- The Federal Government pledged to reform the power sector by adopting cost-reflective tariffs and targeted subsidies.
- Minister Adebayo Adelabu announced a $32.8bn investment plan for Mission 300, with $15.5bn expected from the private sector to help connect 300 million Africans to electricity.
The Federal Government has reaffirmed its commitment to reforming the power sector, prioritising sustainability, bankability, and inclusive access to support economic growth and development.
Chief Adebayo Adelabu, Minister of Power, made this known on Tuesday, July 8, at the Mission 300 Stakeholders Engagement in Abuja. He disclosed that the estimated investment required for the Mission 300 Energy Compact is $32.8 billion. Of this, $15.5 billion is expected to come from private sector partners.
Meanwhile, Mission 300 aims to connect 300 million unserved people across Africa to electricity by 2030. Adelabu noted that Nigeria remains on track to develop a cost-reflective electricity pricing structure while introducing targeted subsidies to protect economically vulnerable citizens.
“This meeting is not just symbolic,” he said. “It’s a critical opportunity for stakeholders to align, strategise, and forge the partnerships needed to turn the Nigeria Energy Compact into tangible outcomes.”
In addition, Adelabu urged development partners, private investors, civil society, and philanthropic organisations to rally around the initiative, stressing the need for coordinated efforts and bold commitments.
“Mobilising this financing scale will require innovation, collaboration, and a shared resolve,” he said. “Let’s ask the tough questions, craft practical solutions, and chart a clear course toward powering our hospitals, schools, industries, and homes.”
He listed the government’s priorities for power sector reform, including resolving market liquidity challenges and addressing sector-wide inefficiencies. As of December 2024, the government owes about N4 trillion to power generation companies in unpaid subsidies.
To address this, Adelabu said the government is developing a strategy to clear the debt and prevent further accumulation by transitioning to cost-reflective tariffs, complemented by targeted subsidies.
Furthermore, other key reform focus areas include recovering idle generation capacity and diversifying the energy mix with cheaper, cleaner sources, expanding transmission infrastructure to boost supply and grid stability, strengthening grid management to curb frequent collapses, improving distribution efficiency through programmes like the Presidential Metering Initiative and the World Bank’s Distribution Sector Recovery Programme and scaling up renewable energy for rural electrification and underserved communities through the energy transition programme.
Adelabu also expressed gratitude to global partners, including the World Bank Group, the African Development Bank, the Rockefeller Foundation, Sustainable Energy for All, and the Global Energy Alliance for People and Planet, for championing Mission 300.
“This shared ambition to connect 300 million people reflects our belief that energy access is not optional; it is essential to unlocking Africa’s economic potential,” he said.
Minister of Finance Wale Edun, joining the meeting virtually from Brazil, added that the ongoing reforms in the power sector are crucial to boosting economic productivity and job creation.
“The power sector is key to Nigeria’s industrialisation,” Edun stated. “Fixing it is non-negotiable for achieving our growth targets.”