Adelabu: FG’s Power Reforms Yielding Fruits as Grid Synchronizes with West Africa, Investments Hit $2bn

Minister of Power, Chief Adebayo Adelabu, has announced that the Federal Government’s strategic interventions in the power sector are already yielding significant results, culminating in a landmark synchronization of the Nigerian grid with the wider West African network and attracting over $2 billion in fresh investments.

The Minister disclosed this on Thursday while delivering the keynote address at the PwC’s Annual Power and Utilities Roundtable 2025 in Lagos, themed: “Nigeria’s Multi-Tier Electricity Market: Imperatives for Successful Evolution.”

Chief Adelabu, an alumnus of the consulting firm, framed the reforms as a fundamental shift from a monolithic national market to a “dynamic, multi-tier federation of markets,” driven by the Electricity Act 2023.

“Under the Renewed Hope Agenda of President Bola Ahmed Tinubu, the Nigerian power sector has entered a new phase defined by decentralization, liberalization, and a shift from a single national market to a multi-tier, multi-actor electricity ecosystem,” the Minister stated.

He outlined the profound strategic value of this decentralization, noting that it “enhances efficiency and competition, enable state-specific solutions, attract greater investment, and improve reliability.”

He pointed to states like Enugu and Lagos as early beneficiaries where subnational energy strategies are “unlocking new opportunities and shaping local development pathways.”

However, the core of his address was a detailed presentation of the tangible outcomes achieved from the government’s interventions.

“These interventions are already showing results. Under President Tinubu’s leadership, the sector has recorded major milestones,” Chief Adelabu declared, before listing a series of achievements.

A standout milestone was the “first ever successful synchronization of the Nigerian power grid with the wider West African grid.”

The Minister described this as a “remarkable milestone for West Africa,” noting that the West African Power Pool (WAPP) achieved synchronisation across all 14 member countries for over four hours, marking a major step toward a fully integrated regional electricity market.

On the economic front, the Minister said there had been a 70 percent increase in the sector’s revenue in 2024 and a reduction of government liability by NGN 700 billion, attributing this to the “commencement of the process to transition the industry towards full commercialization.”

Further bolstering the sector’s financial health is the successful mobilization of N700 billion from the Federation Account Allocation Committee (FAAC) to implement the Presidential Metering Initiative, (PMI) aimed at closing the nation’s massive metering gap. This is complemented by a World Bank DISREP fund of $500 million, which together will add millions of new meters to the system.

“Procurement of the meters have commenced,” the Minister confirmed.

He said Operational capacity has also been on the upward swing, with the country’s installed generation capacity rising from 13GW to 14GW. More critically, the nation achieved an all-time generation peak of 5,801.44 MW and a maximum daily energy record of 128,370.75 MWh on March 4, 2025.

Other key results include the activation of 15 States electricity markets, the development of a National Integrated Electricity Policy after 24 years, and the attraction of over $2 billion in fresh investments to extend electricity access.

While acknowledging challenges such as regulatory overlap, weak infrastructure, and liquidity issues, Chief Adelabu assured that the Ministry was proactively addressing them through coordinated engagement, capacity building, and expanded public-private partnerships.

He concluded by asserting that Nigeria’s transition to a multi-tier electricity market “is not optional, it is necessary,” and called on stakeholders to “think boldly, challenge assumptions, and generate solutions” to build a decentralized, competitive, and inclusive power sector for the nation.