ADELABU, EXPERTS DELIBERATE ON MOVE FOR VIABLE, SUSTAINABLE POWER SECTOR

Chief Adebayo Adelabu 
Nigeria's Minister of Power 

"The Federal Government, as part of the Renewed Hope Agenda of President Bola Ahmed Tinubu is intensifying broad-based reforms across the power sector value chain to improve supply especially to the industrial clusters in Lagos, Enugu, Port-Harcourt, Kaduna, Kano, Ajaokuta, etc." Minister of Power, Adelabu says.

 

Nigeria's Minister of Power, Chief Adebayo Adelabu has commended the Nigeria Economic Summit Group (NESG) for its consistency and commitment in shaping national discourse, generating practical policy recommendations, and driving reforms across key sectors of the nation's economy.

Adelabu gave this commendation at a gathering of experts on the theme; "Uninterrupted Power: The Industrial Imperative” which sector professionals, policymakers, and industry thought leaders to reflect on pathways towards a viable and a sustainable Nigerian power sector. 

The Minister who expressed his pleasure at being present at the event, noted that the the forum was particularly timely, stressing that the Federal Government, as part of the Renewed Hope Agenda of President Bola Ahmed Tinubu is intensifying broad-based reforms across the power sector value chain to improve supply especially to the industrial clusters in Lagos, Enugu, Port-Harcourt, Kaduna, Kano, Ajaokuta, etc.

"We are acutely aware of the cost pressures faced by businesses as a result of inadequate and unreliable grid supply. This is why the government is prioritizing strategic investments in key infrastructure to ensure stable and predictable power delivery, particularly to commercial and industrial customers who are willing to pay for availability, reliability, and quality of supply." He stated 

"For emphasis, we are implementing the Light Up Nigeria project which is a Federal Government initiative to boost industrialization by providing reliable electricity nationwide. Led by Vice President Kashim Shettima and implemented with the Niger Delta Power Holding Company and private partners, it aims to deliver stable power to key industrial clusters. The initiative which has already been launched in Agbara Industrial hub in Lagos State and Enugu State.

He revealed that, "Furthermore, there are ongoing private-led initiatives like the one in Kaduna between Konexa and the Nigeria Breweries in Kaduna State. If successful, we plan to deploy these initiatives to other industries. In addition to scaling up supply to the industrial clusters, we a recognize the potential need for a differential tariff or a time-of-use tariff for industries especially at off-peak hours of the grid to encourage increased energy offtake, improved productivity in the economy, and increased job opportunities for our teaming population.

He noted that the forum aligns with the federal government's national aspiration for energy security and economic competitiveness, stressing that, "currently, the Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the Nigerian power sector for sustainability, efficiency, and growth. This approach spans critical pillars which include legislation, policy reforms, infrastructure development, energy transition and access expansion, and local content and capacity development with each designed to address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain." 

Speaking on legislation, Adelabu revealed that "the enactment of the Electricity Act 2023 remains a major milestone, providing a robust governance and regulatory framework for the Nigerian Electricity Supply Industry (NESI). The Act devolves regulatory powers to the states, enables subnational markets, promotes competition, and empowers private participation across the value chain. This represents a clear shift towards a liberalized and investment-friendly electricity market. Since its passage, 15 states have received regulatory autonomy to establish subnational electricity markets with one fully operationalized. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market.

The policy front:

• The Ministry has developed the Integrated National Electricity Policy, approved by the Federal Executive Council in February, with its accompanying Strategic Implementation Plan now being finalized to harmonize existing policies and provide a coherent roadmap for sustainable sector growth. This marks the first comprehensive, sector-wide policy framework in nearly two decades, and we deeply appreciate the industry experts and development partners many of whom are here today for their invaluable contributions in achieving this milestone.

• Sector commercialization, the government is deepening power sector commercialization to strengthen revenue, liquidity, and investor confidence. Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70% to ₦1.7 Trillion in 2024 compared to previous year and the revenue is expected to exceed ₦2 Trillion for 2025. To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialization and viable industry.

In the area of infrastructure development, the Federal Government has introduced targeted national programs aimed at accelerating the viability, expansion, and modernization of the national grid.

• Under the phase zero of the Presidential Power Initiative (PPI), we enhanced transmission capacity, grid stability, and overall system reliability, with over 700MW of additional transmission capacity already achieved. Under Presidential Power Initiative (PPI) Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China. Financing arrangements are underway to support implementation. Phase one is planned to add 7000MW operational capacity to the grid.

• In parallel to the grid expansion, 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. Collectively, these interventions have helped sustain an average generation capacity of approximately 5,300MW in 2024 up from 4,200MW recorded in 2023.

• Additionally, the Federal Government has operationalized the Presidential Metering Initiative (PMI) to close the national metering gap and improve sector viability. Already, ₦700 billion has been secured from FAAC to deploy 1.1 million meters by end of 2025, and 2 million annually over the next five years under the PMI. This complements the 3.2 million meters being procured through the World Bank’s DISREP program, positioning Nigeria to close the metering gap within five years and strengthen transparency and revenue assurance across the value chain.

The Minister disclosed that, "to advance Nigeria’s energy transition and access goals, the Federal Government is leveraging bilateral funding and development finance to de-risk investments and attract private participation for access expansion across underserved and unserved communities, educational institutions, healthcare facilities and government institutions. In the past two years, over $2 billion has been mobilized through key facilities, including the $750 million World Bank DARES program for off-grid and mini-grid expansion, the $500 million NSIA RIPLE platform to unlock private capital for renewables, and the $190 million JICA fund to complement DARES. Collectively, these interventions are accelerating renewable energy deployment and expanding reliable, affordable power across the country.

Addressing issues on local content and capacity development, Chief Adebayo Adelabu revealed that the Ministry recently commissioned new training equipment, simulation infrastructure, and two workshop blocks with 104-room hostel accommodation at the National Power Training Institute of Nigeria (NAPTIN) to strengthen technical capacity across the sector. 

"These facilities," according to Chief Adelabu, "were delivered in partnership with development partners. Additionally, a landmark agreement was signed between the Rural Electrification Agency (REA) and Oando Clean Energy for a 1.2GW solar power project with a recycling line to promote sustainability in solar panel deployment. Our ultimate goal is to increase local content in the electricity value chain and ensure continuous capacity development to drive sustainability of the sector.

In his conclusion, Adelabu expressed his expectation to include that the forum's deliberations will produce concrete, evidence-based policy recommendations to drive the reforms needed to unlock capital across the power value chain and incentivize upstream investment, while also identifying innovative funding models for sustainable sector growth. Equally important are actionable strategies to strengthen synergy between all levels of government in advancing state electricity markets. 

He encouraged 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.