President Bola Tinubu has officially approved a bold new reform initiative for Nigeria’s power sector, signing off on the National Integrated Electricity Policy at the Federal Executive Council meeting held on May 6, 2025. The policy, which had been in development since its submission in December 2024, sets a strategic roadmap to overhaul the Nigerian Electricity Supply Industry (NESI) and attract a staggering $122.2 billion in investment over the next two decades.
The newly ratified policy, mandated by Section 3(3) of the revised Electricity Act 2023, is designed to modernize and diversify Nigeria’s energy sources beyond its current reliance on gas and hydropower. According to previous reports, the plan aims to reduce grid dependency, boost infrastructure stability, and align Nigeria’s energy goals with global sustainability standards. The policy outlines clear objectives for achieving a more reliable and environmentally sound power system.
To reach the $122.2 billion investment target between 2024 and 2045, the government plans to incorporate a wide range of alternative energy technologies. These include solar photovoltaic and concentrated solar power, wind, hydrogen, biomass, nuclear, and bioenergy, as well as innovations like carbon capture and storage. An initial $192 million will be spent between 2024 and 2028 to strengthen national transmission infrastructure.
Minister of Power Adebayo Adelabu, through his adviser Bolaji Tunji, confirmed that implementation of the policy has already begun and is expected to yield visible results across all layers of the electricity value chain. Adelabu emphasized that the roadmap presents a transformative framework that addresses longstanding power sector challenges while promoting energy efficiency, improved governance, and integration of renewable energy.
Describing the passage of the Electricity Act 2023 as a turning point, Adelabu noted that the policy creates a unified vision for Federal and State governments, investors, and citizens to navigate Nigeria’s energy transition. With this ambitious policy now in motion, the administration aims to spur socio-economic growth by ensuring sustainable and accessible electricity for all Nigerians.
Source: Punch