The Federal Government’s power sector reforms have attracted over two billion dollars in fresh investments, the Minister of Power, Mr. Adebayo Adelabu, has disclosed.
The minister made the announcement on Thursday in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).
Adelabu highlighted that the reforms have yielded significant results, noting that the sector’s revenue grew by 70 per cent in 2024 while government liabilities were reduced by about N700 billion.
He attributed these achievements to improved efficiency and strengthened cost recovery mechanisms within the electricity value chain.
According to the minister, the sweeping reforms, carried out under the Renewed Hope Agenda of President Bola Tinubu, are beginning to deliver tangible benefits across the industry.
“The transformation is deliberate, and measurable progress is being made at every stage of the electricity value chain,” Adelabu said.
He explained that the reform agenda, which centers on policy overhaul, market liberalization, and institutional strengthening, is repositioning the sector for sustainability, operational efficiency, and increased private sector participation.
“Central to the reform drive is the Electricity Act 2023, which has decentralized the sector and enabled subnational participation,” he added.
Adelabu said the decentralisation had already facilitated the activation of 16 state electricity markets, fostering competition and innovation throughout the industry.
He also revealed that the development of a National Integrated Electricity Policy, the first in more than two decades, now provides a unified framework for implementing the Act.
The policy, he said, strengthened coordination between federal and state governments while accelerating access to reliable and affordable electricity.
In terms of technical performance, the minister said the nation’s electricity generation capacity had increased from 13 gigawatts to 14 gigawatts, with a record peak generation of 5,801.44 megawatts.
He also highlighted government efforts to close the long-standing metering gap through the Presidential Metering Initiative, backed by N700 billion mobilised via the Federal Account Allocation Committee.
Adelabu noted an additional $500 million World Bank facility was being deployed, with procurement processes already underway to provide millions of meters nationwide.
On regional integration, the minister said Nigeria had successfully synchronised its national grid with those of other ECOWAS countries, completing a four-hour uninterrupted test run.
He said the development underscores the growing stability and technical capacity of the country’s electricity system and signals readiness for expanded regional power exchange.
Describing the inauguration of NELMCO’s headquarters, Adelabu said the new building represents more than infrastructure, it reinforced the institutional and financial backbone required to sustain the reform process.
He commended the agency for its critical role in stabilising the sector, noting that it reduced inherited liabilities from N2.303 trillion to N146.76 billion.
Adelabu further stated that NELMCO delivered over N700 billion in savings to the Federal Government through rigorous verification and reconciliation processes.
The agency also significantly reduced ground rent claims from N644 billion to N41.8 billion and achieved a 45 per cent reduction in post-privatization 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.
