed Hope Agenda, is pursuing broad-based reforms to improve power supply, especially to industrial clusters in Lagos, Enugu, Port Harcourt, Kaduna, Kano, and Ajaokuta.
“We are implementing the Light Up Nigeria project which is a Federal Government initiative to boost industrialization by providing reliable electricity nationwide,” he said.
The project, led by Vice President Kashim Shettima, is already operational in the Agbara Industrial Hub in Lagos and Enugu State, with plans to expand to other locations.
He disclosed that similar private-led initiatives, such as the partnership between Konexa and Nigerian Breweries in Kaduna, are being evaluated for possible replication across the country.
“If successful, we plan to deploy these initiatives to other industries,” he stated, adding that the government is considering a “differential tariff or a time-of-use tariff for industries especially at off-peak hours” to enhance productivity and job creation.
Providing a broader policy context, the minister outlined the government’s “comprehensive, multi-pronged approach” to reposition the power sector for sustainability and growth.
The reforms, he said, cut across legislation, policy, infrastructure, energy transition, and local content development—each designed to “address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain.”
He described the enactment of the Electricity Act 2023 as a major milestone that devolves regulatory powers to states and promotes private sector participation.
“Since its passage, 15 states have received regulatory autonomy to establish subnational electricity markets with one fully operationalised,” he said, noting that the ministry is working to ensure alignment between the wholesale and retail markets.
On policy reforms, the minister disclosed that the Integrated National Electricity Policy—approved by the Federal Executive Council earlier this year—provides “a coherent roadmap for sustainable sector growth.” It is the first comprehensive framework of its kind in nearly two decades.
He also highlighted tariff reforms that have led to significant improvements in liquidity and investor confidence. “Industry revenue has increased by 70% to ₦1.7 trillion in 2024 compared to the previous year, and the revenue is expected to exceed ₦2 trillion for 2025,” he said. To stabilize the market, President Tinubu has approved a ₦4 trillion bond to clear verified debts owed to generation companies and gas suppliers.
In infrastructure development, the minister said the Presidential Power Initiative (PPI) has already delivered an additional 700MW in transmission capacity under its phase zero, while contracts for Phase One—expected to add 7,000MW—have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China.
He further noted that “generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the grid,” raising average generation to about 5,300MW in 2024 from 4,200MW in 2023.
On metering, the Federal Government has launched the Presidential Metering Initiative (PMI) to close the national gap and improve transparency. “₦700 billion has been secured from FAAC to deploy 1.1 million meters by the end of 2025, and 2 million annually over the next five years,” he said. This effort complements the 3.2 million meters being procured through the World Bank’s DISREP program.
The minister added that Nigeria’s energy transition drive is being supported by over $2 billion mobilized from bilateral and development finance partners, including the World Bank’s $750 million DARES program, the $500 million NSIA RIPLE platform, and a $190 million JICA fund. These interventions, he said, are accelerating renewable energy deployment and expanding reliable power to underserved communities and public institutions.
In capacity development, he announced the commissioning of new training and simulation facilities at the National Power Training Institute of Nigeria (NAPTIN), with additional support from development partners. A new agreement between the Rural Electrification Agency and Oando Clean Energy, he said, will also deliver a 1.2GW solar power project to boost sustainability.
“Our ultimate goal is to increase local content in the electricity value chain and ensure continuous capacity development to drive sustainability of the sector,” the minister emphasized.
He urged participants at the forum to provide “concrete, evidence-based policy recommendations” that would help attract investment and promote synergy between federal and state governments in developing subnational electricity markets.
“I encourage the NESG to consolidate the forum’s outcomes into a policy memo summarizing the key consensus points and proposed follow-up actions for continued collaboration with government,” he said.