The Federal Government has said its reforms in the power sector have attracted $2 billion in investment, with liabilities reduced to N146 billion.
The Minister of Power, Adebayo Adelabu, said this on Thursday in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).
This is according to a statement sourced by his Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji.
What they are saying
The minister said the reforms, anchored on policy overhaul, market liberalisation, and institutional strengthening, are repositioning the sector for sustainability, efficiency, and increased private sector participation.
Central to the reform drive, he noted, is the Electricity Act 2023, which has enabled the decentralisation of the sector and opened the door for subnational participation.
- “Adelabu further disclosed that 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.
- “According to him, sector revenue grew by 70 percent in 2024, while government liabilities were reduced by about N700 billion, reflecting improved efficiency and cost recovery mechanisms,” the statement said.
- The minister 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 and delivered over N700 billion in savings to the Federal Government through rigorous verification and reconciliation processes.
More insights
He said the reforms have already led to the activation of 16 state electricity markets, while also stimulating competition and innovation within the industry.
The minister pointed to improvements in generation capacity, which he said had increased from 13 gigawatts to 14 gigawatts, alongside record operational milestones, including a peak generation of 5,801.44 megawatts.
- He said the government is addressing the long-standing metering gap through the Presidential Metering Initiative, backed by N700 billion mobilised through the Federal Account Allocation Committee and an additional $500 million World Bank facility, with procurement processes already underway to deliver millions of meters nationwide.
He described the commissioning of NELMCO’s new headquarters as more than the unveiling of a building, noting that it represents a reinforcement of the institutional and financial backbone required to sustain the reform process.
What you should know
As part of reforms in the power sector, the Nigerian Electricity Regulatory Commission (NERC) inaugurated a new forum aimed at enhancing coordination and effectiveness in electricity regulation across Nigeria.
- The forum was inaugurated during the first quarter of 2026 Regulatory Meeting with State Electricity Regulators (SERs) in Lagos.
- This was disclosed in a statement shared on X by NERC on its official handle on Wednesday.
The Forum of Nigerian Electricity Regulators (FONER) is expected to drive key regulatory objectives, including fostering dialogue between NERC and SERs, promoting harmonised approaches in tariff setting, market operations, and consumer protection, and supporting capacity building through peer learning.
