- ₦700 billion allocated for nationwide metering under the Presidential Metering Initiative.
- Over $2 billion raised for renewable energy and rural power expansion.
Nigeria’s power sector reform has gained momentum as the Federal Government launches targeted actions to transform electricity delivery nationwide. These efforts aim to enhance efficiency, expand grid capacity, and ensure a reliable power supply for all Nigerians.
The new approach centres on three priorities: protecting low-income households through targeted subsidies, upgrading the national grid, and accelerating metering to close long-standing service gaps.
Minister of Power, Adebayo Adelabu, outlined these initiatives at the Nigeria Energy Forum in Lagos. He confirmed that a targeted electricity subsidy will protect vulnerable households while promoting commercial sustainability across the sector. This move replaces blanket subsidies with a fairer, data-driven model.
Furthermore, the government will enforce minimum capital adequacy requirements during licence renewals. This policy will strengthen liquidity, attract private investment, and boost consumer confidence.
In addition, the Presidential Power Initiative (PPI) continues to modernise Nigeria’s grid. Phase Zero has already added over 700MW of new transmission capacity. Meanwhile, Phase One aims to deliver 7,000MW and involves partnerships with Siemens Energy, CMEC, Elswedy Electric, and Power China.
The integration of the 700MW Zungeru Hydropower Plant in 2024 increased national generation to 5,300MW, up from 4,200MW in 2023. As part of ongoing reforms, the Transmission Company of Nigeria has been divided into the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP).
The government allocated ₦700 billion from the Federation Account Allocation Committee to tackle metering gaps. Consequently, 1.1 million meters will be installed by 2025, with an additional 2 million meters added annually. Moreover, the World Bank’s Distribution Sector Recovery Programme will deliver an extra 3.2 million meters.
Alongside these efforts, Nigeria has mobilised over $2 billion through the World Bank DARES programme, the NSIA RIPLE platform, and JICA funds. These investments will expand access to renewable energy in rural and underserved communities.
Finally, the Ministry of Power has upgraded the National Power Training Institute with new workshops, simulators, and hostels. This investment will build skilled manpower to sustain Nigeria’s power sector reform and unlock over 10 gigawatts of untapped generation potential.