The Minister of Power, Chief Adegoke Adelabu has said that over $2 billion has been raised through to accelerating renewable energy deployment and expand reliable, affordable power across Nigeria.
At the Nigeria Energy Forum 2025, holding in Lagos, the Minister said that Nigeria has been advancing its energy transition and access goals by ‘leveraging bilateral funding and development finance to de-risk investments and attract private participation for access expansion across underserved and unserved communities, educational institutions, healthcare facilities and government institutions’.
Adelabu further said: ‘In the past two years, over $2 billion has been mobilised through key facilities, including the $750 million World Bank DARES (Distributed Access through Renewable Energy Scale-up) programme for off-grid and mini-grid expansion, the $500 million NSIA RIPLE (Nigeria Sovereign Investment Authority’s Renewables Investment Platform for Limitless Energy) platform to unlock private capital for renewables, and the $190 million JICA (Japan International Cooperation Agency) fund to complement DARES. Collectively, these interventions are accelerating renewable energy deployment and expanding reliable, affordable power across the country’.
He said that Nigeria now has over 10 GW of stranded generation capacity, explaining that this is energy that could power industries, create jobs, and support electricity exports to the neighboring countries through the regional power pool.
‘We are therefore open to strategic partnerships to mobilise the necessary investments and unlock this potential. Our market fundamentals are improving, our policy environment is clear, and the national leadership is committed to creating the enabling conditions for long-term investment and innovation’, Adelabu told his audience.
He spoke of Nigeria’s aspiration, along with its partners, ‘to build a resilient, inclusive, and sustainable energy future’. Such a move, the Minister further said, ‘speaks not only to the urgent need for capital infusion but also to the transformative role of collaboration, especially with the private sector in driving progress’.
He said that the Federal Government is pursuing a comprehensive, multi-pronged approach to reposition the Nigerian power sector for sustainability, efficiency, and growth. ‘This approach spans critical pillars which include legislation, policy reforms, infrastructure development, energy transition and access expansion, and local content and capacity development with each designed to address structural challenges, unlock private capital, and enhance service delivery across the electricity value chain’, Adelabu said.
He pointed at the enactment of the Electricity Act 2023 as a major milestone, which provides a robust governance and regulatory framework for the Nigerian Electricity Supply Industry.
The Minister said that one of the essence of the Act is that it devolves regulatory powers to the states, enables subnational markets, promotes competition, and empowers private participation across the value chain.
‘This represents a clear shift towards a liberalised and investment-friendly electricity market. Since its passage, 15 states have received regulatory autonomy to establish subnational electricity markets with one fully operationalised. We are working actively with these states to ensure strong alignment between the wholesale market and the retail market. In this regard, we believe the active involvement of state governments, particularly in the off-grid segment is critical, given the series of roundtable engagements held with governors by the Rural Electrification Agency, as well as the ongoing efforts to closely track the Distribution Companies’ performance within their respective jurisdictions’, he said.
He said that the development of the Integrated National Electricity Policy, initiated by his Ministry and approved by the Federal Executive Council last February, ‘marks the first comprehensive, sector-wide policy framework in nearly two decades, and we deeply appreciate the industry experts and development partners many of whom are here today for their invaluable contributions in achieving this milestone’.
Adelabu told the Forum that the Nigerian government is deepening power sector commercialisation to strengthen revenue, liquidity, and investor confidence. He added: ‘Through tariff policy reforms, which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries, and industry revenue has increased by 70% to N1.7 trillion in 2024 compared to previous year and the revenue is expected to exceed N2 trillion for 2025.
‘To stabilise the market, Mr. President has approved a N4 trillion bond to clear verified GenCo (electricity generating companies) and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialization and viable industry’.
He said that the Federal Government has operationalised the Presidential Metering Initiative (PMI) to close the national metering gap and improve sector viability.
According to the Minister,N700 billion has been secured from FAAC (Federation Accounts and Allocation Committee) to deploy 1.1 million meters by end of 2025, and two million annually over the next five years under the PMI. ‘This complements the 3.2 million meters being procured through the World Bank’s DISREP program, positioning Nigeria to close the metering gap within five years and strengthen transparency and revenue assurance across the value chain’, he said.
