Bayo Adelabu, minister of power, says ongoing reforms in Nigeria’s electricity sector have attracted more than $2 billion in fresh investments.
Adelabu made the remarks in Abuja on Thursday at the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).
Speaking at the event, the minister said the reforms have attracted “over $2 billion in fresh investments into the sector, while ongoing efforts to transition the industry towards full commercialisation have significantly improved its financial outlook”.
He noted that the sector’s revenue rose by 70 percent in 2024, while government liabilities dropped by about N700 billion—an indication, he said, of improved efficiency and stronger cost recovery.
Adelabu also pointed to gains in power generation, with installed capacity increasing from 13 gigawatts to 14 gigawatts, alongside operational milestones such as a peak generation of 5,801.44 megawatts.
According to the minister, the federal government has introduced wide-ranging reforms under President Bola Tinubu’s Renewed Hope agenda, with measurable improvements now visible across the power sector. He added that these changes are beginning to yield tangible results throughout the electricity value chain.
He explained that the reform programme—anchored on policy overhaul, market liberalisation and institutional strengthening—is positioning the sector for long-term sustainability, greater efficiency and increased private sector participation. He described the process as a deliberate move to build a viable and investor-friendly electricity market.
A central pillar of the reforms, Adelabu said, is the Electricity Act 2023, which has decentralised the sector and opened up opportunities for subnational participation. This, he added, has already led to the creation of 16 state electricity markets, boosting competition and innovation.
The minister further noted that the newly introduced national integrated electricity policy—the first in over two decades—offers a unified framework for implementing the act, improving coordination between federal and state governments and accelerating access to reliable and affordable electricity.
On metering, Adelabu said the government is addressing the long-standing gap through the presidential metering initiative, backed by N700 billion from the federal account allocation committee (FAAC) and an additional $500 million facility from the World Bank. He added that procurement processes are already underway for the nationwide deployment of millions of meters.
As part of broader reforms, he disclosed that Nigeria has successfully synchronised its national grid with those of other ECOWAS countries following a four-hour uninterrupted test run. According to him, this demonstrates improved grid stability, stronger technical capacity and readiness for expanded regional electricity trade.
Adelabu also commended NELMCO for its stabilising role in the sector, noting that the agency has reduced inherited liabilities from N2.30 trillion to N146.76 billion and generated over N700 billion in savings for the federal government through thorough verification and reconciliation processes.
He added that NELMCO has cut ground rent claims from N644 billion to N41.8 billion and reduced post-privatisation liabilities owed by ministries, departments and agencies to electricity distribution companies by 45 percent.
The minister said these developments have strengthened liquidity and boosted investor confidence in the Nigeria Electricity Supply Industry (NESI).