Discover the major highlights from Minister Bayo Adelabu’s presentation on Nigeria Power Sector Reforms 2025—from market revenue growth to clean energy investments and national grid upgrades.
Nigeria Power Sector Reforms 2025: Minister Adelabu Outlines Bold New Roadmap at Press Briefing
At the 6th edition of the 2025 Ministerial Press Briefing Series, held in Abuja on April 17, 2025, the Honorable Minister of Power, Bayo Adelabu, presented a sweeping update on the transformative strides in Nigeria’s energy sector. Hosted by the Minister of Information and National Orientation, Mohammed Idris, the event spotlighted key milestones and future plans under the current administration.
Fiscal and Policy Reforms
Minister Adelabu revealed three landmark blueprints: the National Integrated Electricity Policy (NIEP), the Nigeria Integrated Resource Plan (IRP), and the Nigeria Power Sector Compact—frameworks designed to reshape the nation’s electricity landscape into a resilient and sustainable system.
He also announced the unbundling of the Transmission Company of Nigeria, separating it into Nigeria Independent Service Operators (NISO) and Transmission Service Providers (TSP). This reform is aimed at boosting transparency, governance, and investor confidence.
Historic Takeoff: Minna Airport Launches First Commercial Flight After Major Upgrade
A highlight was the N700 billion increase in market revenue, thanks to cost-reflective tariffs for Band A customers. This move helped reduce the electricity subsidy shortfall by N1 trillion from a projected N3 trillion to N1.94 trillion in 2024.
Further decentralization of the power sector is underway, with 11 states now having regulatory authority after the signing of the Electricity (Amendment) Act 2024 by President Tinubu.
The government also launched a Power Sector Debt Reduction Initiative, targeting the settlement of N2 trillion of the N4 trillion owed to GenCos by the end of 2025.
Minister Adelabu emphasized regulatory accountability, revealing that DisCos were fined over N600 million for various consumer violations, particularly overbilling.
Multilateral Investment & Electrification Access
In a bold move toward universal energy access, 75 million Nigerians are expected to gain electricity within five years, thanks to the $30 billion Mission 300 a joint initiative with the World Bank and AfDB.
The newly launched DARES project, a $750 million World Bank-funded program, aims to deliver solar energy to 17.5 million Nigerians through mini-grids, standalone systems, and technical support.
Energy Generation and Hydropower Projects
On March 2, 2025, Nigeria exceeded the 6,000MW power generation mark for the first time, reaching a historic 128,370MWh daily energy output two days later. Since Q3 2023, daily generation has grown by 1,600MW a 40% increase.
To harness hydropower potential, infrastructure upgrades are underway at Zungeru and Kashimbilla plants, while the long-stalled Kaduna Thermal Power Plant is being fast-tracked for completion by year-end.
A $500 million SPIN project, signed with the World Bank, will advance hydropower and irrigation, while studies are ongoing to tap wind and hydro resources along Nigeria’s major highway corridors.
Transmission and Grid Expansion
The national grid now boasts an operational capacity of 8,900MW, bolstered by 70 new transformers and major funding from the World Bank and AfDB.
N25 billion has been allocated in the 2025 budget for completing key transmission projects. The Presidential Power Initiative (Siemens Project) added 700MW during its pilot and is now moving into Phase 1, targeting a 7,000MW capacity increase.
Plans are also progressing to regionalize the national grid with Eastern and Western supergrids, to improve reliability and performance.
Distribution & Metering
The government has launched a Presidential Metering Initiative (PMI) to deploy 10 million smart meters by 2030. A Special Purpose Vehicle will deliver 1.1 million meters in 2025 and 2 million yearly thereafter.
Through the DISREP project, 1.3 million additional meters will be deployed by year-end, with 75,000 meters already delivered in April and 200,000 more expected in May. Meter test stations in Kano and Benin City are nearing full operation.
Renewables & Clean Energy Projects
The Energizing Education Programme has completed its first two phases, powering 37 federal universities and 7 teaching hospitals with 32MW of renewable energy.
New solar mini-grids have been launched in Plateau, Cross River, Niger, and Osun States, benefiting thousands of households.
Plans are underway for 100MW modular solar plants in all 19 Northern states, and a private-sector-led solar project targeting 1,000MW is in progress.
Additionally, the Ministry is planning a 1,000MW hydropower plant in Makurdi, further diversifying Nigeria’s renewable energy sources.
