ADELABU LAUD INFORMA MARKET OVER CONSISTENCY, COMMITMENT IN DRIHING NIGERIA'S POWER SECTOR

"This forum, has remained a credible platform for connecting with global investors, exploring cutting-edge innovative technologies, and forging strategic public-private partnerships." Adebayo Adelabu, Minister of Power 

Nigeria's Minister of Power, Chief Adebayo Adelabu has commended the Informa Market for its consistency and commitment in organizing the Nigeria Energy Forum, 2025.

According to Minster Adelabu, "this forum, has remained a credible platform for connecting with global investors, exploring cutting-edge innovative technologies, and forging strategic public-private partnerships."

The Minister while speaking at the Nigeria Energy Forum 2025, with the theme, “Powering Nigeria through Investment, Innovation, and Partnership,” restated that the event "captures the essence of our collective aspiration to build a resilient, inclusive, and sustainable energy future. It speaks not only to the urgent need for capital infusion but also to the transformative role of collaboration, especially with the private sector in driving progress."

"In the Nigeria power sector, this theme reflects our unwavering commitment to harnessing strategic investments, deploying cutting-edge technologies, and fostering strong partnerships both local and global to deliver reliable, affordable, and cleaner energy for all Nigerians. A vision that aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, which emphasizes economic revitalization through enterprise, innovation, and shared prosperity." He said.

"As we begin this Forum, which is well aligned with our sector’s priorities of energy security, and inclusive growth, it is important to provide context on the broad policy reforms and initiatives shaping Nigeria’s power landscape to guide our engagement during this forum.

"Presently, 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." Adelabu revealed.

Speaking on legislation, "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. In this regard, we believe the active involvement of state governments, particularly in the off-grid segment is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency (REA), as well as the ongoing efforts to closely track the Distribution Company (DisCo) performance within their respective jurisdictions." Adelabu disclosed.

On 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.

• On 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.

• On sector performance monitoring and enforcement, the National Regulator and the State Regulatory Commissions are working in close synergy to drive performance improvement across the utilities. The sector continues to face challenges of under-capitalization among several Distribution Companies (DisCos) and a severe debt burden that has constrained their operational efficiency and service delivery over the years. As the tenure of their operational licenses approaches renewal, the government intends to introduce a minimum capital adequacy requirement as part of the license renewal process, to strengthen the financial health and liquidity position of the utilities.

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

He said; 

• 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.

• In addition, the unbundling of the Transmission Company of Nigeria, into two organisations: the Nigerian Independent System Operator (NISO), which manages the operation of Nigeria’s electricity grid and coordinates the electricity market, and the Transmission Service Provider (TSP), which owns, maintains, and expands the physical transmission infrastructure. This marks a long-awaited and critical structural reform in the power sector.

• Lastly, 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 revealed 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.

Speaking on local content and capacity development, 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 were delivered in partnership with development partners. At the recently concluded Nigerian Renewable Energy Innovation Forum (NREIF) 2025, we successfully activated agreements which will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity equivalent to almost 80 percent of our current national generation capacity. With this scale of renewable energy production coming online, Nigeria is not only positioned to achieve its domestic renewable energy and energy transition targets, but also to serve regional power markets which we recently started doing with export of Nigeria-made solar panels to Ghana.

11. As we commence today’s forum, let me once again emphasize to our investors, financiers, and innovators that Nigeria’s power sector remains open and ready for business more than ever before. We recognize that achieving the scale of investment required to transform the sector requires greater private sector participation across the entire value chain, particularly in the transmission segment. A useful reference is South Africa’s ambitious $25 billion transmission grid expansion initiative, which seeks private developers to deliver 14,000 kilometers of new power lines and connect over 59 GW of new capacity within the next 14 years. This is remarkable when compared to Nigeria’s Presidential Power Initiative (the Siemens project) valued at $2.3 billion.

12. In Nigeria today, we have over 10 GW of stranded generation capacity. Energy that could power industries, create jobs, and even support electricity exports to our neighboring countries through the regional power pool. We are therefore open to strategic partnerships to mobilize the necessary investments and unlock this potential. Our market fundamentals are improving, our policy environment is clear, and the national leadership is committed to creating the enabling conditions for long-term investment and innovation.

13. As we engage in conversations over the next two days, I urge us to think boldly, collaborate strategically, and invest with purpose. The opportunities before us are immense, not only to bridge our nation’s power gap, but to ignite a new era of industrial growth, technological innovation, and shared prosperity. Together, through sustained investment, forward-thinking innovation, and strong partnerships, we can power Nigeria’s journey toward a brighter, more resilient, and energy-secure future.

14. Thank you and God bless.