President TINUBU’s electricity reforms yield $2billion investment

Friday, November 28, 2025 - The Federal Government’s power sector reforms are yielding measurable results, with over $2 billion in fresh capital flowing into the industry since the current administration took office, the Minister of Power, Chief Adebayo Adelabu, has said.

He made this known in Lagos during the PricewaterhouseCoopers (PwC’s) Annual Power and Utilities Roundtable 2025, with the theme, ‘Nigeria’s Multi-tier Electricity Market: Imperatives for Successful Evolution.’

At the heart of the power sector reform agenda is the long-standing metering crisis where, for instance, six million consumers have been metered, out of 13 million registered power consumers in Nigeria.

However, this leaves nearly half of electricity users on estimated billing, a system widely criticised as unreliable and exploitative.

To close this gap, Adelabu said the government has launched an aggressive metering rollout through two major initiatives: the Presidential Metering Initiative—backed by N700 billion to deploy 10 million meters over five years—and the $500 million District Sector Recovery Programme.

The later, according to him, will add another 3.45 million meters and introduce modern meter-data technologies for real-time monitoring. “Remote tracking of meters will improve collections, boost liquidity, and ensure that consumers pay only for what they use,” Adebola said.

The Minister also said beyond consumer-level reform, Nigeria is implementing deeper structural changes in how electricity is generated, sold, and regulated.

He stated that one of the most consequential shifts has been the decentralisation of the electricity market through the Electricity Act 2023, enabling state governments to independently generate, transmit and distribute power.

This has triggered the emergence of state-level electricity markets for the first time in history, allowing regions to design local energy solutions tailored to their economic needs.

Accompanying this shift, the Minister noted, is the development of a National Integrated Electricity Policy—approved in February 2025 after more than two decades without a sector-wide roadmap—defining the responsibilities of regulators, utilities, investors, technical operators and consumers across traditional and renewable energy sectors.

The commercialisation of the industry is also reshaping sector economics. For instance, in 2023, electricity revenue at the distribution level was about N1 trillion. By 2024, that figure had jumped to N1.7 trillion—a 70 per cent increase—with projections nearing N2.3 trillion by December 2025.

The Minister stressed that this increase is not the result of higher consumer tariffs but a strategic reallocation of spending away from diesel, petrol and generator costs toward grid-based supply.

He also said a series of technical milestones reinforces the sector’s stabilisation trajectory. He said, for instance, that installed generation capacity has risen from 13 to 14 gigawatts, and the country recorded an all-time peak generation of 5,801.44 MW, along with its highest-ever energy trading volume of 128,370.75 MWh.

Grid stability has also improved significantly after 12 system-collapse incidents in 2024. Only one collapse occurred in 2025, with power restored within hours.

Perhaps the most strategically important development is Nigeria’s first successful synchronisation of its transmission grid with the West African Power Pool.

After a failed 2007 test that lasted just seven minutes before collapse, the 2025 test held firm for over four hours, allowing seamless interconnection across 14 countries.

A final test slated to last four days could enable permanent grid integration, positioning Nigeria to export power to neighbouring countries using existing infrastructure—unlocking new sources of foreign exchange.

Still, Adelabu insists the reform journey is ongoing. He emphasised the need to strengthen regulatory capacity at both federal and state levels, refine consumer protection mechanisms, and deepen public-private partnerships.

“Nigeria’s transition to a multi-tier electricity market is not optional—it is a necessity,” he said, adding, “To build a reliable and competitive power sector, we must face our challenges directly and implement practical, realistic solutions.”

With rising investment, falling subsidy burdens, improved liquidity, growing generation capacity and state-driven market participation, Nigeria’s electricity landscape is shifting from a fragile state-owned model toward a scalable, commercially-sustainable power economy—one capable of driving industrial growth and supporting a modernising nation.

The Commissioner for Energy and Natural Resources, Lagos State, Engr. Abiodun Ogunleye, said the roundtable gathering will help shape the evolving relationship between Nigerian Electricity Regulatory Commission (NERC) and the emerging State Electricity Regulatory Commissions (SERC).

“Today, our key focus is the interaction and jurisdiction between federal and state regulatory frameworks. I believe most of us now recognise the importance of this new path, and for any who remain uncertain, I’m appealing for patience.

“Give us three years. If after that period we have not delivered meaningful impact at scale—if we have not seen visible progress—then bring forward whatever reforms or adjustments you wish. But for now, I’m asking: allow this model to run, allow it to mature, and allow it to demonstrate results.

“Yes, a multi-tier regulatory architecture will be complex and challenging at the outset. But Nigeria deserves the opportunity to try a different model—one that can break the entrenched pattern of inefficiency, stagnation, and darkness. We cannot keep doing the same thing year after year and expect transformation”, Ogunleye remarked.

Regional Senior Manager at PwC, Sam Abu, in his opening remarks, said: “We are here today because Nigeria’s power challenges are still real and unresolved. My hope is that we will one day reach a point where there is no longer a need to hold conversations about electricity—because the issues will have been solved.”

He said for nearly 15 years, this platform has convened the key players shaping Nigeria’s electricity landscape. “And today, more than ever, we are gathered not just to examine the challenges, but to chart real solutions. This year’s focus is timely, coming after the Electricity Act of 2023 — which opened a critical new chapter,” he stated.

This legislation, Abu said, represents one of the most transformative shifts: for the first time, states can build and regulate their own electricity markets. “We are moving from a single, centralised model to a dynamic, multi-layered energy ecosystem — one that can drive competition, spur innovation, and deliver meaningful service improvements,” he said.

This transition, Abu further stated, will require strong regulation, investment, and thoughtful coordination across all levels of government and industry. According to him, “If we execute this well, Nigeria stands to win immensely.”

Abu said PwC remains committed to working with governments, regulators, DisCos, investors, development partners, and private stakeholders to build a stronger electricity market.

“Nigeria’s power reform is not an instant event — it is a journey that requires vision, discipline, cooperation, and bold investment. Today’s roundtable is another step on that path, another opportunity to shape the energy future of over 200 million Nigerians — and ultimately, millions more across Africa,” he stated.