Power Sector Reforms Attract $2bn Investment, Liabilities Cut to N146bn FGThe Federal Government has announced that ongoing reforms in Nigeria’s power sector have attracted over $2 billion in fresh investment, alongside a sharp reduction in sector liabilities to about N146 billion.Minister of Power, Adebayo Adelabu, disclosed this in Abuja during the inauguration of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO), describing the development as a major step in strengthening the sector’s financial structure.
Adelabu stated that the reforms driven by policy overhaul, market liberalisation, and institutional restructuring are repositioning the electricity industry for sustainability and deeper private sector participation.
He noted that improved liquidity and efficiency have boosted investor confidence, leading to the inflow of new capital. A key highlight of the reform outcomes is the drastic reduction of inherited liabilities from about N2.3 trillion to roughly N146.76 billion.
The government also recorded savings exceeding N700 billion through verification and reconciliation of debts, while disputed claims such as ground rent were cut significantly.
According to the minister, the implementation of the Electricity Act 2023 has been central to the progress, enabling decentralisation of the power sector and allowing states to establish and regulate their own electricity markets.
So far, about 16 state electricity markets have been activated, increasing competition and innovation across the industry. Operationally, generation capacity has risen from 13 gigawatts to 14 gigawatts, with a peak generation of 5,801.44 megawatts recorded.
Sector revenue also grew by about 70 per cent in 2024, reflecting improved cost recovery and efficiency. The government is also addressing the country’s metering gap through the Presidential Metering Initiative, backed by N700 billion from the Federation Account and an additional $500 million World Bank facility, aimed at deploying millions of electricity meters nationwide.
Despite these gains, the minister acknowledged persistent challenges, including gas supply constraints and infrastructure deficits, which continue to affect electricity supply nationwide. He, however, maintained that ongoing reforms are laying the foundation for a more stable, commercially viable, and investor-friendly power sector capable of supporting economic growth.
Source : Nairametrics
