Power reforms attract $2bn investment, cut liabilities by N700bn – Adelabu

Nigeria’s Minister of Power, Adebayo Adelabu, says ongoing reforms in the electricity sector have attracted over two billion dollars in fresh investments, signalling renewed investor confidence and improved sector performance.

Adelabu made this known on Thursday in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company.

He disclosed that the sector recorded a 70 per cent revenue growth in 2024, while government liabilities were reduced by about N700 billion, reflecting improved efficiency and stronger cost recovery mechanisms.

According to the minister, the progress stems from sweeping reforms implemented under the Renewed Hope Agenda of President Bola Tinubu, adding that the transformation is already yielding measurable results across the electricity value chain.

Adelabu said the reforms anchored on policy overhaul, market liberalisation, and institutional strengthening are repositioning the sector for sustainability, efficiency, and increased private sector participation.

He highlighted the Electricity Act 2023 as central to the reform drive, noting that it has enabled decentralisation and opened the sector to 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.

The minister added that the development of a National Integrated Electricity Policy—the first in over two decades—now provides a unified framework for implementing the Act and improving coordination between federal and state governments.

Adelabu further disclosed that generation capacity has increased from 13 gigawatts to 14 gigawatts, with a peak generation of 5,801.44 megawatts recorded, indicating gradual improvement in supply.

He said the government is also addressing the metering gap through the Presidential Metering Initiative, backed by N700 billion mobilised through the Federal Account Allocation Committee, alongside an additional 500 million dollar facility from the World Bank to support mass meter deployment nationwide.

On regional integration, the minister revealed that Nigeria successfully synchronised its national grid with those of other ECOWAS countries during a four-hour uninterrupted test run, a development he said demonstrates improved stability and readiness for expanded cross-border electricity trade.

Adelabu described the inauguration of NELMCO’s headquarters as a strategic milestone, noting that the agency plays a critical role in strengthening the sector’s financial and institutional framework.

He disclosed that NELMCO has reduced inherited liabilities from N2.303 trillion to N146.76 billion and delivered over N700 billion in savings to the Federal Government through verification and reconciliation efforts.

The agency also cut ground rent claims from N644 billion to N41.8 billion and achieved a 45 per cent reduction in post-privatisation liabilities owed by Ministries, Departments and Agencies to electricity distribution companies.

“The reforms are anchored on building a transparent, sustainable and commercially viable power sector capable of supporting economic growth,” Adelabu said, reaffirming the government’s commitment to delivering reliable electricity to Nigerians.