The Federal Government has successfully issued a N501 billion inaugural bond under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100 per cent subscription from pension funds, banks, asset managers and other investors. It also marked a significant step towards resolving legacy debts, restoring liquidity and strengthening confidence in the Nigerian Electricity Supply Industry (NESI).
The initiative is designed to address long-standing payment arrears owed to power generation companies, which for over a decade constrained liquidity, weakened balance sheets and discouraged investment across the power sector value chain.
The signing follows the successful completion of Series 1 Power Sector Bond Issuance by Nigeria Bulk Electricity Trading (NBET) Finance Company Plc. Series 1 issuance closed at N501 billion, comprising N300 billion raised from the capital markets and N201 billion in bonds allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda.
Under the Programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with power generation companies. To date, five power generation companies representing 14 power plants nationwide: First Independent Power Limited (FIPL); Geregu Power Plc; Ibom Power Company Limited; Mabon Limited and Niger Delta Power Holding Company Limited (NDPHC)- have executed Settlement Agreements with NBET. The total negotiated settlement amount for these companies stands at N827.16 billion, to be paid in four phased instalments.
Proceeds from Series 1 issuance will fund the first and second instalment payments to participating power generation companies with signed settlement agreements, estimated at N421.42 billion, representing approximately 50 per cent of the total negotiated settlement amount. The payment for this initial phase will be made through a mix of cash and notes.
When completed, the programme will impact 4,483.60MWh/h of electricity generation capacity by GenCos, effectively finalising settlement of payments for 290,644.84GWhr of electricity billed since February 2015 and providing a strong foundation for new investments into capacity enhancement and expansion by companies serving 12.03mn active registered customers across the country.
Speaking at the bond issuance signing ceremony which held at the Grand African Ballroom, Lagos Continental Hotel, Victoria Island, Lagos, yesterday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the ceremony marked a critical turning point in the collective efforts to address long-standing structural challenges in Nigeria’s power sector and to lay a stronger foundation for its long-term sustainability.
Edun, who was represented by the Director-General, Debt Management Office, Patience Oniha, explained that for many years, legacy debts owed to generation companies (GenCos) have constrained liquidity across the electricity value chain, weakening balance sheets, discouraged investment and ultimately limited the sector’s ability to deliver reliable power to Nigerian homes and businesses.
According to him, the federal government recognised that resolving these legacy issues was not optional but essential, giving rise to the Presidential Power Sector Debt Reduction Programme (PPSDRP) and subsequently to the N4 trillion Power Sector Multi-Instrument Issuance Programme, designed as a structured, credible, and fiscally responsible mechanism for settling these obligations.
“This transaction sends a clear and reassuring signal to the power sector and to the wider economy that the Federal Government is committed to honouring its obligations. We are prepared to deploy innovative financial solutions to resolve systemic challenges and we remain focused on restoring liquidity, confidence, and discipline across the electricity market. By settling legacy debts in a structured manner, we are enabling Generation Companies to stabilise operations, improve maintenance and attract new investment- all of which are critical to improving power supply nationwide,” Edun said.
He disclosed that the programme is anchored on strong governance, transparency and fiscal prudence. The Ministry of Finance, working closely with NBET and other stakeholders, remains committed to ensuring that this initiative supports sector reform while safeguarding macroeconomic stability.
Edun was emphatic that a sustainable power sector is not just an energy objective, but an economic imperative because reliable electricity underpins industrial growth, job creation, and improved quality of life for millions of Nigerians.
In similar vein, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, stated that the programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms.
She noted that the country’s electricity sector has been constrained not by lack of demand or installed capacity, but by unresolved legacy liabilities and chronic liquidity shortfalls. Those pressures, she argued, weakened balance sheets across the value chain, constrained gas supply, reduced plant availability and ultimately limited the pace at which electricity could be delivered reliably to homes and businesses.
Aware of this, Verheijen said the President Bola Tinubu administration conviction of having a viable power sector led to the establishment of the Presidential Power Sector Debt Reduction Programme, chaired by the Minister of Finance/Coordinating Minister of the Economy and technically led by her office.
“This Programme was not conceived as a bailout. It is a balance-sheet reset. Its purpose is straightforward: to clear verified legacy obligations, restore liquidity, and re-establish the conditions under which operators can plan, operate, and invest on commercial terms. Over the past several months, we have worked closely with the Ministry of Finance, NBET, NERC, and power generation companies to reconcile claims and negotiate settlements based strictly on verified obligations. Today’s signing marks the outcome of that process.
“Fourteen generation companies have executed Full and Final Settlement Agreements, with a total negotiated value of approximately N827 billion. These agreements reflect discipline, compromise, and a shared commitment to closing the chapter on legacy arrears,” Verheijen said.
Therefore, she said, resolving these liabilities restores liquidity across the value chain, strengthens payment certainty for gas suppliers and creates the financial headroom required for operators to stabilise assets, improve availability and plan new investment.
Also speaking at the signing ceremony, the NBET Managing Director, Johnson Akinnawo, described the programme as a historic and defining moment for Nigeria’s power sector.
“This historic programme received the resolute approval of President Bola Tinubu and the Federal Executive Council. Mr. President’s decisive endorsement is not just a procedural step; it is the bedrock of this ambition. It signals the highest level of commitment to the total revitalisation of our nation’s power sector,” Akinnawo said, adding that the development would strengthen market disciplines while enabling growth across generation and the other segments of the electricity value chain.
Akinnawo stressed the broader significance of reliable electricity for national development, saying, “Reliable electricity is not just an enabler of economic activity. It is the backbone of national development, social advancement and global competitiveness.”
Group Managing Director, Sahara Power Group, Kola Adesina, who’s conglomerate owns five power plants, said: “Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made. Because we were being owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Ahmed Tinubu’s commitment in resolving the legacy issues and I can say that once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant. On behalf of the Generation Companies, I’d like to thank the President for this resolution.”
By clearing historic arrears, the programme is expected to improve liquidity for power generation companies, strengthen their ability to meet operating and debt obligations, unlock new investment across the sector and support more reliable electricity supply to homes and businesses. It also reinforces fiscal discipline through validated claims, negotiated settlements and transparent capital market financing.
CardinalStone Partners Limited, an Investment banking firm, led the consortium of appointed professional parties as Lead Financial Adviser and Lead Issuing House to successfully execute the Series 1 Bond Issue, working closely with NBET that acted as Sponsor on the Transaction, and the Office of the Special Adviser on Energy that led the settlement negotiations and engagements with the Generation Companies.
The Federal Government has successfully raised ₦501 billion through the inaugural bond issuance under the Presidential Power Sector Debt Reduction Programme (PPSDRP), achieving 100 per cent subscription from pension funds, banks, asset managers and other investors.
The landmark issuance marks a major step towards clearing long-standing debts in the Nigerian Electricity Supply Industry (NESI), restoring liquidity across the power value chain and strengthening investor confidence in the sector.
The PPSDRP, championed by President Bola Ahmed Tinubu, is designed to address legacy payment arrears owed to power generation companies (GenCos), which for more than a decade constrained liquidity, weakened balance sheets and discouraged fresh investment.
Speaking at the bond issuance signing ceremony in Lagos on Tuesday, the Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the programme as “a decisive reset of the electricity market,” combining debt resolution with broader financial and structural reforms.
According to a statement made available to journalists at the State House, by the Office of the Special Adviser to the President on Energy, the signing followed the successful completion of Series 1 Power Sector Bond Issuance by NBET Finance Company Plc, which closed at ₦501 billion.
Of this amount, ₦300 billion was raised from the capital markets, while ₦201 billion in bonds was allotted to participating power generation companies, reflecting strong investor confidence in the reform agenda.
Under the programme, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with GenCos.
Five companies; First Independent Power Limited, Geregu Power Plc, Ibom Power Company Limited, Mabon Limited and Niger Delta Power Holding Company Limited, representing 14 power plants nationwide, have so far executed settlement agreements with the Nigerian Bulk Electricity Trading Plc (NBET).
The total negotiated settlement for the five companies stands at ₦827.16 billion, to be paid in four phased instalments.
Proceeds from the Series 1 bond will fund the first and second instalments, estimated at ₦421.42 billion, representing about 50 per cent of the total settlement amount, to be paid through a mix of cash and notes.
Reacting to the development, Group Managing Director of Sahara Power Group, Kola Adesina, said the programme had restored confidence in the sector and unlocked fresh investment.
“Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made.
“Because we were being owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Ahmed Tinubu’s commitment in resolving the legacy issues, and I can say that once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant”, Adesina said.
He added, “on behalf of the Generation Companies, I’d like to thank the President for this resolution.”
By clearing historic arrears, the PPSDRP is expected to improve liquidity for GenCos, strengthen their capacity to meet operating and debt obligations, unlock new investment and support more reliable electricity supply to households and businesses.
The programme also reinforces fiscal discipline through validated claims, negotiated settlements and transparent capital market financing.
When fully completed, the programme is projected to impact 4,483.60MWh/h of electricity generation capacity and finalise settlement for 290,644.84GWh of electricity billed since February 2015, laying a foundation for capacity expansion by companies serving over 12 million registered electricity customers nationwide.
Verheijen acknowledged the support of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Power, Adebayo Adelabu, as well as key institutions including the Debt Management Office, the Central Bank of Nigeria and the National Pensions Commission.
“The Federal Government reaffirms its commitment to disciplined implementation of the programme. We look forward to the participation of other power generation companies as part of our broader reforms aimed at building a financially sustainable electricity market capable of supporting Nigeria’s long-term economic growth”, Verheijen said.
A string of acquisitions is reshaping the power sector in a momentum scale that underlines the reforms and prospects of Nigeria’s most talked about sector. In this report, Deputy Group Business Editor, Taofik Salako, examines the implication of the biggest takeover in the electricity sector
There is a universal consensus on the importance of private capital inflows in the resolution of the Nigerian power problem. Finance, public and private, stakeholders agreed, is the linchpin to uncoil the long wire to power every house and business.
A recent United Nation Development Programme (UNDP) report on the Nigerian power sector identified finance as the key to unleash the full potential of the transformative initiatives by the government over the past two and half years. Starting from the landmark June 8, 2023 signing into law of the Electricity Act 2023 by President Bola Tinubu to the institutionalisation of the National Integrated Electricity Policy (NIEP) in May 2025, the power sector has been a focus of intense reforms by the government. These reforms- across generation, transmission, distribution and retailing, have shown appreciable results. The Energy Commission of Nigeria acknowledged that several initiatives in recent period have seen the country’s electricity supply rising by 50 per cent, from historic 4,000 megawatts to 6,000 megawatts. But the gap is still wide and finance is the key.
“For the reforms in the sector to succeed, financing is key. Public finance alone will not solve the sector’s challenges, hence leveraging private sector capital is crucial,” the UNDP report stated. The NIEP also underlined that significant capital injection from the private sector is necessary for the success of the power sector reforms. The Energy Commission of Nigeria estimates that for every household to have affordable access to electricity, Nigeria must generate 40,000 MW.
At the recent Mission 300 summit, President Tinubu underlined the importance of private, public partnerships in achieving mass electrification of Nigeria and other African countries. He estimated that Nigeria would require an investment of $23.2 billion for last-mile electrification, including contributions from the public and private sectors. This implies that existing and new investors must find the power sector attractive enough for huge capital investments.
Major acquisitions in recent weeks appear to set up the Nigerian power sector as the thematic segment for the government’s 2026 consolidation agenda. In one instance, Transgrid Enerco Limited completed acquisition of 60 per cent equity stake in Eko Electricity Distribution Plc (EKEDC), the first market-driven acquisition of a Nigerian electricity distribution company since the power sector privatisation. With a large swathe of industrial, commercial and high-brow residential areas across Lagos and Ogun States, EKEDC is one of Nigeria’s largest electricity distribution companies (Discos) and generally regarded as of strategic importance to the nation’s economic growth.
The acquisition was funded by debt and equity financing, underlining the chain of private capital inflows. Chairman, Transgrid Enerco Limited, Engr. Olubunmi Peters, said the acquisition reflected renewed confidence in Nigeria’s power sector.
He said: “This transaction shows that Nigeria’s electricity distribution sector can attract long-term capital when there is a clear focus on operational excellence and disciplined execution”.
Private equity comes to the market
But the biggest transaction was the acquisition of the publicly listed Geregu Power Plc. Valued at nearly N3 trillion and currently contributing more than one-tenth of electricity to national grid, Geregu Power has all the trappings of an industry leader. The first power generation company (GenCo) to be listed on the stock market, Geregu Power interlinks national importance with private corporate growth and value creation. As such, the acquisition has been described as the most consequential acquisition in the Nigerian market in recent period. In a regulatory filing at the Nigerian Exchange (NGX), the board of Geregu Power stated that the company’s majority shareholder, Amperion Power Distribution Company Limited, owned by billionaire businessman, Femi Otedola, had undergone a restructuring of its ownership following a share sale and acquisition concluded on December 29, 2025. As a result of the transaction, MA’AM Energy Limited acquired 95 per cent equity interest in Amperion Power Distribution Company, thus the indirect controlling interest in Geregu Power previously held by Calvados Global Services Limited and Otedola was transferred to MA’AM Energy Limited. While the transaction did not involve the direct sale or transfer of shares of Geregu Power, the change in the ownership of the company’s majority shareholder resulted in a change in the ultimate beneficial ownership of 77 per cent of Geregu Power’s issued share capital.
The transaction was reportedly valued at $750 million or about N1.1 trillion. The acquisition was financed by a consortium of Nigerian banks with Blackbirch Capital as the financial adviser. This further underlined the strong private capital inflows into the power sector and enhanced investment assessment for the sector.
With the change in beneficial ownership, the Femi Otedola-led board resigned immediately, paving the way for the appointment of a new board of directors by MA’AM Energy. While MA’AM Energy, an Abuja-based integrated energy company engaging in electricity generation and supply, energy trading, and marketing, has maintained a relatively low public profile, market analysts said its ability to close one of Nigeria’s largest private equity deal and put together consortium of institutional financiers was an indication of its strong presence and confidence in the energy sector.
The new board of director also represented a veritable intersection of public influence, governance, finance, technical experience and compliance. The new board is led by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current Senator representing Zamfara West. Yari, a former chairman of the highly influential Nigerian Governors’ Forum, holds MSc in Public Administration, Finance and Investment Management from the University of Salford and a Certificate in Leadership and Change from the London School of Economics, in addition to other foundational education.
Other non-executive directors included Abdulkadeer Njiddah, Principal Partner at Abdulkadeer & Co. (Chartered Accountants) who holds PhD in Accounting and Finance and a fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and Institute of Internal Auditors of Nigeria (FIIA); Usman Mohammed, an expert in infrastructure and private financing solutions and a chartered accountant with PhD in Finance and over 30 years’ experience in power sector utility diagnosis, reform, and transformation and Mohammed Sani Jaafaru, who holds MBA in Finance from Strayer University, Washington D.C and currently Chief Operations Officer at Advance Link Petroleum Limited.
Also on the board as non-executive directors were Neka Adogu, a banker and financier of more than two decades, including as a General Manager at Access Bank Plc, Nigeria’s largest bank by assets and Mahmud Magaji, a Senior Advocate of Nigeria (SAN) and member of the Federal Judicial Service Commission with specialty in international dispute resolution. Meanwhile, outgoing Chief Executive Officer, Mr Akin Akinfemiwa and Deputy Chief Executive Officer, Dr. Julius Omodayo-Owotuga were retained to facilitate smooth management transition, working with the newly appointed board.
A new power play
Experts said the Geregu Power acquisition might be the beginning of a new era for the Nigerian power sector.
Managing Director, GTI Capital, Mr. Kehinde Hassan, said the transaction, valued at approximately $750 million, set a new benchmark for GenCo valuations in Nigeria.
“It is likely to influence future mergers and acquisitions, stimulate private equity interest, and reshape asset pricing across the power sector.
“Beyond Geregu, the deal carries broader implications for the Nigerian power industry. A $750 million investment in a sector often labeled “high-risk” sends a powerful signal about the underlying potential and long-term value of Nigeria’s electricity market. This could catalyze further GenCo and DisCo acquisitions, attract renewed interest from domestic institutional investors, and spur recapitalization efforts across the value chain,” Hassan, a Fellow of the Institute of Chartered Accountant of Nigeria (ICAN) and Chartered Institute of Stockbrokers (CIS), said.
He also noted the timing of the acquisition. According to him, the acquisition coming at a time when the Federal Government is planning a N4 trillion power-sector liquidity fund, further positions the sector as increasingly private‑equity friendly and primary target for deeper financial participation.
Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said stakeholders were optimistic that the new owners would deploy the necessary technical and financial capability to increase the capacity and efficiency of the company to enable it meets its mandate to all stakeholders.
He said: “The company was quite profitable under the previous owners, though some investors felt its price multiple was too high. The new owners will need to prove that its stock price is well justified”.
Managing Director, Vetiva Securities Limited, Mr. Abiodun Adeniran, said while the private equity nature off the deal did not elicit any major immediate market reactions, market expectations would be subject to the expertise that MA’AM Energy is bringing on board and the impact on operations and financial performance going forward.
“This is just unfolding and the market is patiently waiting for the new strategic direction,” Adeniran said.
Hassan also echoed the same sentiment. According to him, with the shift in ownership, the market is expected to adopt a cautious, observant stance as it awaits clarity on the new owners’ strategic direction.
He noted that while a key focus for investors would be governance and management continuity, stakeholders would be watching closely to see whether the new leadership will maintain Geregu’s strong dividend culture, operational efficiency and commitment to expansion pipeline, including the proposed Geregu II and III projects.
Managing Director, HighCap Securities, Mr. David Adonri, said stakeholders are eagerly waiting for the new board’s strategic plan.
For minority shareholders, while the deal signaled a major positive momentum for the power sector, the underlying importance would be determined by value creation. With a free float of about 19 per cent, Geregu Power is a company of public concern.
President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the size and nature of the deal were quite symbolic for the Nigerian economy, the power sector and the capital market.
He noted that with the broad experience of the new board and the strategic assets under Geregu, the market expectation was high.
He said such huge investment of above N1 trillion by Nigerians in a Nigerian company, especially in the critical power sector, primarily deserves commendation, describing it as a good response to President Tinubu’s quest to deepen domestic private investments.
According to him, when Nigerians show willingness to participate in the country’s infrastructural development, such a move carries not only the potential value creation but also reinforcement of hope and confidence in the long-term outlook of the economy.
He urged the new owners to adopt best practices in stakeholders’ management through fair consideration for all and inclusive engagement.
National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude echoed similar sentiment.
He noted that the $750 million Geregu transaction was a huge transaction that would define investments in the electricity sector as it might trigger other similar transactions soon.
He however said minority shareholders were concerned about the new core investors and their plans.
“My sincere appeal to them is for them to act in good faith and pilot the affairs of the company in proper manner in line with good governance that brings benefit to all stakeholders,” Igbrude said.
Another shareholders’ leader, who craved anonymity, said the deal would only be justified if it leads to real improvements in power generation, accountability and sustainable returns.
As the new board of Geregu prepares for its first formal meeting that is expected to deliberate on composition of important committees, strategic announcements and the principle of corporate direction, stakeholders may view the ownership change through the fundamentals of the company. By the third quarter ended September 30, 2025, Geregu Power recorded total revenue of N131.47 billion, with pre and post tax profit of N37.46 billion and N25.1 billion respectively. Earnings per share was thus at N10.04 by third quarter 2025. Total assets meanwhile stood at N273.15 billion by September 2025, as against N243.47 billion recorded by December 2024.
For the first quarter ending March 31, 2026, Geregu Power projected total revenue of N57.12 billion within the three-month period. Gross profit was estimated at N22.88 billion while operating profit, profit before tax and profit after tax were expected at N18.12 billion, N17.06 billion and N12.03 billion respectively. For stakeholders, the task before the new core investor is to unlock the financial value and national contribution.
The Federal Government has finalised the implementation framework for the ₦4 trillion Presidential Power Sector Debt Reduction Plan, marking a decisive step toward restoring financial stability and investor confidence in Nigeria’s electricity market.
The plan, approved by President Bola Ahmed Tinubu and endorsed by the Federal Executive Council in August 2025, authorises the issuance of government-backed bonds to settle verified arrears owed to generation companies (GenCos) and gas suppliers — the largest financial intervention in the power sector in more than a decade.
The development followed a high-level meeting held on October 7 in Abuja between the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Power, Chief Bayo Adelabu; and the Special Adviser to the President on Energy, Mrs. Olu Verheijen, alongside senior executives of Nigeria’s GenCos.
The session reviewed settlement modalities and reached a consensus on a framework for bilateral negotiations to finalise full and final payment agreements balancing fiscal realities with GenCos’ financial constraints.
A statement by the Head of the Media and Communications Unit of the Office of the Special Adviser to the President on Energy, Senan Murray, said the initiative aims to clear long-standing arrears that have crippled investment, weakened utility balance sheets, and limited reliable power delivery across the country.
“For the first time in years, we are seeing a credible and systematic effort by government to tackle the root liquidity challenges in the power sector. We commend President Tinubu and his economic team for this bold and transformative step”, said Mr. Tony Elumelu, Chairman of Heirs Holdings and Transcorp Power.
Echoing similar optimism, Mr. Kola Adesina, Group Managing Director of Sahara Group, described the move as “significant in every respect,” adding that it “gives renewed confidence in the reform process and signals that government is serious about building a sustainable power sector.”
According to Mrs. Verheijen, the Tinubu administration’s focus is on “creating the right conditions for investment, from modernising the grid and improving distribution to scaling embedded generation.
“By closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust, we are shifting from crisis response to sustained delivery. This is how we build the confidence needed to attract large-scale private capital”, she said.
Finance Minister Edun described the initiative as a fundamental reform beyond mere liquidity intervention.
“These reforms go beyond liquidity. They are about rebuilding the fundamentals so that Nigeria’s power sector works for investors, for citizens, and for the next generation. This is how we create the enabling conditions for sustained private investment and transform reliable power into a catalyst for economic growth”, he said.
The debt reduction plan complements ongoing efforts to expand renewable energy deployment, leverage domestic gas as a transition fuel, and strengthen local technical capacity — a combination the government believes will position Nigeria as one of Africa’s most attractive power markets.
Implemented jointly by the Federal Ministry of Finance, the Federal Ministry of Power, and the Office of the Special Adviser to the President on Energy, in collaboration with the Nigerian Bulk Electricity Trading (NBET) Plc, the Presidential Power Sector Debt Reduction Plan is expected to unlock investment, modernise the grid, and drive inclusive economic growth across the country.
Minister of Power, Chief Adebayo Adelabu, has called for international support to reform and strengthen the nation’s power sector.
He emphasised the importance of training the workforce to stabilize the sector during the commissioning of new facilities at the National Power Training Institute of Nigeria (NAPTIN) in Abuja.
He expressed gratitude to President Bola Ahmed Tinubu, who ensured that the development of the nation lies in providing key infrastructures that will provide hope for the vibrant youthful population and transform into meaningful economic prosperity for all in Nigeria.
The commissioning exercise underscores the commitment to developing a highly skilled workforce capable of addressing the challenges of the rapidly evolving energy landscape.
The facilities at NAPTIN will equip Nigerian youths with modern tools and access to cutting-edge technologies, enabling them to build the expertise required to drive innovation, efficiency, and sustainability in Nigeria’s power sector.
The Minister praised the support and commitment of the French Government and the European Union in supporting the power sector, saying the success being celebrated has been made possible through the valued partnership with funding support from the Agence Française de Développement (AFD) and the EU.
Adelabu linked the development to President Bola Ahmed Tinubu’s Renewed Hope Agenda, emphasizing the legacy of transforming Nigeria’s power sector.
He urged power sector stakeholders to treat NAPTIN facilities as a shared facility and their first point of call before considering training outside of Nigeria.
Adelabu commended the commitment of the Director General of NAPTIN and his team for making the project a reality. He said the event is not just the unveiling of buildings, “but the unveiling of hope, of opportunity, and of a brighter future for Nigeria’s power sector.
The Ministry of Power and its agencies remain committed to working with the European Union and other development partners to further advance technical training, infrastructure development, and employment generation in the power sector”.
There was a delusion that the privatization of the power sector – an existing, dilapidated monopoly – would be as straightforward and eventually beneficial as the transformative liberalization of the telecommunications industry. What we are now witnessing is the shattering of that illusion, with the critical failure of the electricity sector. The entire framework was rushed, ill-conceived, and frankly, a disgrace to Nigeria.
As with many things in Nigeria, a political elite, in a moment of cynical opportunism and historical amnesia, miscalculated that the success of the telecommunications sector would be effortlessly replicated. This was an almost ridiculously naive assumption, because the telecommunications industry was a blank slate built from scratch on new technology and a fierce, consumer-driven competitive environment.
In contradistinction, those who bought into the so-called electricity privatization were fixated on creating monopolies and fiefdoms, where the consumer counted for nothing. This was the direct opposite of the competition-driven, marketing-savvy telecommunications framework. The outcome, of course, was a total disaster and the rest is history! Without electricity, no country can develop its basic industries or a continuously expanding manufacturing base to create jobs.
What’s now to be done? A more fundamental question is whether the nation possesses the intellectual humility to admit that an urgent, comprehensive reworking of the process is needed. The concept of privatizing the Transmission Company of Nigeria (TCN) is a final, desperate plea to private capital to fix what political incompetence has broken. Foreign and local investors should be encouraged to take the driving seat. There’s no alternative to this because a robust transmission network is the critical, missing link between power generation and distribution.
The concept of a centralized national grid should be replaced by a decentralized system. As then-presidential candidate Barack Obama pointed out, even in the United States, the idea of a single national grid is outdated. Under a competitive framework, Nigeria’s six geopolitical zones should have their own independent grids.
Furthermore, major commercial hubs such as Lagos, Kano, Abuja, and Rivers should have separate, self-contained grids. This is simply common sense! In the Year of our Lord 2025, the persistence of a single national grid reflects the self-defeating mindset of a quasi-federal system. A proper federal system would have abandoned this outdated concept decades ago.
The Federal Government’s decision to empower states on the concurrent list to determine their own electricity framework is right. This approach is consistent with practices in countries like India, Canada, and Brazil.
The creation of the Nigerian Electricity Regulatory Commission (NERC) raises a critical question: should Nigeria even have a Ministry of Power? A similar argument could be made regarding the Ministry of Communications, especially as the National Communications Commission (NCC) is in place. Ditto for the Ministry of Agriculture and Food Security.
If the Ministry of Power must exist, its primary role should be to coordinate the sector’s liberalization and competitive framework. This would involve collaborating with the Ministers of Finance and Industry, Trade, and Investment to develop robust regulations and secure the necessary funding to advance the renewable energy sector. The core focus of the ministry should therefore be to facilitate real competition by breaking up the transmission of power.
Nigeria must go all-in on renewable energy. It’s unacceptable that a country with significant lithium deposits in Nasarawa State is not negotiating to develop a massive, value-added, lithium-powered factory base. Unless we break from our fixation on fossil fuels, our efforts will be in vain.
A redefined Ministry of Power would have significant implications for policy and practice, demanding a shift from a traditional, centralized model to one that is more decentralized, agile, and market-oriented. Policymakers must focus on creating a robust regulatory framework that encourages private sector participation, renewable energy integration, and smart grid development. This involves establishing clear and transparent rules for licensing, tariff setting, and grid access, which would attract essential investment and innovation. For instance, policies could incentivize the adoption of distributed energy resources like rooftop solar panels and micro-grids.
Uruguay achieved 91% of electricity generation from renewables in 2022, transitioning from fossil fuel dependence. Morocco leveraged solar energy with the Noor-Ouarzazate complex, one of the world’s largest concentrated solar farms.
Kenya developed the Lake Turkana Wind Power Project, Africa’s largest wind farm, contributing significantly to renewable energy. Iceland generates almost 100% of electricity from renewables (hydropower and geothermal), with geothermal power heating most homes. With the right expertise and needed political will, we can say it’s better late than never!
A massive breakthrough is possible if the government can secure the funds for wind turbines along Nigeria’s coasts, a sector with significant prospects. Therefore, President Bola Tinubu should instruct his minister to establish a competitive framework and create an annual fighting fund of at least one billion dollars to finance private sector-driven renewable energy projects.
Public-private partnerships can also help share costs and risks associated with these reforms. Enhancing technical expertise through capacity building and training is essential for managing decentralized grids and integrating renewables. Implementing pilot projects and phased rollout can help test these changes before a nationwide implementation. This will go a long way in minimizing potential disruptions. With careful planning and stakeholder engagement, smooth transitions can ensure improved efficiency, sustainability, and reliability in power supply.
The ministry would need to champion modern technologies like advanced metering infrastructure and predictive maintenance analytics. The ultimate challenge is to transform the abstract concept of power into a tangible force for good, moving from the ‘what is’ of a centralized system to the ‘what can be’ of a decentralized, democratized and sustainable energy future.
Obtaining a meter shouldn’t be an issue. After all, people have been used to buying telephone handsets and gas cylinders anywhere they wish for decades. Without a competitive framework, the electricity sector – and by extension, Nigeria itself – will continue to struggle.
Talk about estimated billing and one would conjure images of a distant, ineffectual bureaucracy – a calculated exploitation in the political economy. It’s a daily reality where utility companies’ administrative convenience acts as a regressive tax, stunting small businesses’ growth. The system asserts that a provider’s algorithm outweighs a consumer’s meter, with tacit consent from a political system that treats accountability as a foreign concept.
Epileptic electricity supply is a profound issue of distributive justice, as it disproportionately affects the poor who cannot afford alternatives, thereby limiting their human flourishing and freedom. This raises moral questions about the state’s obligation to provide a reliable public good to all citizens, fulfilling its part of the social contract.
In Nigeria, this translates into concrete hardships: small-scale entrepreneurs are forced to use expensive generators, which increases costs and often leads to business failure, trapping them in poverty. Socially, it limits access to essential services like education and healthcare, as students cannot study at night and hospitals struggle to power critical equipment. Besides, this unreliability breeds corruption and institutional decay which perpetuate a vicious cycle of inequality and poverty.
The ministry’s new role is to steward energy as a public good, ensuring it serves social justice and economic empowerment. By focusing on transparency, collaboration, and long-term vision, Nigeria’s Ministry of Power can uphold high ideals of public service. With the right leadership and clear purpose, the nation can meet its energy needs and fulfill its collective potential.
May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!
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.
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.
The Minister of Power, Adebayo Adelabu, has said the country needs $10 billions annually to fix the perennial power sector crisis, and expressed the optimism that it is a herculean task that must be achieved in the next 20 years.
The Minister spoke yesterday at the commissioning ceremony of the phase 1-600kw Solar pv power plant at the Nigerian Defence Academy (NDA), Kaduna.
“For us to achieve functional reliable and stable electricity in Nigeria we need not less than $10 billion annually for the next ten to twenty years. But there are some foundational bottlenecks that we experienced in the past that need to be fixed for the spending of this money to have meaning.
“Number one is the legislative and policy foundation which this administration has achieved by signing the energy bill into an act. This bill has achieved liberation and decentralization of the power sector to enable all levels of government federal State and local government to legally and morally play roles in the power sector to give their citizens at sub national levels. This has given autonomy to more than eleven States and more are still coming.
They can now play roles in the power from generation to transmission to distribution and even metering.
“Secondly, we talk about infrastructure deficit, then we talk about fixing infrastructure deficit which has piled up over the last 60 years due to lack of maintenance, lack of additional investment to revive our transmission grid.”
The Minister also emphasised the need to bridge over 50 per cent metering gap which he said the Presidential initiative aims to achieve through 18 million meter installation in the next five years.
Earlier, while addressing military officers at the NDA, Adelabu said: “I stand before you today at this significant occasion, the commissioning of the 600kW and 3MW Solar PV Power Plant here at the prestigious Nigerian Defence Academy.
“These projects, implemented by the Federal Ministry of Power and the Rural Electrification Agency not only underscores our commitment to improving electrification across key institutions in Nigeria but it is also part of our broader mandate to diversify our energy sources, expand access to clean and reliable electricity, and support critical sectors of our national development, including education and security.
“As an institution that combines academic rigour with military excellence, the Nigerian Defence Academy represents a strategic national asset that must be strengthened through sustainable infrastructure.
“Powering the Academy with renewable energy aligns with our vision for a secure, self-reliant, and energy-efficient Nigeria. It also reflects our commitment to President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes accelerated national development through universal energy access.
“Importantly, this project also allows us to reflect on the enduring partnership between the Nigerian power sector and the Nigerian Armed Forces. I wish to specially commend and thank the military for its consistent support in protecting critical power infrastructure across the country. Without your steadfast commitment, our efforts to deliver stable and reliable electricity would be significantly constrained.
“Your role is becoming even more indispensable, given the rising cases of vandalism on critical power assets and attacks on power sector personnel across the country. As part of effort to address this problem, we urge the continued collaboration of the Nigerian Armed Forces in safeguarding the sector’s infrastructure and workforce.
“As we deepen this collaboration, it is essential that our partnership is rooted in mutual respect and understanding. Recent developments, such as the regrettable incident involving military personnel and staff of Ikeja Electric, are unfortunate and counterproductive. Such actions undermine the progress we all seek to achieve and should be avoided.
“The power sector and the military are not on opposing sides; we are allies in the pursuit of national development. Our shared objective is a Nigeria where sustainable electricity supply supports growth, security, and prosperity for all. As we commission these power plants today, let it stand not only as a symbol of clean energy advancement but also as a sign of further cooperation between the Nigerian Power Sector and the Nigeria military,” the minister said.
In his welcome address, the NDA Commandant, Major General Abdul Ibrahim expressed appreciation and satisfaction to the initiative in the power sector, and assured synergy with the Ministry of Power.
Managing Director, Coleman Wires and Cables Industries Limited, Mr. George Onafowokan, has called on the federal government to prioritise homegrown solutions to address Nigeria’s recurrent grid collapses.
Speaking in reaction to the persistent grid failures and the government’s declaration of investment opportunities in the power sector, Onafowokan highlighted the importance of industrialising the sector.
He advocated for the complete deregulation of the power industry, which he noted is already in progress.
“There is also a need for industrialisation within the sector. Obsolete wires and cables must be replaced, and all transmission and power project materials should be locally sourced, as the country has more than enough capacity to meet and exceed its needs,” Onafowokan said.
He acknowledged that locally manufactured products might be more expensive due to high production costs but stressed that achieving the right investments hinges on private-sector-driven policies.
Reflecting on the sector’s long-standing challenges, the Coleman MD commended the current administration for refocusing attention on the power sector.
“These challenges have persisted for years, and I sympathize with this government because they inherited these problems. Solving electricity issues is not an overnight task. When we returned to democracy, we started well, but after eight years, we became complacent,” he said.
Onafowokan further explained that the grid collapses and insufficient power supply result from an imbalance between power generation and transmission. “The billions allocated to the sector won’t make a difference without proper implementation of policies,” he added.
The Coleman MD stressed the importance of continuity in addressing the power sector’s challenges until a lasting solution is achieved.
Nigeria is taking bold steps to revive its faltering power sector, aiming to attract $15 billion in private investments while keeping its most vulnerable citizens in mind.
At a World Bank energy summit in Tanzania, the government outlined a plan that combines higher electricity tariffs with fresh subsidies to ease the burden on households.
Under the proposal, households will receive 50 kilowatt hours of subsidized electricity monthly, either through direct consumption or vouchers. This is part of a broader effort to address a massive $23 billion funding gap in the power sector and bring electricity to the 86 million Nigerians still living in the dark.
Despite being Africa’s top natural gas producer with abundant hydro and solar resources, Nigeria generates a paltry 13,000 megawatts of electricity for over 200 million people. For comparison, South Africa, with just 62 million people, produces 52,000 megawatts. Frequent blackouts and widespread reliance on private generators have become the norm for Nigerians who can afford them.
The government’s pitch includes plans to double the number of households connected to the grid annually and boost renewable energy from 22per cent to 50per cent of the generation mix within five years. While the nation removed subsidies for about 15per cent of urban households last year, tripling tariffs, it still spent N2.2 trillion on subsidies. The new plan aims to implement full-cost tariffs by 2027 while providing a buffer for vulnerable households.
The country’s power sector ambitions are similar to its recent oil sector recovery, where a combination of strategic planning, good fortune, and bold leadership brought production back from near collapse. With a renewed focus and an investor-friendly pitch, the nation is looking to spark a similar turnaround in its power sector.
