The Minister of Power, Mr. Adebayo Adelabu, has disclosed that the power sector generated an additional N700 billion in revenue in 2024.
This, he said, represents a 70% year-on-year increase compared to the collections recorded in 2023.
Adelabu made this disclosure during the 6th edition of the 2025 Ministerial Press Briefing Series held on Thursday in Abuja.
“It is evident that, due to our transformative tariff reforms, the electricity market generated additional N700 billion revenue in 2024, reflecting a 70 per cent increase from what was collected in 2023,” Adelabu said.
He noted further, “This resulted from the cost-reflective tariff adjustment for Band A customers. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20 per cent.”
He noted that this financial uptick has also helped reduce the government’s tariff subsidy burden.
“This positively impacts the reduction of the government-subsidised tariff shortfall by 35 per cent, decreasing it from N3 trillion to N1.9 trillion,” he added.
According to Adelabu, the performance demonstrates that financial viability and improved service delivery can coexist within Nigeria’s electricity value chain if appropriate reforms are sustained.
Nigeria’s Energy Access Ambitions
The Minister also highlighted the Tinubu administration’s continued push for energy access across Nigeria and the broader African continent. He referenced Nigeria’s endorsement of the Nigerian Energy Compact, which was signed in January during a summit held in Tanzania.
The Compact is a flagship initiative under the leadership of the World Bank and the African Development Bank (AfDB), aimed at significantly scaling up access to electricity.
“The target of M300 is to extend energy access to an additional 300 million Africans by 2030 out of the 600 million currently lacking access,” Adelabu said.
- He explained that the initiative is anchored on a five-pronged strategy aimed at transforming the power sector.
- According to him, this includes expanding electricity generation capacity to meet growing demand, strengthening the operational and financial stability of power utilities, and creating incentives to attract greater private sector participation.
- Additionally, the minister said, the strategy focuses on accelerating the adoption of renewable energy sources and promoting the integration of regional energy markets to foster cross-border collaboration and efficiency.
The Compact also aims to promote clean cooking solutions and improve Nigeria’s overall energy mix, with a strong emphasis on renewables and sustainability.
Policy Direction and Sector Reform
The Minister noted that, in line with the Electricity Act of 2023, the Federal Ministry of Power has developed the National Integrated Electricity Policy (NIEP) to provide a long-term roadmap for reform and modernization.
Adelabu noted that the NIEP, which has been submitted to the Federal Executive Council for approval, will serve as a guiding framework for all power sector actors—including investors, operators, regulators, and government agencies.
He emphasized that the policy is built on a data-driven and evidence-based approach to planning and operations, ensuring transparency, accountability, and improved investor confidence.
More insights
In January 2025, the African Development Bank (AfDB) and the World Bank Group pledged $40 billion towards the Mission 300 initiative.
Mission 300 has an ambitious goal to provide electricity to 300 million Africans by 2030
