Godswill Michael
The Federal Government has admitted persistent failures in Nigeria’s electricity grid but assured that reforms are underway to deliver reliable and predictable power, particularly for industrial and commercial users across the country.
Speaking at the Expert Forum on “Uninterrupted Power: The Industrial Imperative” in Abuja on Monday, the Minister of Power Adebayo Adelabu said the administration of President Bola Tinubu is implementing wide-ranging reforms under the Renewed Hope Agenda to stabilize supply and strengthen confidence in the power value chain.
“We are acutely aware of the cost pressures faced by businesses as a result of inadequate and unreliable grid supply,” the minister said.
“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.”
Grid Reforms and Industrial Power Projects
The minister highlighted the Light Up Nigeria project as a flagship initiative aimed at powering major industrial clusters nationwide. Led by Vice President Kashim Shettima and implemented through the Niger Delta Power Holding Company in partnership with private investors, the project seeks to guarantee uninterrupted electricity for industrial hubs in Lagos, Enugu, Port Harcourt, Kaduna, Kano, and Ajaokuta.
The programme, which has already taken off in the Agbara Industrial Hub and Enugu, is part of efforts to improve productivity, reduce energy costs, and enhance competitiveness for Nigerian industries.
He also cited ongoing private-led partnerships, such as the one between Konexa and Nigerian Breweries in Kaduna State, as models that could be replicated across other industrial zones.
To complement these efforts, the government is considering introducing differential or time-of-use tariffs for industries during off-peak hours to encourage higher energy offtake and promote job creation.
Legislative and Policy Overhaul
Providing policy background, the minister described the Electricity Act 2023 as a “major milestone” that devolves regulatory powers to states and empowers them to establish subnational electricity markets. So far, 15 states have obtained regulatory autonomy, with one already fully operational.
He added that the Ministry of Power has developed an Integrated National Electricity Policy, approved by the Federal Executive Council earlier this year. The policy provides the first comprehensive roadmap for the sector in nearly two decades and harmonizes existing frameworks to foster sustainable growth.
On commercialisation, the minister disclosed that reforms in tariff policy have improved supply reliability and boosted sector revenue.
“Industry revenue has increased by 70% to N1.7 trillion in 2024 compared to the previous year and is expected to exceed N2 trillion in 2025,” he said.
To stabilise the market, President Tinubu approved a N4 trillion bond to clear verified debts owed to generation companies (GenCos) and gas suppliers. A targeted subsidy framework is also being developed to protect vulnerable households while allowing a gradual move toward full cost-reflective tariffs.
Infrastructure Expansion and Metering
On infrastructure, the minister revealed that under the Presidential Power Initiative (PPI), Nigeria’s grid transmission capacity has increased by over 700 megawatts in Phase Zero. Contracts under Phase One—expected to add another 7,000MW—have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China.
Generation capacity has also improved following the rehabilitation of National Integrated Power Projects (NIPPs) and the integration of the 700MW Zungeru Hydropower Plant, pushing average generation to 5,300MW in 2024—up from 4,200MW in 2023.
To address the long-standing metering gap, the government launched the Presidential Metering Initiative (PMI), with N700 billion secured from FAAC to install 1.1 million meters by the end of 2025 and two million annually thereafter. This complements the 3.2 million meters being deployed through the World Bank’s DISREP program.
Energy Transition and Local Capacity
In furthering Nigeria’s energy transition goals, the government has mobilized over $2 billion in funding from international partners to expand access to clean and affordable power. The portfolio includes the $750 million World Bank DARES program for off-grid expansion, the $500 million NSIA RIPLE platform for renewable energy investments, and the $190 million JICA facility for complementary financing.
The minister added that new infrastructure and training facilities have been commissioned at the National Power Training Institute of Nigeria (NAPTIN) to strengthen technical manpower. Similarly, the Rural Electrification Agency (REA) has signed a landmark agreement with Oando Clean Energy for a 1.2GW solar project that incorporates a solar panel recycling line to promote sustainability.
Government’s Commitment to Reliable Power
The minister urged participants at the forum, organized by the Nigeria Economic Summit Group (NESG), to generate actionable recommendations that can drive further reforms, unlock capital, and enhance synergy among federal and state electricity markets.
“Our expectation is that the 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,” he said.
He commended NESG for sustaining dialogue around power sector reform and reaffirmed the Federal Government’s resolve to deliver uninterrupted and affordable electricity as a foundation for Nigeria’s industrial growth.
“Distinguished participants, I thank you for taking time out of your busy schedules to contribute your insights into this important dialogue, and I wish everyone fruitful deliberations,” he said.
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