The Minister of Power, Mr Adebayo Adelabu, says power sector reforms have attracted over two billion dollars fresh investments into the industry.
Adelabu said this in Abuja on Thursday during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).
He said that the sector’s revenue grew by 70 per cent in 2024, while government liabilities were reduced by about N700 billion, reflecting improved efficiency and cost recovery mechanisms.
The minister said that the sweeping reforms and measurable progress in the sector were achieved under the Renewed Hope Agenda of President Bola Tinubu,
According to him, the transformation is beginning to yield tangible results across the electricity value chain.
Adelabu said the reforms, anchored on policy overhaul, market liberalisation and institutional strengthening, were repositioning the sector for sustainability, efficiency and increased private sector participation.
The minister described the ongoing changes as deliberate steps to build a viable and investor-friendly electricity market.
“Central to the reform drive is the Electricity Act 2023, which has enabled the decentralisation of the sector and opened the door for sub national participation.
“This has already led to the activation of 16 state electricity markets, while also stimulating competition and innovation within the industry,” he said.
He said that the development of a National Integrated Electricity Policy, the first in over two decades, now provides a unified framework for implementing the Act.
He said that it was also strengthening coordination between Federal and state governments, and accelerating access to reliable and affordable electricity.
The minister also said there was improvement in generation capacity, which has increased from 13 gigawatts to 14 gigawatts, alongside record operational milestones, including a peak generation of 5,801.44 megawatts.
“Government is addressing the long-standing metering gap through the Presidential Metering Initiative, backed by N700 billion mobilised through the Federal Account Allocation Committee.
“There is also an additional 500 million dollars World Bank facility, with procurement processes already underway to deliver millions of meters nationwide,” he said.
Adelabu said as an outcome of the boarder reforms, Nigeria had successfully carried out the synchronisation of its national-grid with those of other ECOWAS countries following a four-hour-uninterrupted test run.
He said the development underscored the growing stability and technical capacity of the nation’s electricity system and signals readiness for expanded regional power exchange.
The minister described the inauguration of NELMCO’s headquarters as more than the unveiling of a building.
He said that it represented a reinforcement of the institutional and financial backbone required to sustain the reform process.
He commended the agency for its role in stabilising the sector, disclosing that it has reduced inherited liabilities from N2.303 trillion to N146.76 billion.
Adelabu also said that the agency delivered over N700 billion savings to the Federal Government through rigorous verification and reconciliation processes.
He said NELMCO had significantly reduced ground rent claims from N644 billion to N41.8 billion and achieved 45 per cent reduction in post-privatisation liabilities owed by MDAs to electricity distribution companies.
“The reforms are anchored on building a transparent, sustainable and commercially viable power sector capable of supporting economic growth.
“The progress recorded so far reflects the government’s commitment to delivering reliable electricity to Nigerians,” he said.
