From Isaac Anumihe, Abuja
The Minister of Power, Chief Adebayo Adelabu, has announced that the implementation of cost-reflective tariffs for Band A customers, who receive 20–24 hours of daily power supply, increased Nigeria’s electricity market revenue by ₦700 billion in 2024.
Speaking at a ministerial press briefing in Abuja on April 17, Adelabu noted that this represents a 70% rise from 2023’s ₦1 trillion, bringing total revenue to ₦1.7 trillion.
He said, “It is evident that, due to our transformative tariff reforms, the electricity market generated an additional ₦700 billion in revenue in 2024, reflecting a 70 per cent increase as ₦1.7 trillion was generated in 2024, while ₦1 trillion was generated in 2023.” This growth, he added, enhances financial viability and supports the sector’s path to sustainability and commercialisation.
Adelabu highlighted key reforms, including the establishment of the National Independent System Operator (NISO), which unbundles the Transmission Company of Nigeria (TCN) to improve grid governance and boost investor confidence. Regulatory oversight has been transferred to 11 states, with Plateau and Niger added in the last 100 days, joining Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, and Ogun.
On generation, Nigeria achieved a record peak capacity of 6,003 MW on March 2, with a peak evacuation of 5,801.44 MW and a daily energy output of 128,370.75 MWh on March 4. The Niger Delta Power Holding Company (NDPHC) restored 345 MW of idle capacity, including 120 MW at Omotosho, 112.5 MW at Benin, and 112.5 MW at Calabar. Off-grid and solar mini-grid projects were commissioned, such as 550 kWp in Plateau, 440 kWp in Cross River, 990 kWp in Niger, and 510 kWp in Osun, powering thousands of households.
The minister also noted progress in transmission and metering. The Presidential Power Initiative’s pilot phase added 700 MW through upgrades at 13 locations, while TCN installed over 70 transformers between 2024 and 2025, funded by internal revenue, the World Bank, and the African Development Bank. A ₦25 billion budget allocation in 2025 aims to complete ongoing transmission projects, and Eastern and Western Super Grid frameworks are being developed to enhance grid resilience. The Presidential Metering Initiative (PMI), backed by ₦700 billion from the Federation Accounts Allocation Committee, targets 1.1 million meters by the end of 2025 and 2 million annually thereafter. A special purpose vehicle drives PMI implementation, with procurement already underway.
Adelabu said: “This policy guides all power sector actors, including investors, operators, regulators, and the supervising ministry, to transform the country’s power sector through a data-driven and evidence-based approach.”
Adelabu further outlined renewable energy partnerships with Sun Africa and Skipper Electric to expand solar capacity, alongside plans to fully evacuate power from Zungeru (550 MW of 700 MW currently) and Kashimbila (40 MW) hydropower plants.
The Kaduna thermal plant (215 MW) is expected to be operational by year-end. These efforts, initiated since President Bola Tinubu’s administration began, aim to strengthen Nigeria’s energy security and diversify its energy mix.