Nigeria’s power sector is witnessing major progress, with over $2 billion in new investments recorded since President Bola Tinubu assumed office.
Minister of Power, Adebayo Adelabu, revealed this during the PwC Annual Power and Utilities Roundtable in Lagos.
Out of Nigeria’s 13 million registered electricity users, only six million are metered, leaving millions on unreliable estimated billing.
Adelabu said the government is closing this gap through the Presidential Metering Initiative, which plans to deploy 10 million meters in five years, and the $500 million District Sector Recovery Programme.
He added that the new digital systems will allow real-time meter tracking, improve revenue collection, and ensure consumers pay only for actual usage.
A major shift in the sector is the Electricity Act 2023, which allows states to generate and distribute electricity independently.
This has led to the rise of state-level electricity markets, enabling regions to design energy solutions that meet their local needs.
Nigeria also now has a long-awaited National Integrated Electricity Policy, establishing clear roles for regulators, investors, and consumers across the sector.
Adelabu said electricity revenue jumped from N1 trillion in 2023 to N1.7 trillion in 2024, with projections of N2.3 trillion by the end of 2025.
He stressed that the increase is not due to tariff hikes but because more Nigerians are switching from generator spending to grid supply.
Grid Stability Improves Dramatically
Generation capacity has grown from 13GW to 14GW.
Nigeria also recorded its highest peak generation of 5,801MW and saw only one grid collapse in 2025, compared to 12 in 2024.
Nigeria recently achieved a major milestone by successfully synchronising its grid with the West African Power Pool, a step towards exporting power to neighbouring countries.
Lagos Energy Commissioner Abiodun Ogunleye urged Nigerians to give the new decentralised electricity model at least three years to show full impact.
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PwC’s Sam Abu also stressed the need for strong regulation, investment, and collaboration to sustain reforms.
