- The Federal Government’s targeted electricity subsidy protects vulnerable Nigerians while promoting long-term financial stability in the power sector.
- The government seeks to improve service delivery and ensure a sustainable energy future through this initiative and new reforms.
The Federal Government of Nigeria has introduced a targeted electricity subsidy to support low-income households and make power supply more affordable. Minister of Power, Adebayo Adelabu, explained that the plan will balance consumers’ affordability with the power sector’s financial stability.
The government will enforce capital adequacy standards for electricity distribution companies as part of broader reforms. This measure will strengthen liquidity and improve efficiency. In addition, it will modernise the national grid through the Presidential Power Initiative (PPI).
Furthermore, Nigeria has begun exporting locally produced solar panels to Ghana. This marks an important milestone in regional energy trade and industrial growth.
Meanwhile, the 700MW Zungeru Hydropower Plant has increased Nigeria’s generation capacity to 5,300MW. To further enhance grid performance, the government has restructured the Transmission Company of Nigeria (TCN) into two new bodies, the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP). According to Adelabu, this reform is vital for grid efficiency and reliability.
The government allocated ₦700 billion under the Presidential Metering Initiative (PMI) to bridge metering gaps. The funds will help deploy millions of meters nationwide and ensure accurate billing. Moreover, Nigeria is securing over US$2 billion from global partners to expand renewable energy and improve electricity access in rural areas.
In addition, Adelabu highlighted upgrades at the National Power Training Institute of Nigeria (NAPTIN). The new workshops, simulation tools, and hostels will enhance technical training and workforce capacity.
Finally, he noted that the Federal Government welcomes strategic partnerships to unlock more than 10GW of stranded generation capacity. Nigeria aims to build a reliable, inclusive, and sustainable electricity future for all through collaboration.