BREAKING: Nigeria Hits All-Time High in Power Generation, Rakes in ₦700 Billion from Tariff Reforms — Minister Adelabu

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Nigeria’s power sector is witnessing unprecedented progress as the Federal Government hits major milestones in generation, revenue growth, and reforms—marking a turning point in the nation’s decades-long struggle with electricity supply.

Speaking at the sixth edition of the Ministerial Press Briefing Series in Abuja, the Minister of Power, Chief Adebayo Adelabu, announced that Nigeria has, for the first time in its history, achieved 6,003 megawatts of available power generation capacity. This record-breaking feat, reached on March 2, 2025, was followed two days later by an energy evacuation peak of 5,801MW and a daily output of over 128,000 megawatt-hours—both historic highs. In comparison to the third quarter of 2023, average daily generation has increased from 4,100MW to 5,700MW, representing nearly 40 percent growth under the current administration.

Adelabu credited these achievements to coordinated reforms, private sector collaboration, and strategic investments. One of the standout successes is the ₦700 billion increase in market revenue in 2024, driven by the adoption of cost-reflective tariffs for Band A customers. This has boosted overall sector revenue from ₦1 trillion in 2023 to ₦1.7 trillion—a 70 percent growth that has helped reduce the government’s subsidy shortfall by ₦1.1 trillion, from ₦3 trillion to ₦1.9 trillion. “This is clear proof that financial sustainability and service improvement can go hand in hand,” Adelabu said.

The Minister also highlighted major policy achievements, including the completion of the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP), both of which outline a data-driven roadmap to improve energy access, attract investment, and support economic growth. He confirmed the policies have been submitted to the Federal Executive Council for approval.

In line with regional integration goals, Nigeria signed onto the M300 Energy Compact in Tanzania in January, joining other African nations in a push to connect 300 million people to electricity by 2030. The initiative is supported by the World Bank and African Development Bank and aims to expand generation, improve utility performance, and accelerate the adoption of renewables across the continent.

The minister also announced the successful operationalization of the National Independent System Operator (NISO), a long-awaited step mandated by the Electricity Act 2023. The system operator, which was previously part of the Transmission Company of Nigeria (TCN), will now manage grid operations independently—a move expected to enhance reliability and investor confidence. He revealed that regulatory oversight of electricity markets has been successfully handed over to 11 states, empowering subnational governments to take control of their own energy futures.

While celebrating stability in the national grid—with no major collapses recorded so far in 2025—Adelabu attributed the improvement to strategic investments under the Presidential Power Initiative (PPI). The initiative, which delivered infrastructure upgrades across 13 states and added 700MW to the grid, has now received approval to move into Phase One, in partnership with global giants Siemens, CMEC, Elswedy, and Power China.

Rural electrification and renewable energy are also gaining momentum. New mini-grid projects were commissioned across Plateau, Cross River, Niger, Oyo, and Osun states, supplying thousands of households with clean power. Nigeria’s push for cleaner energy also received a boost with a 1.2-gigawatt solar plant agreement signed with Oando Clean Energy, which includes a solar panel recycling component—a first for the country. The Kaduna thermal plant, inactive for six years, is now 87 percent complete and expected to be revived by the end of the year. Meanwhile, feasibility studies are ongoing for the Makurdi hydro project, which could add up to 1,500MW of capacity, and the previously abandoned Kastina wind farm is being reassessed in partnership with the state government.

The minister also touched on efforts to close the long-standing metering gap. Through the Presidential Metering Initiative, backed by a ₦700 billion FAAC allocation, Nigeria plans to roll out 1.1 million meters by the end of 2025 and two million annually for the next five years. Additionally, over 3.2 million meters will be deployed under the World Bank-funded Distribution Sector Recovery Program (DISREP), with the first batch already received in April.

Adelabu acknowledged persistent challenges, including ₦4 trillion in unpaid subsidies owed to generation companies, vandalism of power infrastructure, widespread electricity theft, and chronic non-payment of bills—all of which continue to undermine service delivery and investment. He stressed that the current subsidy structure is no longer sustainable, urging collective action to adopt a new model that balances affordability with financial viability.

In conclusion, the Minister said the gains made in the first 100 days of 2025 reflect a new level of commitment to real, measurable impact in the power sector. “These aren’t just numbers—they mean more jobs, stronger businesses, and improved lives. We are just getting started,” he said.