For the first time in decades, the federal government has released the National Integrated Electricity Policy (NIEP) aimed at transforming Nigeria’s power industry and encouraging the return of over 60% of manufacturing firms that had disconnected from the national grid.
At the launch event, which also introduced the Integrated Resource Plan (IRP) in collaboration with the UK Nigeria Infrastructure Advisory Facility (UKNIAF), Minister of Power Chief Adebayo Adelabu announced a 70% revenue increase in the power sector, rising from N1.05 trillion to approximately N1.7 trillion in 2024, thanks to stakeholder support and the implementation of the Band ‘A’ policy.
Despite Nigeria’s vast energy resources, the power sector faces significant challenges, including unreliable electricity supply and frequent blackouts, which have forced many manufacturers to rely on costly self-generation. Adelabu noted that inadequate gas supply, outdated grid infrastructure, and high technical losses—over 40%—have hindered progress.
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He revealed that Nigeria’s power supply grew by 35% in the past year, emphasizing the need for an estimated $32.8 billion investment in the sector by 2030 to achieve universal electricity access. Of this amount, $17 billion is expected from the public sector, while $15.8 billion will come from private investments.
Adelabu highlighted that addressing the liquidity challenges in the power sector is crucial for sustainability, stating, “The main solution is ensuring that the sector can pay for itself and achieve 100% commercialization.” He reported a significant revenue growth of 70% after implementing cost-reflective tariffs for a portion of the market.
The minister also announced plans to improve metering, with over six million customers currently unmetered, and expressed optimism about procuring three million new meters by mid-year.
Permanent Secretary Mahmuda Mamman emphasized that the NIEP represents a comprehensive framework for universal electrification and urged all stakeholders to collaborate in bringing these plans to fruition.
