- Power Minister Adebayo Adelabu claims fewer Nigerians rely on generators due to improved electricity supply despite petrol prices exceeding N1,000 per litre.
- Nigeria’s power generation has increased by only 2,000 MW in 40 years, currently averaging 5,000 MW, with a peak of 5,527 MW.
- The government aims to attract over $10 billion in annual investments to stabilise the power sector and plans to deploy 1.3 million meters by mid-2025.
Power Minister Adebayo Adelabu claims fewer Nigerians rely on generators despite the sharp rise in petrol prices. Speaking at the 2024 Nigeria Energy Exhibition in Lagos, Adelabu said many citizens no longer need generators for electricity.
With petrol now over N1,000 per litre, Adelabu noted that people have stopped complaining because they aren’t buying as much gasoline to power generators. “If Nigerians still needed petrol at N1,000 for power, the outcry would be much louder,” he said.
Adelabu revealed the government’s plan to replace all generators across the country, which aligns with Lagos State’s target to phase out one million generators annually.
Power Generation Concerns
Adelabu expressed disappointment over Nigeria’s slow growth in power generation. He said the country added only 2,000 megawatts (MW) to the grid in the last 40 years. “For over 200 million people, celebrating 5,000 MW is not an achievement,” Adelabu said, pointing out that current capacity averages 5,000 MW, with a peak of 5,527 MW in September.
Revenue Potential
Adelabu believes the Nigerian Electricity Supply Industry (NESI) can generate between N3 trillion and N5 trillion annually with proper tariffs. He noted NESI earned N1 trillion in revenue in 2023 and expects to double that by the end of 2024.
He argued higher revenues would allow the sector to invest in critical infrastructure, including replacing outdated transformers and repairing power lines.
Adelabu also announced the government has started repaying debts to power-generating companies (Gencos) and gas suppliers. He disclosed that the government owes N1.3 trillion to Gencos and $1.3 billion to gas suppliers.
Investment Drive
The minister outlined efforts to attract investments to the energy sector. He highlighted over $1 billion in secured funds, including $500 million from the Renewable Investment Platform Limitless Energy (RIPLE) and $750 million from the World Bank’s DARES project. The DARES program will provide over 2.5 million people with solar power through mini-grids and solar home systems.
Adelabu emphasised the need for $10 billion in annual investments over the next decade to stabilise the sector. He urged the private sector to play a vital role in meeting this goal.
Grid Collapse and Power Disruptions
Despite reforms, Nigeria’s power sector continues to face grid collapses. A nationwide blackout followed a grid disturbance on Monday. The Transmission Company of Nigeria (TCN) reported the incident but assured the public it restored 90% of the grid.
Frequent power grid failures continue to disrupt supply, leading to calls for better infrastructure investments to prevent future collapses.
Metering and Local Manufacturing
Power Minister Adelabu announced plans to deploy 1.3 million meters by mid-2025 as part of the Nigeria Distribution Sector Recovery Program (DISREP). This initiative aims to reduce estimated billing and increase transparency.
He also promoted local manufacturing, stating that 250,000 meters would come from Nigerian manufacturers. This move aims to create jobs and reduce reliance on imports.
In closing, Adelabu reaffirmed the government’s commitment to improving financial sustainability in the power sector through reforms and investments.