Category: Energy

  • Whose table? Why Nigeria’s petrol future needs more voices

    Whose table? Why Nigeria’s petrol future needs more voices

    By Olawunmi Farominiyi 

    When Aliko Dangote—Nigeria’s wealthiest businessman—warned of an “oil cabal” strangling the country’s energy sector, I couldn’t help but laugh. The irony was striking. 

    Here is a man whose refinery could single-handedly supply Nigeria’s petrol needs, yet he’s suing regulators to block petrol imports entirely. And still, he points fingers at unnamed elites. It’s a bit like a chef demanding a monopoly over your kitchen, then blaming the neighbours for your hunger.

    Theatrics aside, the real question is not about cabals, it’s much simpler. Who should shape Nigeria’s energy policies? At the moment, we are seeing conversations revolve around boardrooms and presidential villa meetings; spaces are dominated by billionaires and bureaucrats. 

    Meanwhile, the people who have kept petrol flowing to Nigeria, depot owners, independent marketers, and even women selling petrol in jerrycans in the hard-to-reach areas like Agbokim in Cross River state, are not in the room. That needs to change. 

    When control is an illusion 

    The Dangote Petroleum Refinery is impressive. It is a $20 billion bet on Nigerian self-sufficiency. But we need to remember that refineries are just one link in the chain. What happens when that chain snaps? Independent marketers have been accused of being exploitative in the past, but, importantly, they are adaptive. When NNPC’s supply falters, they tap into other networks. When prices swing, they adjust not out of altruism, but survival. 

    In Nigeria, where plans often serve more as polite suggestions than binding commitments, adaptability isn’t just useful,  it’s essential.

    Yet, the government’s current approach seems to view these players as relics.  At this moment, deregulation, which was supposed to level the playing field, seems to be tilting entirely towards the one mega refinery. 

    Case in point: the lawsuit to ban imports, which, if granted, will mean the refinery will not just dominate, it will dictate. What is a “Perfect” Market? Supporters of the single supplier model argue it will bring order, no price swings, no shady middlemen, just corporate efficiency. 

    But when has Nigeria, or any single-market economy, ever truly thrived on that kind of “order”? Nigerian markets are chaotic. The terrain is unpredictable. That chaos, and the networks marketers have built within it, is its own form of resilience.

    When the Dangote Petroleum Refinery slashed petrol prices, only to abruptly halt supply after the naira-for-crude deal expired, prices crept up, but depot operators and independent marketers sustained supply. In a monopolised market, if the refinery goes down for maintenance, it’s dismissed as a minor hiccup. 

    But when your only water source runs dry, that “hiccup” quickly becomes a national crisis. Compare that to the patchwork import system: if one supplier falters, others step in. It may be inconsistent, but it doesn’t collapse.

    The government’s push for standards isn’t misplaced. Fuel adulteration exists, and price gouging is real, but regulations designed without the input of independents are like rewriting traffic laws without consulting the drivers.

    An example from telecoms past

    We have learned this lesson in the past. In the 1990s, when Nitel was the only player, Nigerians were paying exorbitant prices for landlines that rarely ever worked, until deregulation unleashed Celtel (now Airtel), MTN and Glo. 

    The GSM revolution was upon Nigeria; prices plummeted, and coverage exploded. It was not seamless. There were still dropped calls, network congestion and billing fraud, but that chaos birthed innovation. 

    Today, market women use mobile banking, thanks to the innovation from properly done deregulation. Energy is more difficult, but the same principle holds. Competition breeds accountability. 

    A Dangote monopoly might offer price standardisation, but the vulnerabilities will also be standardised. What happens when global crude prices dip and Nigeria can’t pivot to cheaper imports? Or what happens when the refinery faces downtime? 

    Necessary ingenuity

    Several Nigerians have decided to transition their cars to run on both petrol and CNG. According to a taxi driver I spoke to, “Fuel prices change like the weather. I have to adapt.” This adaptation was not born from policy papers, it is a necessity–the same necessity that has depot owners keep a stockpile that is often more-than-necessary to prevent the country from entering a permanent scarcity.These players are stakeholders in a complex ecosystem. 

    Excluding them from policy discussions overlooks the fact that Nigeria’s energy economy isn’t just about FX reserves and corporate profits — it’s also about the truck drivers on the highways, the mechanics fixing generators, and the woman selling kerosene to feed her family. Their workarounds are the system.

    What way forward? 

    This is not about demonising the Dangote Petroleum Refinery. The refinery is transformative for Nigeria and Africa, but it needs to be integrated into Nigeria’s already diversified market, not become the entire market. 

    This diversification requires intentionality: Regulate with and not against the oil independents: Involve depot unions in drafting pricing and safety standards. Use their grassroots networks to combat fuel adulteration.

    Retain and encourage imports: The more, the merrier; let refiners prove they can meet demand before shutting down alternatives.

     America guarantees its residents globally competitive oil prices because it mandates petrol importation.

    Resist the allure of “big is better”: Nigeria’s depot operators and petrol retailers are a latticework of redundancy. This is a safeguard. 

    This is deregulation in action. Whose Security? Dangote’s “cabal” rhetoric against the backdrop of Nigeria’s state house is framing our collective energy security as a war against boogeymen. But, security is about honesty, clarity and options. 

    Quick media wins by a large player, sure to gain media airtime, is not energy security. Security is the taxi driver with his dual-fuel car, marketers stockpiling reserves and planning for any eventualities. Nigeria’s energy security can not be decided by courtrooms or closed-door deals, all hands must be on deck. 

    When petrol is scarce, it is not the well-tailored suits in Nigeria that will keep power and generators humming. The question. The only question that matters and must be answered is: How do we build our energy ecosystem and keep it resilient, fair and open? How can Nigeria become Africa’s refining hub? 

    We all have that proverb. “One tree does not make a forest.” Let the Dangote refinery thrive. But let others breathe. 

    •Olawunmi Farominiyi is a public administrator and strategist working in the intersection of energy and economic sustainability. She leads Client Relations at Mosaic & House Advisory.

  • Lagos to launch first subnational electricity market with unified plan

    Lagos to launch first subnational electricity market with unified plan

    Lagos State is set to make history as the first subnational entity in the country and among the few in Africa to establish a fully regulated, independent electricity market. 

    As part of a sweeping reform to overhaul its energy ecosystem, the state government is consolidating all its power-related policies into a single, integrated electricity strategy aimed at improving energy access, attracting investment, and accelerating development.

    Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, made the announcement during the 2025 Ministerial Press Briefing held in Alausa, Ikeja. 

    The event was part of activities marking the second anniversary of Governor Babajide Sanwo-Olu’s second term in office.

    He said: “We are consolidating our energy frameworks into one cohesive document that will help to streamline implementation and drive strategic partnerships. This revised Integrated Resource and Strategic Plan will reposition Lagos as a hub for sustainable power solutions.”

    The new plan, Ogunleye explained, is not just an administrative update—it is a strategic roadmap that will guide both public and private sector investment across the electricity value chain. Once approved by the governor, the plan will serve as the blueprint for a transformative shift in how power is generated, distributed, and consumed in the state.

    Central to this transformation is the upcoming Lagos Electricity Market (LEM), a first-of-its-kind subnational energy market that will operate with its own regulatory framework. According to Ogunleye, LEM will be digitally powered to monitor power generation and consumption in real time, ensuring transparency, efficiency, and robust consumer protection.

    “The LEM will be powered by digital tools to monitor generation and usage in real time. This will ensure transparency, attract investors, and protect consumers,” he said.

    Read Also: Why increasing electricity tariffs won’t solve problem

    The launch of the LEM aligns with recent constitutional amendments that allow Nigerian states to independently regulate and manage electricity supply within their jurisdictions, a development Lagos is now poised to lead. Ogunleye said this move would create a favourable investment climate while ensuring the state’s growing population and industries have reliable access to power.

    “We want a policy environment that is not only investor-friendly but also serves the energy needs of Lagosians efficiently,” he added.

    In line with this, the state has signed a memorandum of understanding with the Federal Government to accelerate electricity access in underserved communities. Ogunleye described the partnership as a major milestone that will boost economic productivity and improve quality of life for many residents.

    He said: “This partnership with the Federal Government is a game-changer. It will deepen energy access and bring the much-needed power to more households and businesses across Lagos.”

    To complement its electricity reform agenda, the state is also expanding its focus on clean fuels. Ogunleye revealed that 65 vehicles were converted to run on compressed natural gas (CNG) in the past year, while the state-owned IBILE Oil and Gas sold over 100 million litres of petrol and 9.6 million kilograms of liquefied petroleum gas (LPG).

    “These figures show our commitment to cleaner energy and economic efficiency. Our gas initiatives are reducing emissions and saving costs for Lagosians,” he said.

    Efforts to localise power sector infrastructure are also underway. Ogunleye disclosed that the government is working with private sector players to begin local manufacturing of electricity infrastructure such as meters, transformers, cables, and switchgears. This, he said, would reduce import dependence, create jobs, and strengthen the local economy.

    Meanwhile, the ministry is also intensifying its crackdown on illegal mining activities, having intercepted 333 trucks at unauthorised sites and issued 23 stop-work orders in locations like Ikorodu, Epe, and Badagry.

    “These operations threaten not just our environment, but also the safety and livelihoods of our people. We are taking decisive action,” he remarked.

    With its sights set on a coordinated energy transition, the commissioner reiterated the state’s willingness to collaborate with the federal government and other subnational entities to build a robust, future-ready energy sector.

    “With these initiatives, Lagos is set to become the first sub-national in Nigeria and among the few in Africa with a fully regulated and independent electricity market,” he stated.

  • Nigeria’s KGG hub wins IGU award

    Nigeria’s KGG hub wins IGU award

    The Kwale Gas Gathering (KGG) hub, located in Kwale, Delta State, earned Nigeria the Regional Gas Award for Africa by the International Gas Union (IGU) at the 29th World Gas Congress (WGC) which ended in held in Beijing, China, at the weekend. The event was the premier gathering of the global gas and energy industry, hosted by the International Gas Union (lGU). IGU represents over 90 per cent of the global natural gas production and consumption market.

    The Chief Executive Officer of Xenergi Limited, a Nigerian gas-processing company, Emeka Ene, received the award on behalf of the team that developed the technical submission, comprising Emeka Ene, Debo Fagbami, Kingsley Idedevbo, James Ogunleye, and Sahhed Hammed.

    He said that beyond boosting gas supply and addressing environmental concerns, the KGG facility has also created hundreds of direct and indirect jobs for the indigenous people of the host and nearby communities.

    Ene recognised and commended the multidisciplinary technical team that delivered the project and appreciated the Nigerian government and its agencies in the petroleum industry for providing the enabling environment for indigenous companies to demonstrate their various capabilities in resolving the petroleum industry’s operating challenges.

    READ ALSO: Celebrating President Tinubu’s remarkable two years in office

    He expressed gratitude to the President for giving the Decade of Gas programme a substantial boost. He also commended the ministers of petroleum resources, the NNPC, industry regulators, the Office of the Decade of Gas, the management and staff of Xenergi Limited, and the Nigerian petroleum industry stakeholders on the recognition accorded to the country by the IGU.

    The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 operating cluster by providing an open-access processing opportunity for independent operators in the area to monetize natural gas from their fields through the KGG’s quick-to-market gas gathering, compression, injection,and metering infrastructure. It has a processing capacity of 300 million standard cubic feet of gas per day (mmscf/d), contributes to the country’s domestic gas supply, drives economic growth, eliminates flares at oil production sites, boosts operating income for players, and addresses environmental pollution.

    The KGG hub has been tied into the 48-inch OB-3 gas trunk line owned and operated by the Nigerian Gas Infrastructure Company (NGIC) of the Nigerian National Petroleum Company (NNPC) Limited. The project has been described as a significant milestone in Nigeria’s Decade of Gas initiative and a significant contribution to increasing the incremental gas volumes available for the domestic gas market.

    With the successful injection of gas from the Energia/Oando JV and the Chorus-operated Ebendo and Matsogo fields, respectively, into the OB3, the KGG Facility is now poised to receive additional gas from nearby fields, including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas.

    During the WGC 2025, Xenergi collaborated with the Delta State Special Economic Zone (DSEZ), NNPC, and GACN to launch a highly successful roadshow showcasing the Kwale Eco-Industrial Park (KGIP) which is focused on promoting gas-based Industries (GBIs). The KGIP is co-located with the KGG in Kwale, Delta State.

  • Tinubu fulfils pledge as GEIL completes Ogoni crude oil terminal

    Tinubu fulfils pledge as GEIL completes Ogoni crude oil terminal

    President Tinubu’s Renewed Hope Agenda for the Ogoni Communities Gains Momentum with GEIL’s Otakikpo Terminal.

    In a significant boost to President Bola Ahmed Tinubu’s Renewed Hope Agenda, Green Energy International Limited (GEIL) has completed the Otakikpo crude oil terminal, an infrastructure development that directly supports the government’s promise to resolve the Ogoni crisis that has persisted for over three decades.

    The Otakikpo terminal, the first privately developed crude oil terminal by an African operator, is strategically located near the Ogoni and Opobo fields, which have remained undeveloped for more than 30 years due to environmental, political, and logistical challenges.

     With its 750,000 barrels of oil storage capacity (expandable to 3 million barrels) and 360,000 barrels per day pumping capability, the terminal offers a secure and efficient evacuation route for the Ogoni and Opobo stranded reserves in the region.

    President Tinubu’s administration has placed energy security and regional development at the forefront of its economic policy, pledging to create sustainable solutions for neglected oil-producing communities.

     The Otakikpo terminal now provides the crucial infrastructure needed to unlock over 3 billion barrels of oil equivalent (BOE) reserves from stranded fields—including those within Ogoni territory.

    Read Also: Nigeria needs aid for $410b energy transition plan, says GEIL

    Beyond resolving historical challenges, the terminal’s design to handle up to 250,000 barrels per day of crude injection presents an opportunity for third-party producers, fostering economic inclusion and job creation in the Niger Delta. It aligns with President Tinubu’s commitment to modernizing Nigeria’s oil industry, fostering indigenous participation, and ensuring communities benefit directly from resource development.

    Industry experts believe this project marks a turning point in Nigeria’s approach to oil logistics, demonstrating that local innovation and investment can drive long-awaited solutions to long-standing issues like the Ogoni crisis.

    Professor Anthony Adegbulugbe, the Chairman and CEO of Green Energy International Limited remarked that “The Otakikpo terminal is within 6km to 13 km distance from the Opobo and Ogoni fields. These assets are more than 60km from the nearest evacuation and export infrastructure and have been shut in for more than 3 decades. Our company has keyed into the current administration renewed hope agenda for the Ogoni and Opobo communities. With this infrastructure and our game-changing multiphase fluid flow technology, these fields could deliver up to 200kbopd and 3 billion Barrels reserves within 12 months of project sanction. Without the terminal, these assets would continue to be stranded and undeveloped”.

    As Nigeria prepares for its first crude exports from the terminal, the administration’s commitment to regional revitalization and resource optimization is becoming more tangible. With projects like GEIL’s Otakikpo terminal, Tinubu’s Renewed Hope Agenda is translating into real economic transformation, ensuring that neglected oil-rich communities like the Ogoni and Opobo communities finally receive the development they deserve.

  • Shafa CNG to align with govt’s cleaner energy future – Maishanu

    Shafa CNG to align with govt’s cleaner energy future – Maishanu

    Shafa Energy, a subsidiary of AYM Shafa Holdings Limited and leading provider of sustainable energy solutions, has announced the launch of Shafa CNG. 

    This initiative aligns with the President Bola Ahmed Tinubu’s administration commitment to easing the impact of fuel subsidy removal on Nigerians by reducing energy costs, and the government’s vision for a cleaner and more sustainable energy future.

    This was disclosed by the company ahead of the launch of its first CNG station in Abuja.

    “Shafa CNG represents a major step forward in our commitment to sustainable energy solutions,” said Alhaji Yakubu A. Maishanu, the Executive Chairman AYM Shafa Holdings Limited. 

    “This initiative not only aligns with the federal government’s vision for a cleaner and more affordable energy future but also demonstrates our dedication to reducing our environmental footprint and enhancing the lives of Nigerians.”

    The recent removal of fuel subsidies in 2023 in Nigeria accelerated the adoption of CNG as a more cost-effective option for fuelling transportation. 

    The Federal Government has expanded CNG infrastructure, increasing conversion centres from 7 to 193 and attracting $440 million in private sector investment.

    “This innovative venture is part of the Presidential Compressed Natural Gas Initiative (P-CNGi), launched in 2023, which targets the launch of one million CNG vehicles by 2027 and involves establishing 1,000 conversion and refuelling stations. 

    Read Also: ‘We’ve progressed with CNG penetration but there’s room for improvement’

    “Our Shafa CNG initiative is designed to provide reliable, efficient, and eco-friendly solutions that contribute to the well-being of our communities and the prosperity of our nation.

    “The launch of Shafa CNG is a significant milestone that underscores our commitment to reducing our environmental footprint while enhancing the lives of Nigerians,” he added.

    “Shafa CNG is a testament to our company’s innovative spirit and our team’s tireless efforts to develop solutions that meet the needs of our customers and the environment. We believe that this initiative will have a lasting impact on our business, our communities, and the environment.

    “As we embark on this new chapter, we look forward to working with our partners, customers, and stakeholders to promote the adoption of CNG and contribute to a more sustainable and prosperous future for Nigeria,” he concluded.

  • Power sector reforms raise hopes, yet challenges linger

    Power sector reforms raise hopes, yet challenges linger

    More than a decade after Nigeria’s power sector privatisation, millions still grope in darkness while industries run on generators. Despite high hopes, the journey has been turbulent—marked by systemic dysfunctions and unmet expectations. Yet, recent reforms under the Bola Tinubu administration, including a bold new electricity roadmap, are reigniting hope. The journey, however, is far from over, reports Assistant Editor MUYIWA LUCAS.

    The Nigerian power sector has experienced a turbulent journey over the years. Since its privatisation in November 2013—which unbundled the sector into three components: Generation, Transmission, and Distribution—efforts to revitalise electricity supply have largely fallen short of expectations. For many Nigerians, privatisation has failed to deliver the promised stability, making reliable power supply an elusive dream. Yet, the importance of consistent electricity to economic growth cannot be overstated.

     The absence of stable power has crippled small-scale industries and artisans, forcing many out of business. According to the Manufacturers Association of Nigeria (MAN), electricity shortages cost the Nigerian economy approximately N10 trillion annually—about two percent of the GDP. This chronic deficit has positioned Nigeria among the most challenging environments for business, ranking 171 out of 190 countries on the World Bank’s Ease of Doing Business index. Recognising this challenge, the Tinubu administration took decisive action early in its tenure to reposition the sector.

    In the past two years, the government has introduced reforms and laid down frameworks aimed at a transformative shift in the electricity landscape. One of the most significant moves was the recent approval of the National Integrated Electricity Policy (NIEP), a roadmap for the Nigerian Electricity Supply Industry (NESI). First submitted in December 2024, the NIEP seeks to unlock $122.2 billion in investments between 2024 and 2045 to revitalise the sector. The policy aligns with the revised Electricity Act 2023 and promotes energy diversification, aiming to move beyond reliance on hydropower and gas.

    Instead, the roadmap envisions integrating solar, wind, hydrogen, biomass, nuclear, and carbon capture technologies. It also earmarks $192 million over five years (2024–2028) to strengthen transmission infrastructure. “This policy marks a significant evolution from the outdated 2001 National Electric Power Policy. It enables the growth of state-level electricity markets and decentralised energy planning,” said Power Minister Adebayo Adelabu. “It’s a living document that evolves with the sector’s needs, stressing innovation, collaboration, and consumer protection.”

    The administration has set an ambitious goal: to achieve at least 8,000 megawatts (MW) of power generation by 2027. According to Adelabu, the country has already seen progress. On March 2, 2025, Nigeria recorded an all-time high available generation capacity of 6,003MW, followed by a peak generation of 5,801.44MW two days later. Average daily generation for the first quarter of 2025 stood at 5,700MW, up from 4,100MW in Q3 2023—an increase of 1,600MW, representing a near 40% growth since the administration took office. “It took Nigeria four decades to hit 4,000MW.

    In just 18 months, we’ve added 1,700MW. If this momentum is sustained, we’re confident of reaching our 8,000MW target by 2027,” Adelabu affirmed. The administration has also made strides in recovering dormant capacity. Through strategic interventions at the Niger Delta Power Holding Company (NDPHC), 232.5MW was restored from idle assets at the Omotosho and Benin power plants. Additionally, decentralised energy projects have begun to light up rural communities. Notable projects include a 550kWp mini-grid in Bakin Ciyawa and Kwande (Plateau), a 440kWp installation in Cross River, a 990kWp grid serving 3,900 households in Niger State, and a 510kWp solar hybrid grid across Osun State. These interventions signal a new dawn—one where Nigeria’s power sector can finally meet the aspirations of its citizens, power its industries and stimulate economic growth.

    In recent months, the Niger Delta Power Holding Company has ramped up construction, upgrades, and installations of critical infrastructure across the country. This includes 14 new transmission lines and the rehabilitation of existing ones, such as the 2x132kV line bay extension at the TCN Papalanto substation in Ogun State and the 65km 330kV double circuit Afam–Ikot Ekpene transmission line. Notably, the government is also facilitating the full evacuation of electricity from key hydropower assets. At present, the Zungeru Hydropower Plant is evacuating 550MW of its 700MW capacity, while the Kashimbila Plant is operating at its full 40MW capacity. Beyond this, early-stage development of the Makurdi Hydro Project — with a potential capacity of 1,500MW — is underway, alongside efforts to revitalise the Kaduna Thermal Plant.

    Once stalled for six years, the 215MW Kaduna plant is now 87 per cent complete and expected to be operational by the end of 2025. Yet, beneath the impressive figures and initiatives lies a stark challenge: the financial distress of the Generation Companies (GenCos). Mounting debts owed by Distribution Companies (DisCos) have placed a significant burden on GenCos, hampering their ability to operate efficiently. In response, President Bola Ahmed Tinubu recently convened a crucial meeting with the leadership of Nigeria’s power-generating companies to address the N4 trillion debt threatening the sector — N2 trillion of which accrued in 2024 alone, with the rest being legacy debts. The GenCos have expressed grave concern about their diminishing capacity to service loans, maintain infrastructure, and invest in expansion. Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), warned of a potential collapse of the sector without urgent intervention.

    READ ALSO: One day with President Tinubu

    Echoing this, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, underscoring the vital role of electricity in powering industries, homes, and hospitals. Dr. Joy Ogaji, CEO of APGC, further highlighted systemic issues such as irregular gas supply, payment defaults, and foreign exchange volatility — noting the naira’s sharp depreciation from N157 to over N1,600 per dollar in a decade.

    Presidential Power Initiative marks a renewed drive

    Considering these challenges, President Tinubu’s administration has reinvigorated the Presidential Power Initiative (PPI), giving a fresh boost to the long-standing Siemens project. Originally conceived in 2018 to expand Nigeria’s electricity generation, transmission, and distribution capacity, the PPI is being driven with renewed vigour to support national development and economic growth.

    The President fast-tracked the project through the signing of an Acceleration Agreement shortly after taking office. This move paved the way for key milestones, including a redefined technical roadmap. Under this plan, Siemens Energy will focus exclusively on upgrading transmission infrastructure via a turnkey approach, while the distribution scope will be handled by other reputable Engineering, Procurement, and Construction (EPC) firms with strong financial and technical capacities. The overarching goal is to add 4,000MW to the national grid by 2026, with an additional aspirational target of 2,000MW — as directed by the Economic Management Team in 2024.

    Already, the pilot phase has seen the successful installation and commissioning of 10 power transformers and 10 mobile substations across the country. In 2024, the initiative focused on consolidating these gains and launching the main phase of the project. In parallel, the Federal Government-owned FGN Power Company has completed several transmission projects under the PPI banner, collectively adding over 700MW in transmission wheeling capacity to industrial zones, homes, businesses, and institutions. Strengthening transmission and distribution capacity Transmission remains a central pillar of Nigeria’s electricity overhaul.

    Under the PPI’s pilot phase, infrastructure upgrades across 13 locations added 700MW to the grid. Between 2024 and 2025, more than 70 new transformers were installed by the Transmission Company of Nigeria (TCN) using a mix of internally generated revenue and external support from the World Bank and African Development Bank’s Nigeria Electricity Transmission Project. These upgrades have expanded the grid’s transformation capacity by over 12,000MVA. Furthermore, the 2025 Appropriation Act includes a ₦25 billion allocation for the completion of ongoing transmission projects. Structural work is also progressing to regionalise the national grid through the Eastern and Western Supergrid frameworks — a move aimed at improving resilience and minimising system collapses. In the distribution space, ongoing reforms are targeting underperforming DisCos.

    Regulatory agencies have instituted stricter performance monitoring mechanisms to ensure accountability and service improvements. The Ministry of Power has also expanded energy access through initiatives like the Energising Education Programme (EEP) and the Distributed Access to Renewable Energy Scale-up (DARES) initiative. The EEP, which aims to provide reliable, clean energy to 37 federal universities and 7 teaching hospitals, has seen seven of these projects completed and ready for commissioning. In a further push to localise power innovation, the Rural Electrification Agency (REA) signed a landmark agreement with Oando Clean Energy to establish a 1.2GW solar power plant with an integrated recycling line for solar panels. This is expected to significantly boost sustainability and local content in the renewable energy ecosystem.

    At a recent energy sector engagement, Adelabu laid bare the stark reality threatening the backbone of the nation’s electricity transmission system: inadequate financing. He raised an urgent call for the Transmission Company of Nigeria (TCN) to be included in national appropriation, warning that the agency’s sole reliance on Internally Generated Revenue (IGR) is no longer sustainable. “They are short of funds; they operate solely on their IGR, which has been nose-diving over the years,” Adelabu lamented. “What they get monthly cannot even pay salaries, let alone maintain ageing infrastructure or expand transmission networks.” This admission comes amid wider conversations around the deteriorating state of Nigeria’s power sector—a complex web of dysfunctions that has left millions in darkness, stalled industrial productivity, and strained critical institutions like universities and hospitals.

    Perhaps the most damning indictment in the sector lies with the Distribution Companies (DisCos), whose decade-long performance has, by the Minister’s own admission, fallen woefully short. “We need to get tough with the DisCos,” Adelabu said pointedly. “Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points.” Originally expected to be backed by technical partners during the 2013 privatisation, many DisCos merely paid lip service to such partnerships, which, in most cases, dissolved within months. Instead of channelling investments into improving infrastructure, stakeholders allege that many investors prioritized debt servicing over service delivery. This gap has stoked public anger. The push for cost-reflective tariffs—a key reform being promoted by the Ministry—has triggered widespread backlash. Critics argue that such pricing mechanisms are premature in the absence of metering and accountability.

    Writing in a national newspaper, columnist Tunji Adegboye called the tariff reform “a ruse” in a system where over seven million customers are billed based on estimates. “I have paid N436,600.58 in just a few months due to questionable estimated billing by Ikeja Electric. They yank off 60 percent of every amount I vend, giving me only 40 percent value,” Adegboye recounted, questioning how a N132,000 disparity arose due to the absence of a functioning prepaid meter. Stakeholders suggest that subsidies should be diverted from the DisCos and used instead to fund local meter manufacturing firms. Mass deployment of meters, they argue, is a more just and impactful intervention.

    The banding dilemma

    A further layer of controversy surrounds the banding system, which classifies consumers into tariff groups based on hours of supply—Band A receiving the most power at the highest rates. This system, while designed to incentivise improved supply, has sparked allegations of social injustice. Power is disproportionately channelled to high-paying urban clusters, leaving rural and low-income communities languishing in blackout. Even essentials public institutions are not spared. Universities, hospitals and research institutes, classified under Band A, have been saddled with crippling electricity bills. Earlier this year, the Benin Electricity Distribution Company (BEDC) disconnected the University of Benin (UNIBEN) over a disputed bill exceeding N250 million—triggering student protests and a near standstill in academic activities.

    At least 10 public universities with the highest 2024 budgets have reportedly spent over N75 billion on electricity alone. UNIBEN’s monthly bill surged from N80 million to N280 million under the new tariff regime. Ahmadu Bello University (ABU) reportedly faces monthly bills of N300 million. Immediate past Vice Chancellor of the University of Lagos, Prof. Oluwatoyin Ogundipe, put it bluntly: “No Nigerian university, particularly a public one, can afford the electricity costs imposed by the DisCos.” UNILAG’s power bill for 2021 stood at N1.7 billion. The government subsidy? A meagre N150 million—and it was never fully disbursed. The industrial sector, too, is reeling under the pressure.

    Manufacturers cry out

    The Manufacturers Association of Nigeria (MAN) has voiced strong objections to the 250 per cent increase in tariffs for Band A customers, warning that such rates—now around N225/kWh—are unsustainable. Rising energy costs have forced companies to scale down production, raise prices, or relocate to more power-stable regions. For manufacturers whose margins are already squeezed by inflation and forex instability, the tariff hike could be the last straw. A failing grid Perhaps the most visible sign of collapse is, quite literally, the collapse of the national grid. Despite receiving over $4.36 billion in loans from the World Bank across a decade—much of which was earmarked for stabilising the power sector—Nigeria’s grid remains fragile.

    Data from the Nigerian Electricity Regulatory Commission (NERC) shows that the grid collapsed 93 times between June 2015 and May 2023. A single failure plunges swathes of the country into darkness, undermining productivity and shaking investor confidence. NERC explains that the grid is designed to operate within strict stability limits—voltage (330kV ± 5%) and frequency (50Hz ± 0.5%). Any significant deviation can trigger shutdowns across generating units, cascading into a full or partial system failure. “Electricity demand higher than supply causes frequency drops. When this goes unchecked, automated safety settings shut down generation units, worsening the imbalance,” NERC said.

    Industry data reveals that under former President Muhammadu Buhari, Nigeria’s national power grid collapsed three times in 2015, 28 times in 2016, 24 times in 2017, 13 times in 2018, and 11 times in 2019. Between 2020 and Buhari’s exit from office on May 29, 2023, there were 14 recorded grid collapses, suggesting a modest improvement. However, this trend did not hold. From June to December 2023 alone, the grid collapsed three more times. The pattern of instability continued in 2024, beginning with a system-wide collapse in February, reportedly triggered by failures across distribution companies, leading to prolonged blackouts in multiple regions.

    Additional collapses followed on March 28, April 15, July 6, August 5, October 14, 15, 19, and 22, as well as November 5 and 7, and December 11, 2024. This year, the grid suffered at least one collapse—on March 7, 2025. In response, the Minister of Power has outlined plans to attract private investment into grid infrastructure and to regionalise the national transmission system to reduce systemic risks. He cited the 70% remittance compliance by Lagos-based DisCos as evidence that improved infrastructure translates into better performance—especially when compared to their northern counterparts.

    Metering conundrum as a thorn in Nigeria’s power sector

    Metering remains a critical and unresolved issue within the Nigerian Electricity Supply Industry (NESI). While meters are essential for fair billing and effective revenue collection, the country’s metering gap currently stands at 6.2 million—a figure that continues to frustrate both consumers and operators. Several government-led initiatives aimed at closing this gap—including the National Mass Metering Programme (NMMP), Meter Asset Provider (MAP) scheme, Meter Acquisition Fund (MAF), and the Presidential Metering Initiative (PMI)—have yet to meet expectations. Despite the ambitious goal of deploying two million meters annually under the PMI, progress has been slow.

    A Special Purpose Vehicle (SPV) has been established to lead implementation, with N700 billion secured through the Federation Account Allocation Committee (FAAC). Procurement has begun for the delivery of 1.1 million meters. Meanwhile, the World Bank-supported Distribution Sector Recovery Programme (DISREP) targets the rollout of 3.2 million meters. The first batch of 75,000 units has already arrived, with a second batch of 200,000 expected this month. Yet, despite these efforts, metering remains a challenge that appears to have defied all known solutions. The lack of meters not only penalises consumers with estimated billing but also hampers the ability of DisCos to maintain financial viability. Until the metering deficit is addressed with sustained, transparent and scalable solutions, the broader goal of a reliable power supply will remain elusive.

    Sadly, both electricity consumers and distribution companies (DisCos) continue to suffer losses—consumers through unfair billing practices, and DisCos through revenue leakages. For millions of households across Nigeria, the unavailability of meters means being subjected to the controversial estimated billing system—often described by stakeholders as extortionate. For DisCos, the lack of adequate metering has become one of the key drivers of Aggregate Technical, Commercial and Collection (ATC&C) losses. These losses arise from their inability to accurately measure energy consumed and to collect full payments for services rendered. Metering, therefore, lies at the very heart of a sustainable and commercially viable electricity market. Accurate metering allows DisCos to properly account for the inflow and outflow of electricity across their networks, ensuring transparency and fairness in billing. It also guarantees a dependable revenue stream for electricity suppliers and improves customer trust in the system.

    Given that the cost of services provided by every actor in the electricity value chain—generation, transmission and distribution—is ultimately embedded in the consumer’s utility bill, the need for effective metering cannot be overstated. ATC&C losses represent a summation of billing inefficiencies due to energy not billed (technical and commercial losses) and uncollected revenue (collection losses). This metric is crucial for determining electricity tariffs and assessing DisCos’ performance. Yet, of the 13.5 million registered electricity customers in Nigeria, around 6.2 million—nearly half—remain unmetered, according to data from the Nigerian Electricity Regulatory Commission (NERC).

    Unfortunately, DisCos have been unable to independently finance or implement large-scale metering initiatives that could significantly improve cash flow and service delivery, and ultimately reduce ATC&C losses. Metering all end-use customers would not only phase out estimated billing but also improve billing accuracy and revenue collection, injecting much-needed liquidity into the sector and supporting broader infrastructure investments. Despite several government interventions, meter installation remains sluggish. Worryingly, NERC reported a 60.86% quarter-on-quarter decline in the meter installation rate in Q2 2024, with only 49,188 meters installed compared to 125,664 in Q1.

    Nonetheless, this modest effort pushed the national metering rate slightly from 44.79% to 45.43% within the same period. A breakdown of the installations in Q2 shows that 35,985 meters—or 73.16%—were provided through the Meter Asset Provider (MAP) framework. Meanwhile, only 264 meters were deployed under the National Mass Metering Programme (NMMP). The Vendor-Financed model accounted for 12,843 installations, while the DisCo-Financed model contributed just 96 meters. According to NERC, DisCos are expected to leverage all five approved metering frameworks under the 2021 MAP and NMMP Regulations (NERC-R-113-2021) to address their metering deficits. Yet, persistent challenges—chief among them financial constraints, logistics bottlenecks and regulatory delays—continue to hamper progress.

    To assist DisCos in closing the gap, the Federal Government has ramped up interventions. By December 2024, a total of 2,184,254 meters had been installed under the revised MAP scheme. The intervention aims to increase the national metering rate, eliminate arbitrary billing, strengthen local meter manufacturing, create jobs, and reduce revenue collection losses. To catalyse this process, an initial N200 billion was invested to improve NESI’s revenue collection. The NMMP initiative itself was structured in three phases: Phase 0 (Pilot) – one million meters funded by the Central Bank of Nigeria (CBN); Phase 1 – four million meters (not funded by CBN); Phase 2 – 1.5 million meters. Only Phase 0 received direct CBN support, with N59.28 billion earmarked for the installation of one million meters.

    As of the latest update, 89.96% of the allocated funds have been disbursed to the 11 DisCos for the procurement of 962,832 meters via 23 Meter Asset Providers. Despite these figures, the impact on households has been underwhelming. Metering remains a long-standing problem that defies quick fixes, and unless sustained and coordinated strategies are implemented, the sector may continue to lose both revenue and consumer confidence. Beyond the National Mass Metering Programme (NMMP) and the Meter Asset Provider (MAP) scheme, Nigeria’s power sector is witnessing renewed momentum through several concurrent interventions. Notably, the Presidential Metering Initiative (PMI), the World Bank-backed Distribution Sector Recovery Programme (DISREP), and the Meter Acquisition Fund (MAF) have together injected over N335 billion into the sector. As part of this drive, about 3.2 million meters are earmarked for distribution under the DISREP initiative, which is currently being implemented across the country.

    Under the MAF framework, N1.185 per kilowatt-hour of electricity sold to consumers is earmarked for meter funding. These funds are centrally collected and managed by a designated Fund Manager (FM) for all Distribution Companies (DisCos). DisCos can then draw from this central pool to procure meters through approved MAPs, using the accrued contributions. The creation of the MAF stemmed from lessons learned from the shortcomings of previous strategies, including the 2018 MAP Regulations and the 2021 National Mass Metering Regulations, both of which struggled to close Nigeria’s wide metering gap. In what appears to be another bold attempt to address the metering deficit, the Federal Government recently introduced the Presidential Metering Initiative (PMI).

    This initiative is underpinned by a N700 billion loan facility from the Federation Account Allocation Committee (FAAC), spread over 10 years at zero interest, with a two-year moratorium. The PMI aims to deliver 2.6 million meters while consolidating the efforts of the DISREP (World Bank), MAF (regulated by NERC), and FGNPower initiatives. The rollout commenced earlier this year. In August, the government announced that, in collaboration with sub-national entities, N100 billion had been raised for the procurement of prepaid meters under the PMI. Adelabu explained that widespread consumer distrust, driven by estimated billing, had led many customers to withhold payment. “Metering will bring transparency and accountability to the billing process,” Adelabu said.

    He described the situation as largely self-inflicted and stressed that sustained investment in metering infrastructure is key to resolving persistent challenges in the power sector. However, despite these efforts, data from the Nigerian Electricity Regulatory Commission (NERC) reveals modest progress. Between April and July, only 115,767 electricity customers were provided with meters. As of July, out of 13,293,739 registered electricity customers, only 6,053,497 had been metered. A month-by-month breakdown shows that: April: 23,724 customers metered; May: 8,733; June: 12,854; July: 70,456. The DisCos, though responsible for metering, have consistently cited funding constraints as a limiting factor. Metering penetration remained low throughout the review period, with NERC reporting: 44.67% in April; 45.39% in May; 45.43% in June; 45.54% in July. Among the DisCos, Ikeja Electric led in metering coverage with 73.13% in April; 76.25% in May and June; 76.64% in July. Abuja Disco followed closely with 61.19% in April; 70.02% in May; 70.17% in June; 70.48% in July.

    Policy activism draws applause

    Stakeholders have applauded the Federal Government’s renewed commitment to reforming the power sector. Energy policy expert, Igbinoba, commended President Tinubu’s administration for its “bold policy activism” since assuming office in May 2023. He cited landmark actions such as the enactment of the Electricity Act 2023, Nigeria’s commitment to the National Energy Compact unveiled at the Africa Energy Summit in Tanzania, and the release of two strategic policy documents: the National Integrated Electricity Policy and the Nigeria Integrated Resource Plan (NIRP 2024). According to Igbinoba, the government’s ability to drive these policy frameworks to Federal Executive Council approval and formal launch deserves high praise. “I commend the Tinubu administration for the strides it is making in the power sector. However, long-term stability and efficiency in the sector hinge on the full privatisation of key assets,” he stated. He argued that completing the privatisation of the Distribution Companies (DisCos)—which remain 40% government-owned—as well as the ten National Integrated Power Plants (NIPPs) managed by the Niger Delta Power Holding Company, and the Transmission Company of Nigeria (TCN), is imperative. “Without the political will to divest these assets to financially strong and technically competent private investors, the power sector will continue to falter. It will fail to provide the electricity needed to power local industries, improve service delivery, and boost Nigeria’s competitiveness both on the continent and globally,” he concluded.

  • How Electricity Act 2023 is rewiring the troubled power sector

    How Electricity Act 2023 is rewiring the troubled power sector

    Despite years of reform, Nigeria’s power sector has long struggled with inefficiency, debt and weak service delivery. But recent developments—driven by the strategic leadership—signal a turning point. From historic revenue gains to decentralised regulation, market restructuring and ambitious metering initiatives, the Nigerian Electricity Supply Industry is undergoing a quiet revolution, offering a glimmer of hope for consumers long weary of darkness and disappointment, reports JOHN OFIKHENUA.

    Revenue generation remains the cornerstone of sustainability and growth in any industry, and the Nigerian Electricity Supply Industry (NESI) is no exception. A significant stride in this direction has been achieved—thanks to the strategic leadership of the Minister of Power, Chief Adebayo Adelabu.

    Last year, in collaboration with him, the Nigerian Electricity Regulatory Commission (NERC) introduced a tariff increase for Band A customers—who represent 15 per cent of NESI’s consumer base. Although the policy initially sparked public outcry, it has proven impactful. At the Ministerial Press Briefing Series in Abuja last month, Adelabu announced that the reform yielded a remarkable N700 billion boost in market revenue—a 70 per cent jump from N1 trillion in 2023 to N1.7 trillion in 2024. He further disclosed that the increased earnings significantly reduced the government’s subsidy burden, trimming it from N3 trillion to N1.9 trillion within the review period.

    His words: “Furthermore, it is evident that, due to our transformative tariff reforms, the market has generated an additional N700 billion in revenue, reflecting a 70% increase. This results from the cost-reflective tariff adjustment for Band A customers. Market revenue for 2024 rose from NGN 1 trillion in 2023 to NGN 1.7 trillion. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20%. This has positively impacted the reduction of the government-subsidised tariff shortfall by 35%, decreasing it from NGN 3 trillion to NGN 1.9 trillion.  According to the minister, it was a demonstration that financial viability and service delivery can coexist harmoniously.”

    A few weeks later, the Minister hinted at the complete removal of electricity subsidies to pave the way for a fully cost-reflective tariff regime. He urged Nigerians to brace for the shift, stressing that subsidies were no longer fiscally sustainable. Should the government succeed in eliminating the subsidies, the projected N2.5 trillion budgeted for subsidy payments in 2025 could be redirected to critical infrastructure development. In terms of improving market liquidity, the Nigerian Electricity Liability Management Company (NELMCO) made commendable progress in debt recovery. Its efforts led to the reconciliation and reduction of debts owed by Federal Ministries, Departments, and Agencies (MDAs) to the Abuja Electricity Distribution Company (Abuja DisCo), cutting the figure by 47.4 percent—from N15.53 billion to N8.17 billion.

    Another major milestone in the sector was the operationalisation of the Electricity Act (EA) 2023, which decentralised the electricity market. The Act empowered the Nigerian Electricity Regulatory Commission (NERC) to cede regulatory authority to states, allowing them to establish their own electricity regulatory bodies. This reform has spurred states and independent power producers into action. By the end of Q1 2025, NERC had successfully transferred regulatory oversight to 11 states: Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, and Plateau. Of these, seven states—Enugu, Ekiti, Ondo, Imo, Oyo, Edo, and Kogi—have completed the transition, while four others are still in the process.

    For years, stakeholders in the power sector vigorously advocated for the unbundling of the Transmission Company of Nigeria (TCN). However, due to a perceived lack of political will or clarity on implementation, no concrete steps were taken—until the enactment of the Electricity Act (EA) 2023 empowered the current administration to act. In line with the Act, the Federal Government established the Nigerian Independent System Operator (NISO), which has now commenced operations.

    According to the Minister of Power, Chief Adebayo Adelabu, the creation of NISO represents a significant milestone in Nigeria’s power sector reform. As mandated by the Electricity Act 2023, TCN is to be split into two distinct entities: the Transmission Service Provider (TSP) and the National Independent System Operator (NISO). This separation is designed to ensure operational clarity and independence between system operations and market functions. While previous administrations attempted this reform without success, the Tinubu administration achieved a breakthrough with the formal inauguration of NISO’s board by Vice President Kashim Shettima on April 8. NISO is now responsible for independently managing grid operations to improve efficiency and reliability.

    READ ALSO: Security sector at Tinubu’s mid-term

    At the distribution end of the electricity value chain, power distribution companies (DisCos) are the closest to consumers. One of their most persistent challenges, however, has been inadequate metering and poor revenue collection. To tackle this, the Federal Government has launched the Presidential Metering Initiative (PMI), aimed at closing the country’s metering gap and ensuring transparent billing and enhanced revenue recovery. The PMI is backed by a N700 billion allocation from the Federation Accounts Allocation Committee (FAAC) and will be implemented through a newly established Special Purpose Vehicle (SPV), with a fully constituted board. The initiative aims to deploy 1.1 million meters by the end of 2025, followed by 2 million meters annually over the next five years. Procurement processes for the meters are already underway.

    In addition to domestic initiatives, the metering drive has received a significant boost through the World Bank-funded Distribution Sector Recovery Program (DISREP). Under the program, over 3.2 million meters will be procured and installed nationwide, alongside the deployment of meter data management solutions to enhance DisCos’ operational performance. The first batch of 75,000 meters under the International Competitive Bidding 1 (ICB1) arrived in April, with an additional 200,000 meters expected by May 2025.

    Just last week, Minister Adebayo Adelabu disclosed that the ongoing nationwide metering efforts were already yielding tangible results. He noted that the mass metering initiative across military barracks had generated N769.1 million in revenue between August 2024 and April 2025. The project, beyond revenue generation, aims to improve electricity supply and foster better energy consumption management within military installations. Meanwhile, distribution companies are undergoing a major restructuring process to enhance service delivery and operational efficiency. According to the minister, changes in ownership and management are underway, while the Nigerian Electricity Regulatory Commission (NERC) is strengthening the performance matrix to ensure improved accountability among the DisCos.

    The generation sub-sector of the Nigerian Electricity Supply Industry (NESI) has also recorded remarkable growth within the review period. On March 2, 2025, Nigeria reached a record-breaking available generation capacity of 6,003 megawatts (MW)—a historic first. Just two days later, on March 4, 2025, the country achieved a peak generation evacuation of 5,801.44 MW, with an accompanying daily energy delivery of 128,370.75 megawatt-hours (MWh). These milestones reflect a steady upward trend, as the average daily power generation and distribution in Q1 2025 stood at 5,700 MW, compared to 4,100 MW in Q3 2023—an increase of 1,600 MW, or nearly 40%, since Adelabu assumed office.

    Further gains have come from the revitalization of previously dormant assets. The new management of the Niger Delta Power Holding Company (NDPHC), in collaboration with the ministry, has successfully restored 232.5 MW of idle capacity from the Omotosho and Benin power plants. Further demonstrating its nationwide impact, the Niger Delta Power Holding Company (NDPHC) has implemented major infrastructure upgrades across the electricity transmission network.

    According to Adelabu, 14 transmission lines have been constructed, upgraded, or newly installed across various states. Notable among these are the rehabilitation of the existing 2 x 132kV transmission line bay extension at the TCN substation in Papalanto, Ogun State, and the ongoing 65km 330kV double-circuit transmission line between Afam and Ikot Ekpene (Lot 4A). Beyond the grid, off-grid and interconnected mini-grid projects have brought clean, reliable electricity to thousands of households across Plateau, Cross River, Niger, Oyo, and Osun States. These include: a 550KWp solar mini-grid in Bakin Ciyawa and Kwande communities, Plateau State; a 440KWp mini-grid in Cross River State; a 990KWp system powering 3,900 households in Niger State; a 510KWp solar hybrid mini-grid in rural communities in Osun State.

    In terms of foreign investment and partnerships, Adelabu revealed that Sun Africa Energy and Skipper Electric have expressed strong interest in Nigeria’s power sector, particularly in renewable energy generation and grid expansion. Their proposals, currently under review, aim to integrate solar power into the national grid, diversifying energy sources away from traditional hydro and thermal generation and strengthening energy security. Efforts are also underway to maximise output from Nigeria’s major hydro assets. Of the 700MW capacity at Zungeru Hydropower Plant, 550MW is currently being evacuated, while the Kashimbila Plant is fully evacuating its 40MW capacity. Looking ahead, development has commenced on the Makurdi Hydropower Project, which has the potential to generate up to 1,500MW, and the revitalization of the Kaduna Thermal Plant, a 215MW facility that had been inactive for six years but is now 87% complete and expected to be operational by the end of the year.

    Meanwhile, feasibility studies for the concession of the abandoned 10MW Katsina Wind Farm are underway in partnership with the Katsina State Government and private investors. Additionally, the ministry is exploring wind energy potential along Nigeria’s coastal belt in tandem with the Lagos-Calabar Coastal Highway project, as part of efforts to diversify the country’s energy mix through sustainable sources.

    In terms of power generation, Nigeria holds an impressive 14GW hydropower potential, yet currently utilises only about 20% of that capacity. To bridge this gap, the Federal Government is developing a comprehensive hydropower plan focusing on small dams under the Sustainable Power and Irrigation in Nigeria (SPIN) program. Spearheaded by the Minister of Power, Chief Adebayo Adelabu, feasibility studies are currently underway—particularly along strategic development corridors such as the Badagry to Sokoto Highway—to harness small hydro resources more effectively.

    However, despite these promising initiatives, the electricity sector remains burdened by a substantial financial crisis. A debt overhang of over N4 trillion continues to stifle progress, severely limiting the operational capacity of Generation Companies (GenCos). Many GenCos have expressed their frustration, warning of possible shutdowns if the liabilities are not addressed. In response, Adelabu has committed to settling 50% of the outstanding debt by the end of 2025—a significant step toward restoring investor confidence and operational stability in the sector.

    Another critical challenge lies in the reluctance of Distribution Companies (DisCos) to invest in infrastructure upgrades. This hesitancy is largely attributed to the absence of a fully cost-reflective tariff regime, which undermines returns on investment. Simultaneously, a significant portion of the public continues to view electricity as a government-provided social service—a mindset rooted in the legacy of the defunct National Electric Power Authority (NEPA). The issue is further compounded by the widespread lack of metering. Many customers, burdened by estimated billing practices they believe grossly inflate their actual usage, have resorted to energy theft and other forms of self-help. The DisCos’ inability or unwillingness to fully meter their customers remains a major impediment to accurate billing and sustainable revenue generation.

    While commendable strides have been made in policy reform and infrastructure development, consumers remain largely unimpressed. The public continues to demand tangible improvements in actual power supply rather than abstract milestones like peak generation or theoretical capacity. For most Nigerians, the true measure of success in the electricity sector lies in consistent, reliable access to electricity—not in projections or promises.

  • German firm launches lighting, solar power solutions

    German firm launches lighting, solar power solutions

    A new firm, Wecass Braun has launched its presence in Nigeria, unveiling its latest durable German lighting and solar technologies. 

    At the brand opening ceremony, and exhibition of its products in Onipetesi Estate, Ikeja area of Lagos, the firm explained that its solar power solution products were durable, reliable, cost-effective, and could be monitored and controlled from a central control room. 

    In his speech, International CEO, Wecass Braun, Engr. André Braun noted that the alternative power solutions are environmental friendly, and the latest lighting and solar technologies can be monitored and switched from a control room. 

    Braun stated that said he completed his training in several electrical and electronic professions in Germany, as well as also trained as a master electrician. 

    While showcasing the firm’s products, Braun said: “We look on projects, and find the right solutions. Look at our streets lights. We’ve a central control room especially for them. We need the right product for this time. Our solar products also last a long time. They are durable. German products are of great quality.”

    READ ALSO: Five Africa’s loudest countries in 2025

    He further noted that the company has brought the right energy products on the world market as experts in the field to add value to clients in the country.

    Braun said: “Nigeria needs the latest and most sustainable technologies. These must be future-proof for an emerging and growing nation like Nigeria. We want customers and infrastructure programmes across Nigeria to rely on sustainable and future-proof products.

    “We want to provide our employees and other people with similar training here. Just like in Germany, we will carry out the theoretical part of the training in our training room next door. And the special thing about our open showroom is that it also serves as a practical venue for our employees and students. The practical part is taught on the exhibits. This means that our customers can rely on us to act professionally even when problems arise.

    “For example, we have here our Waterproof Solar Carport This is a sample and can be extended in modular design. This can be extended or even manufactured in double-sided orientation. Or our great historical lights over there, with the latest LED technology. 

    “You never have to replace the LEDs, just like with these beautiful bollard lights. Our battery cabinets with integrated inverters are compact and long-lasting. We will be happy to show you more later during small guided tours.”

    The country’s CEO, Wecass Braun, Engr. Forster Onyeka Edward said: “Our firm is practical oriented in its ideas. André Braun has the practical ideas. What we are doing here is from our hearts. We want to move Nigeria forward.

    “Technology is very smart. Nobody knows what the prices of fuel may rise up to in the next couple of years. But the solar solution helps to provide alternative energy. That’s why we are bringing better technology. It will help to save cost of spending on fuel.”

    Speaking on the affordability of the products and its training services, Edward said: “We are starting off gradually. All infrastructures installed in the company’s office here are evidence of our work. The people who will be trained are those who will also work for us. We are putting the modules together. The training will commence in September. 

    “For the training, there will be online training for low-level persons. The trainees will also be taken through practical processes.”

    Edward affirmed that goal of the company is to train enough people to open offices in other states to offer the same service in other parts of the country while support will come from the headquarters in Lagos.

  • Think Tank backs Komolafe on $600b lifeline for Africa’s energy needs

    Think Tank backs Komolafe on $600b lifeline for Africa’s energy needs

    The African Centre for Energy Investment and Policy (ACEIP) has thrown its weight behind the recent call by Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for the continent to secure at least $600 billion annually in upstream oil and gas investment, a move the centre described as a realistic and urgent lifeline for the continent’s energy security.

    In a statement issued on Thursday and signed by its Executive Director, Dr. Amaka Chima Ezeanochie, ACEIP said Komolafe’s message at the 2025 Africa Energies Summit in London was a timely intervention that captures the seriousness of Africa’s energy demands in a world pushing aggressively toward decarbonisation.

    “We must stop pretending that Africa can leapfrog into renewables without first solving its foundational energy access crisis. Komolafe’s $600 billion call is not an exaggeration — it is the minimum needed if we are to power homes, industries, hospitals and schools across the continent. This is not a luxury. It is a lifeline,” Ezeanochie said. 

    Referencing BP’s 2024 Energy Outlook and the International Energy Forum’s forecast of a 30 percent surge in African energy demand by 2040, the Centre said Komolafe was right to warn against a one-size-fits-all global energy narrative.

    “There is a dangerous assumption that what works for Europe or North America must work for Africa. But Africa’s energy reality is unique. We are the least electrified continent, and we have a right to use every available resource — including oil and gas — to meet our development goals,” Ezeanochie asserted. 

    She said Komolafe’s emphasis on investment flows into Nigeria’s upstream sector was especially critical, given the country’s proven reserves and recent regulatory milestones.

    Read Also: Nigeria attracts global investors as Komolafe showcases upstream reforms in London

    “Nigeria has over 210 trillion cubic feet of gas and 37 billion barrels of oil. These are not stranded assets. With the right investment, they are the building blocks of industrial growth, job creation, and regional energy integration. We’re not talking theory — we’re talking about powering lives and unlocking economic value,” she noted. 

    ACEIP praised NUPRC’s implementation of the Petroleum Industry Act (PIA), highlighting the reforms as a catalyst for investor confidence and operational momentum in Nigeria’s upstream sector.

    “Between 2021 and 2025, Nigeria’s rig count grew from eight to over 36 — and we expect it to hit 50 by year-end. This is not by accident. It’s the result of deliberate reforms, investor outreach, and improved access to reliable data. The world is watching, and the numbers are proving Nigeria’s seriousness,” Ezeanochie said. 

    She also commended Nigeria’s seismic data acquisition campaign through the Awalé Project, noting that over 11,000 square kilometres of 3D seismic data had been gathered and more than 10,000 well records digitised under the National Data Repository.

    “Nigeria has ended the era of blind drilling. With quality data at their fingertips, investors can make informed decisions quickly and confidently. This kind of transparency and preparedness should be the standard across Africa’s resource-rich economies.”

    Dr. Ezeanochie warned that global finance institutions must stop applying blanket restrictions on oil and gas investments in Africa, especially in light of the continent’s energy poverty levels and low historic emissions.

    “Africa is not asking for charity, we are asking for fairness. Denying financing for upstream projects in Africa while funding gas infrastructure in Europe is hypocrisy. You cannot ask us to power a continent of 1.4 billion people on hope and solar panels alone,” Ezeanochie declared. 

    She added that Nigeria’s approach under the NUPRC offers a blueprint that other African countries can learn from as they position themselves to attract capital.

    “Nigeria has moved from rhetoric to execution. Transparent licensing rounds, policy clarity, and digital innovation have changed the game. Komolafe’s leadership has repositioned Nigeria as not just resource-rich, but reform-ready.”

    The think tank concluded by urging African governments to unify behind a continental energy investment strategy while calling on global actors to stop framing fossil fuel use in Africa as incompatible with climate goals.

    “We can fight climate change and still grow our economies. What Africa needs is patient capital, trusted partnerships, and a seat at the table where our future is being discussed. Komolafe has set the tone — now the world must listen,” Ezeanochie emphasized.

  • Tinubu is committed to the Nigeria–Morocco $25 billion gas project

    Tinubu is committed to the Nigeria–Morocco $25 billion gas project

    …Says Senator Jimoh at the African parliament in Casablanca, Morocco

    President Bola Tinubu is committed to the $25 billion gas pipeline project between Nigeria and Morocco, Jimoh Ibrahim, the Senator representing Nigeria at the executive session of the African Parliament, stated yesterday in Casablanca. Ibrahim mentioned that President Tinubu would soon review all abandoned projects to ensure their completion, with the Nigeria–Morocco $25 billion gas project being first on the dashboard of the Nigerian government’s priority initiatives. According to Ibrahim, the gas project is set to have a capacity of 30 billion cubic metres of natural gas per year and a length of 5,660 km.
    Senator Ibrahim noted that the pipeline would traverse 13 African countries, including Nigeria, Benin, Togo, Ghana, Ivory Coast, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, Mauritania, and Morocco, all with a central gas supply from Nigeria.

    Senator Ibrahim explained that the project is expected to create thousands of jobs, boost industrial and digital development, and contribute to a more sustainable energy future for the participating countries. This project will be a breakthrough for both nations, as Morocco will benefit from supplying European countries. Ibrahim called for the Atlantic to be opened to create more opportunities. He urged Morocco to revise its visa policy, allowing Nigerian visitors to enter without visa restrictions, given the level of opportunity that the new investment will generate for both countries.

    Read Also: ‘Tinubu has adopted bold transformation agenda across oil, gas sector’

    Senator Ibrahim said the project is currently in the feasibility study and route planning phase, with discussions ongoing between relevant authorities and stakeholders. The final investment decision was initially planned for 2023 but postponed to 2025.

    Senator Ibrahim stated that the Nigerian Senate President, Godswill Akpabio, is already working on significant legislative support for President Tinubu to eliminate, through legislation, any converging complexities that may obstruct the successful implementation of the project.

    The Executive of the African Parliament Union was very excited about the developments regarding the Nigeria–Morocco $25 billion gas project, as briefed by Senator Ibrahim, who represented the Nigerian Senate President at the executive meeting in Casablanca today.