Speaking to journalists shortly after attending Eid-el-Kabir prayers at the Agodi Prayer Ground in Ibadan on Friday, Adelabu said that while the country has started experiencing modest improvements in power delivery, far more ambitious outcomes are in the pipeline.

“What we are seeing now is just the beginning,” he said. “The foundational challenges in the power sector are being addressed, and this administration is laying down a solid base to ensure long-term sustainability.”

Adelabu, who assumed office in September 2023, emphasized that solving structural issues has been a top priority under President Bola Tinubu’s leadership. He noted that recent developments—such as the commissioning of a new power plant in Port Harcourt—underscore the administration’s commitment to electrifying the country.

“The President’s vision is clear: to bring electricity to every home, every business, every institution, and every industry across Nigeria,” Adelabu said. “We’re making steady progress, and within the next year, Nigerians will begin to feel the impact in a much bigger way.”

He described power supply as central to economic revitalization, adding that better electricity access would help revive small businesses, drive industrial growth, and improve the quality of life for millions of Nigerians.

“Power is not just about light—it’s about productivity, employment, and stability. We are working to ensure every corner of the country feels that change,” he said.

While acknowledging that building a resilient energy sector takes time, Adelabu stressed that the administration’s focus remains on delivering practical, lasting solutions rather than short-term fixes.

“Rome wasn’t built in a day,” he said. “But what matters is that we are on the right path—and we’re moving with purpose.”

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This development was revealed at the second Nigerian Electricity Supply Industry (NESI) Stakeholders’ Meeting of 2025, organized by the Nigerian Electricity Regulatory Commission (NERC). Representing the Special Adviser to the President on Energy, Eriye Onagoruwa, a spokesperson confirmed that plans are in motion to resolve the debt before the end of the next quarter.

Onagoruwa acknowledged the weight of the burden GenCos have carried and noted that the Presidency is considering alternative financial mechanisms to deal with the outstanding liabilities, given the federal government’s fiscal limitations.

“We understand the pressure GenCos are under. We’re working with both the Coordinating Minister of the Economy and the Debt Management Office to find workable solutions,” she stated. “The internal approval process is already underway.”

Although no fixed deadline was announced, she expressed confidence that progress would be communicated by the next NESI meeting, signaling a possible update within the next three months.

The GenCos, meanwhile, have been sounding the alarm over what they describe as crippling debts, which some sources say now exceed ₦4 trillion. The Senate Committee on Power recently pointed out that tariff shortfalls have left the government owing an estimated ₦200 billion monthly to electricity producers.

The stakeholders’ meeting brought together key players from across the electricity value chain to discuss pressing issues — from the widening metering gap and the Presidential Metering Initiative, to the potential impacts of the Electricity Act 2023.

Discussions also touched on the proposed Meter Asset Fund, the transition to a multi-tier electricity market, and the newly established State Electricity Regulatory Commissions. In light of these decentralization efforts, John Akinnawo, Acting MD of the Nigerian Bulk Electricity Trading Plc, warned against fragmentation and called for strong policy coordination led by the Nigerian Independent System Operator (NISO).

In a presentation, Abdu Mohammed Bello, NISO’s Managing Director, laid out the agency’s roadmap for enhancing market transparency and operational efficiency.

Industry players at the meeting welcomed the Presidency’s commitment, viewing it as a potential turning point in stabilizing Nigeria’s electricity supply and ensuring long-term sustainability.

As the nation waits for action, the coming months are expected to be pivotal in addressing financial hurdles that have long held back the sector.

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Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, made this known during a media chat at a retreat organised by the Nigerian Electricity Regulatory Commission (NERC) in Ikot-Ekpene, Akwa Ibom State, over the weekend. The event was convened to explore sustainable solutions to the ongoing challenges plaguing Nigeria’s power sector.

According to Senator Abaribe, the federal government currently owes an estimated ₦200 billion monthly due to tariff shortfalls. He disclosed that no payments have been made to power producers so far this year, compounding the sector’s longstanding financial burden.

“There’s a serious liquidity crunch affecting the power sector,” Abaribe stated. “Generation companies are owed enormous sums, and the distribution companies are not faring any better. The government has already accrued ₦800 billion in debt this year alone, on top of an outstanding ₦3 trillion from previous years.”

He warned that this growing debt has implications for the entire electricity value chain, including gas suppliers who power the generating stations. “Gas suppliers cannot continue providing gas indefinitely without payment,” he added.

Despite the grim financial picture, Abaribe expressed cautious optimism. He called on both federal and state governments to collaborate and make bold policy decisions, especially now that Nigeria operates a multi-tier electricity market.

“We must ask ourselves: Do we subsidise fuel for mobility, or do we focus on subsidising electricity that fuels homes, businesses, and industries?” he posed.

Minister of Power, Adebayo Adelabu, also addressed the forum, highlighting progress made under the current administration, particularly in boosting power generation. However, he acknowledged that funding constraints and widespread vandalism of infrastructure remain major obstacles.

“Only in Nigeria do we witness the scale of sabotage seen in our energy infrastructure,” the minister noted.

Adding a state-level perspective, Akwa Ibom State Governor Umo Eno—represented by Deputy Governor Senator Akon Eyakenyi—stressed the role of consistent electricity supply in empowering small and medium-sized enterprises (SMEs), which he described as vital to economic growth.

Participants at the retreat expressed hope that collaborative efforts and expert contributions would pave the way for meaningful reforms to stabilize the power sector and restore investor confidence.

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Speaking during the 2025 Ministerial Sectoral Update Conference in Abuja on Thursday, Adelabu attributed this progress to Nigeria’s participation in the Mission 300 initiative—an ambitious program spearheaded by the World Bank and the African Development Bank (AfDB) aimed at expanding electricity access to 300 million Africans by 2030.

“The compact sets ambitious goals to enhance electricity access, increase renewable energy adoption, and improve clean cooking solutions for millions of Nigerians — that is Mission 300, and we are making good progress on this,” he said.

He noted that Nigeria is expected to contribute about 25% of the total target, equating to 75 million Nigerians.

With a population exceeding 240 million, Nigeria now reportedly provides access to adequate electricity for 150 million people. However, the minister emphasized that the core challenge lies in the reliability and affordability of that access.

He urged global financiers and partners to prioritise investment in Nigeria’s national grid infrastructure alongside rural, renewable-based solutions, warning against an overemphasis on off-grid renewables alone.

Adelabu also highlighted recent gains in power generation capacity. Nigeria has increased its generation to 6,003 megawatts, an improvement of 1,700MW in just 18 months under President Bola Tinubu’s administration.

He further disclosed that the Kaduna Power Plant is expected to come on stream by the end of 2025, while efforts are underway to close Nigeria’s metering gap.

Addressing financial reforms in the sector, Adelabu said that recent tariff adjustments had increased revenue by ₦700 billion. In April 2024, the Nigerian Electricity Regulatory Commission (NERC) approved a tariff hike for Band A customers—those receiving at least 20 hours of electricity daily—from ₦68 to ₦225 per kilowatt-hour, affecting about 1.9 million users.

The government defended the move, citing the unsustainable cost of electricity subsidies, projected at ₦2.9 trillion in 2024. Even with the revised tariffs, ₦2.8 trillion was still budgeted for subsidies. NERC estimated the reform would cut subsidy costs by ₦1.14 trillion.

However, the tariff hike has faced backlash. The Institute of Chartered Accountants of Nigeria (ICAN) labeled it “an additional burden,” while the Abuja Chamber of Commerce and Industry warned of its impact on SMEs.

Despite improvements, Nigeria’s national grid remains fragile, suffering at least 12 collapses in 2024 alone. The Transmission Company of Nigeria (TCN) attributed these failures to aging infrastructure, vandalism, and gas supply disruptions.

Adelabu advocated for the regionalisation of the grid to minimise the impact of nationwide failures and enhance responsiveness. He also raised concerns about the country’s dependency on imported power equipment, which continues to pressure foreign reserves.

As a result of grid unreliability, many Nigerians have turned to off-grid solutions. Generators alone now produce an estimated 40,000 megawatts—over eight times what the national grid transmits. Some states are actively developing mini-grids and independent power markets to diversify supply.

“Until the national grid becomes truly reliable, Nigerians—both businesses and individuals—will continue to seek alternatives. Our task is to reverse that trend by fixing the fundamentals,” Adelabu concluded.

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These challenges have left the country grappling with persistent power supply issues, despite the privatization of the sector over a decade ago.

One of the most controversial events of 2024 was the over 200 percent hike in electricity tariffs for customers classified under Band A, who were promised up to 20 hours of power supply daily. In April 2024, the cost of electricity surged to N225 per kilowatt-hour, up from N66, sparking public outcry and protests. While the tariff hike boosted revenue for electricity distribution companies, it strained household budgets already burdened by inflation.

The Nigerian government failed to meet its target of generating 6,000 megawatts of electricity by the end of 2024, a promise made by the Minister of Power, Adebayo Adelabu. The country’s power generation remained consistently below 5,000 megawatts, affecting the electricity supply for over 200 million citizens. Adelabu cited persistent vandalism as one of the key reasons behind the unmet target.

Vandalism of the Transmission Company of Nigeria (TCN) facilities reached alarming levels in 2024, with at least 13 national grid collapses reported during the year. These attacks left large parts of the country without electricity for extended periods. The northern states and parts of Rivers and Bayelsa were particularly affected, as vandals targeted key transmission lines, leading to widespread outages.

In the Niger Delta, power outages persisted due to continued vandalism of TCN transmission lines. Notably, in November 2024, vandals destroyed the Ahoada-Yenagoa 132 kilovolt line and stole components from other major transmission lines, exacerbating power shortages in the region.

Despite the numerous challenges, 2024 also saw a major development aimed at improving the power sector. The 2023 Electricity Act, which granted oversight functions to states, offers a potential solution to some of the sector’s governance and operational issues. As of December 2024, eight states—including Lagos, Ogun, Enugu, Kogi, Ondo, Ekiti, Oyo, and Imo—had been granted regulatory oversight for electricity operations, signaling a shift towards decentralization that may improve service delivery.

As Nigeria enters 2025, there are mixed expectations for the power sector. While experts like Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, caution that the tariff hikes may unsettle the public, the decentralization of regulatory oversight and ongoing efforts to curb vandalism bring hope for a more stable power supply in the future. However, addressing the challenges of grid reliability and infrastructure security remains a priority for the year ahead.

Despite the setbacks, there is cautious optimism that the power sector’s reforms will gradually lead to improvements in 2025, bringing relief to millions of Nigerians who continue to face unreliable electricity services.

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