KEY POINTS
- Power sector reforms attracted $2 billion investment and reduced liabilities to about N146 billion
- Electricity Act 2023 enabled decentralisation, activation of 16 state markets, and improved sector revenue
- Government advancing metering rollout, increasing generation capacity, and launching regulatory coordination forum
The Federal Government has announced that ongoing reforms in Nigeria’s power sector have attracted about $2 billion in fresh investments while reducing sector liabilities to approximately N146 billion. The Minister of Power, Adebayo Adelabu, disclosed this in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).
According to the minister, the reforms are anchored on policy overhaul, market liberalisation, and institutional strengthening aimed at improving sustainability, efficiency, and private sector participation. He noted that the Electricity Act 2023 has played a central role by decentralising the power sector and enabling subnational governments to participate more actively in electricity markets.
Adelabu said the reforms have significantly improved the sector’s financial outlook. He explained that revenue in the power sector grew by 70 percent in 2024, while government liabilities dropped by about N700 billion due to improved efficiency and cost recovery mechanisms. He also commended NELMCO for reducing inherited liabilities from N2.303 trillion to N146.76 billion and delivering over N700 billion in savings to the Federal Government through verification and reconciliation processes.
The minister added that the reform programme has triggered the activation of 16 state electricity markets, encouraging competition and innovation across the industry. He also pointed to improvements in generation capacity, which increased from 13 gigawatts to 14 gigawatts, with a peak generation milestone of 5,801.44 megawatts recorded.
To address the country’s metering gap, Adelabu said the government is implementing the Presidential Metering Initiative, backed by N700 billion mobilised through the Federal Account Allocation Committee and an additional $500 million World Bank facility. Procurement processes are already underway to deliver millions of meters nationwide. He described the commissioning of NELMCO’s new headquarters as a reinforcement of the institutional and financial structures needed to sustain ongoing reforms.
As part of broader sector improvements, the Nigerian Electricity Regulatory Commission also inaugurated the Forum of Nigerian Electricity Regulators during a first-quarter 2026 regulatory meeting with state electricity regulators in Lagos. The forum is expected to improve coordination, harmonise tariff-setting approaches, strengthen market operations, enhance consumer protection, and support capacity building among regulators.
