Power: Sector revenue to exceed N2 trn in 2025, Adebayo

.…Says Tinubu approves N4 trn bond to clear verified GenCo, gas debts
… Projects PPI Phase one to add 7000MW to grid

By Chris Ochayi

The Minister of Power, Chief Adebayo Adelabu has projected the power industry revenue to increase to N2 trillion by the end of this year

Adelabu, who made the disclosure, while speaking at the 2025 Nigeria Energy Forum on Tuesday in Abuja , recalled that the industry revenue increased by 70% to N1.7 trillion in 2024

Adelabu tied the positive development to tariff policy reforms in the Nigerian Electricity Supply Industry, NESI, which according to him enabled cost-reflective tariffs for select consumers.

According to him, “The government is deepening power sector commercialization to strengthen revenue, liquidity, and investor confidence.

“Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70% to ₦1.7 Trillion in 2024 compared to previous year and the revenue is expected to exceed ₦2 Trillion for 2025.

“To stabilize the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialization and viable industry”

He said, on sector performance monitoring and enforcement, ‘The National Regulator and the State Regulatory Commissions are working in close synergy to drive performance improvement across the utilities.

“The sector continues to face challenges of under-capitalization among several Distribution Companies (DisCos) and a severe debt burden that has constrained their operational efficiency and service delivery over the years.

“As the tenure of their operational licenses approaches renewal, the government intends to introduce a minimum capital adequacy requirement as part of the license renewal process, to strengthen the financial health and liquidity position of the utilities.

In the area of infrastructure development, the Minister explained that “The Federal Government has introduced targeted national programs aimed at accelerating the viability, expansion, and modernization of the national grid.

“Under the phase zero of the Presidential Power Initiative (PPI), we enhanced transmission capacity, grid stability, and overall system reliability, with over 700MW of additional transmission capacity already achieved.

“Under Presidential Power Initiative (PPI) Phase One, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China.

“Financing arrangements are underway to support implementation. Phase one is planned to add 7000MW operational capacity to the grid.

“In parallel to the grid expansion, generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the grid. Collectively, these interventions have helped sustain an average generation capacity of approximately 5,300MW in 2024 up from 4,200MW recorded in 2023.

“In addition, the unbundling of the Transmission Company of Nigeria, into two organisations: the Nigerian Independent System Operator (NISO), which manages the operation of Nigeria’s electricity grid and coordinates the electricity market, and the Transmission Service Provider (TSP), which owns, maintains, and expands the physical transmission infrastructure.

“This marks a long-awaited and critical structural reform in the power sector.
Lastly, the Federal Government has operationalized the Presidential Metering Initiative (PMI) to close the national metering gap and improve sector viability. Already, ₦700 billion has been secured from FAAC to deploy 1.1 million meters by end of 2025, and 2 million annually over the next five years under the PMI.

“This complements the 3.2 million meters being procured through the World Bank’s DISREP program, positioning Nigeria to close the metering gap within five years and strengthen transparency and revenue assurance across the value chain.

“To advance Nigeria’s energy transition and access goals, the Federal Government is leveraging bilateral funding and development finance to de-risk investments and attract private participation for access expansion across underserved and unserved communities, educational institutions, healthcare facilities and government institutions.

“In the past two years, over $2 billion has been mobilized through key facilities, including the $750 million World Bank DARES program for off-grid and mini-grid expansion, the $500 million NSIA RIPLE platform to unlock private capital for renewables, and the $190 million JICA fund to complement DARES. Collectively, these interventions are accelerating renewable energy deployment and expanding reliable, affordable power across the country.

“Finally on local content and capacity development, the Ministry recently commissioned new training equipment, simulation infrastructure, and two workshop blocks with 104-room hostel accommodation at the National Power Training Institute of Nigeria (NAPTIN) to strengthen technical capacity across the sector.

“These facilities were delivered in partnership with development partners. At the recently concluded Nigerian Renewable Energy Innovation Forum (NREIF) 2025, we successfully activated agreements which will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity equivalent to almost 80 percent of our current national generation capacity.

“With this scale of renewable energy production coming online, Nigeria is not only positioned to achieve its domestic renewable energy and energy transition targets, but also to serve regional power markets which we recently started doing with export of Nigeria-made solar panels to Ghana.

“As we commence today’s forum, let me once again emphasize to our investors, financiers, and innovators that Nigeria’s power sector remains open and ready for business more than ever before. We recognize that achieving the scale of investment required to transform the sector requires greater private sector participation across the entire value chain, particularly in the transmission segment.

“A useful reference is South Africa’s ambitious $25 billion transmission grid expansion initiative, which seeks private developers to deliver 14,000 kilometers of new power lines and connect over 59 GW of new capacity within the next 14 years.

“This is remarkable when compared to Nigeria’s Presidential Power Initiative (the Siemens project) valued at $2.3 billion.

“In Nigeria today, we have over 10 GW of stranded generation capacity. Energy that could power industries, create jobs, and even support electricity exports to our neighboring countries through the regional power pool.

“We are therefore open to strategic partnerships to mobilize the necessary investments and unlock this potential. Our market fundamentals are improving, our policy environment is clear, and the national leadership is committed to creating the enabling conditions for long-term investment and innovation.

“As we engage in conversations over the next two days, I urge us to think boldly, collaborate strategically, and invest with purpose. The opportunities before us are immense, not only to bridge our nation’s power gap, but to ignite a new era of industrial growth, technological innovation, and shared prosperity.

“Together, through sustained investment, forward-thinking innovation, and strong partnerships, we can power Nigeria’s journey toward a brighter, more resilient, and energy-secure future.”