Federal Government reforms in the electricity sector are beginning to yield firm results, with more than $2 billion in new investments recorded since the Tinubu administration assumed office, Minister of Power Adebayo Adelabu said yesterday in Lagos.
The minister spoke at PricewaterhouseCoopers’ (PwC) 2025 Annual Power and Utilities Roundtable, themed “Nigeria’s Multi-tier Electricity Market: Imperatives for Successful Evolution.”
Adelabu said the reforms are targeting the long-standing metering deficit, noting that only six million of the nation’s 13 million registered electricity customers currently have meters, leaving nearly half on the widely criticised estimated billing system.
To close the gap, he announced an accelerated metering rollout under two major programmes — the Presidential Metering Initiative, backed by N700 billion to deploy 10 million meters in five years, and the $500 million Distribution Sector Recovery Programme, which will provide another 3.45 million meters and introduce remote meter-data technologies.
“Real-time tracking will strengthen collections, improve liquidity and ensure consumers pay only for what they use,” Adelabu said.
The minister said deeper structural changes are underway, led by the Electricity Act 2023, which decentralised the industry and empowered states to generate, transmit and distribute electricity. He noted that several states are already developing their own electricity markets, marking a historic shift from the previous centralised structure.
He added that the National Integrated Electricity Policy — approved in February 2025, the first in over two decades — now defines clear roles for regulators, operators, investors and consumers across both traditional and renewable energy segments.
Adelabu said commercialisation is reshaping the sector’s economics, citing rising grid-based revenues. Distribution-level earnings grew from N1 trillion in 2023 to N1.7 trillion in 2024, with projections nearing N2.3 trillion by December 2025. He stressed that the growth is driven not by tariff hikes but by consumers shifting away from diesel and generator spending toward grid supply.
He highlighted other gains: installed generation capacity has increased from 13 to 14 gigawatts; peak generation reached an all-time high of 5,801.44MW; and the grid recorded its highest-ever energy trading volume of 128,370.75MWh. After 12 system collapses in 2024, only one occurred in 2025, with supply restored within hours.
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One of the most significant milestones, according to him, is Nigeria’s successful synchronisation with the West African Power Pool (WAPP). After a failed seven-minute test in 2007, the 2025 synchronisation held for over four hours, setting the stage for a final multi-day test that could secure permanent integration and enable Nigeria to export electricity across the sub-region.
Despite the gains, Adelabu said reforms must continue, especially in strengthening regulation at federal and state levels, protecting consumers and deepening private-sector participation.
“Nigeria’s transition to a multi-tier electricity market is not optional — it is a necessity,” he said. “To build a reliable and competitive power sector, we must confront our challenges directly and adopt practical solutions.”
The minister said rising investment, reduced subsidy burdens, improved liquidity and growing state participation indicate that Nigeria is gradually moving from a fragile, state-dependent system to a commercially viable, scalable power market capable of driving industrial growth.
Lagos State Commissioner for Energy and Natural Resources, Engr. Abiodun Ogunleye, said the multi-tier model will require patience as regulators adjust. He urged stakeholders to allow the new framework to mature.
“Give us three years,” he said. “If we have not delivered impact at scale, then bring forward whatever reforms you propose. But at this stage, Nigeria deserves the chance to try a different model.”
PwC Regional Senior Manager, Sam Abu, said Nigeria’s power challenges remain “real and unresolved,” but the reforms have opened a new chapter.
He said the Electricity Act 2023 represents a major shift, allowing states to establish and regulate their own electricity markets — a move he described as essential for competition and innovation.
“This transition will demand strong regulation, investment and coordination,” he said. “If executed well, Nigeria stands to win immensely.”
Abu reaffirmed PwC’s commitment to working with government, regulators, investors and industry players to build a stronger electricity market.
“Power reform is not an instant event — it is a journey,” he said. “Today’s roundtable is another step toward shaping the energy future of over 200 million Nigerians, and millions more across Africa.”
