Reforms in the energy industry have drawn in $2 billion in funding, according to Adelabu

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Adelabu

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Minister of Power, Mr Adebayo Adelabu, says power sector reforms have attracted over two billion dollars fresh investments into the industry.

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Adelabu said this in Abuja on Thursday during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).

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He said that the sector’s revenue grew by 70 per cent in 2024, while government liabilities were reduced by about N700 billion, reflecting improved efficiency and cost recovery mechanisms.

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The minister said that the sweeping reforms and measurable progress in the sector were achieved under the Renewed Hope Agenda of President Bola Tinubu.

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According to him, the transformation is beginning to yield tangible results across the electricity value chain.

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

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The minister described the ongoing changes as deliberate steps to build a viable and investor-friendly electricity market.

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“Central to the reform drive is the Electricity Act 2023, which has enabled the decentralisation of the sector and opened the door for sub-national participation.

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“This has already led to the activation of 16 state electricity markets, while also stimulating competition and innovation within the industry,” he said.

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He said that the development of a National Integrated Electricity Policy, the first in over two decades, now provides a unified framework for implementing the Act.

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He said that ot was also strengthening coordination between the federal and state governments, and accelerating access to reliable and affordable electricity.

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The minister also said there was improvement in generation capacity, which has increased from 13 gigawatts to 14 gigawatts, alongside record operational milestones, including a peak generation of 5,801.44 megawatts.

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“Government is addressing the long-standing metering gap through the Presidential Metering Initiative, backed by N700 billion mobilised through the Federal Account Allocation Committee.

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“There is also an additional 500 million dollars World Bank facility, with procurement processes already underway to deliver millions of meters nationwide,” he said.

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Adelabu said as an outcome of the broader reforms, Nigeria had successfully carried out the synchronisation of its national grid with those of other ECOWAS countries following a 4-hour-uninterrupted test run.

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He said the development underscored the growing stability and technical capacity of the nation’s electricity system and signals readiness for expanded regional power exchange.

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The minister described the inauguration of NELMCO’s headquarters as more than the unveiling of a building.

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He said that it represented a reinforcement of the institutional and financial backbone required to sustain the reform process.

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He commended the agency for its role in stabilising the sector, disclosing that it has reduced inherited liabilities from N2.303 trillion to N146.76 billion.

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Adelabu also said that the agency delivered over N700 billion savings to the Federal Government through rigorous verification and reconciliation processes.

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He said NELMCO had significantly reduced ground rent claims from N644 billion to N41.8 billion and achieved 45 per cent reduction in post-privatisation liabilities owed by MDAs to electricity distribution companies.

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“The reforms are anchored on building a transparent, sustainable and commercially viable power sector capable of supporting economic growth.

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“The progress recorded so far reflects the government’s commitment to delivering reliable electricity to Nigerians,” he said.

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(NAN)

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