Nigeria’s Power Sector Reforms Attract $2 Billion Investment, Liabilities Slashed to N146 Billion
Nigeria’s ongoing power sector reforms are yielding tangible results, attracting $2 billion in fresh investment and cutting government liabilities to N146 billion. The Minister of Power, Adebayo Adelabu, disclosed this milestone during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO) in Abuja, highlighting the government’s commitment to a more efficient and sustainable electricity sector.
The minister emphasized that these reforms, anchored in policy overhaul, market liberalization, and institutional strengthening, have significantly improved sector performance. Central to this transformation is the Electricity Act 2023, which decentralizes the power industry and encourages subnational participation, opening the doors for state-level electricity markets and enhanced private sector involvement.
According to the minister, Nigeria’s electricity sector revenue grew by 70 percent in 2024, while government liabilities fell by about N700 billion. NELMCO has played a key role, reducing inherited debts from N2.303 trillion to N146.76 billion and delivering over N700 billion in savings through rigorous verification and reconciliation processes. The activation of 16 state electricity markets has further stimulated competition and innovation in the industry.
Generation capacity has also seen an improvement, rising from 13 gigawatts to 14 gigawatts, with record operational milestones including a peak generation of 5,801.44 megawatts. To address the long-standing metering gap, the government has launched the Presidential Metering Initiative, backed by N700 billion from the Federal Account Allocation Committee and an additional $500 million from the World Bank, with procurement already underway to supply millions of meters nationwide.
Beyond financial and operational gains, the reforms have strengthened regulatory oversight. The Nigerian Electricity Regulatory Commission (NERC) inaugurated the Forum of Nigerian Electricity Regulators (FONER) to enhance coordination with State Electricity Regulators, harmonize tariff and market operations, and foster capacity building. The new NELMCO headquarters symbolizes not just a physical structure but the reinforced institutional and financial backbone driving Nigeria’s energy transformation.
source: nairametrics