The Nigerian government will approve a new National Electricity Policy and Strategic Implementation Plan by September this year, according to Minister of Power, Adebayo Adelabu.
Speaking at the BusinessDay energy conference in Lagos on Friday, Adelabu revealed that the policy is in the final stages of documentation and will soon be presented to the Federal Executive Council.
Adelabu highlighted the significant infrastructural challenges facing Nigeria’s power sector, noting that 10 power plants are currently operating below 10 percent capacity. He attributed this inefficiency to outdated infrastructure and insufficient investment in renewable energy, as well as issues with transmission and distribution networks and frequent power outages.
To address these issues, Adelabu stated, “The government believes that a supportive policy and regulatory environment is essential for sustainable energy development, and the government is committed to creating policies that encourage investment, foster innovation, and ensure fair competition in the energy sector.”
The minister also mentioned that Nigeria’s electricity sector has undergone substantial reforms, transitioning from a state-owned system to a predominantly privately owned network. Despite these changes, challenges such as aging infrastructure and inadequate investment in renewable energy persist.
Adelabu identified two key factors limiting power generation: low gas supply and unpaid debts. He explained that gas shortages prevent plants from running at full capacity, while unpaid debts owed to generation companies create liquidity issues.
He emphasized the government’s commitment to enhancing current generating assets and investing in new power plants. “Our focus is on harnessing the rich diversity of our natural resources, from hydro to solar and beyond. Recently, generation capacity to the grid has been expanded with the addition of a 700MW newly commissioned Zungeru hydropower plant,” Adelabu said.
The minister also mentioned that the government has secured Presidential approval to clear legacy debts to gas companies, which will ensure efficient gas supply to the power sector. This, along with a payment mechanism to address debts owed to generation companies, aims to improve the efficiency and reliability of Nigeria’s power supply.
Adelabu reiterated the government’s ambitious target to generate about 30,000 megawatts of electricity by 2030, with renewable energy contributing 30 percent to Nigeria’s energy mix. He acknowledged that insufficient power generation is also due to outdated power plants, underinvestment in new generation infrastructure, and over-reliance on fossil fuels.
On the issue of metering, Adelabu announced that the government has put in place a framework to inject 1.5 million meters into the power sector through the World Bank Distribution Support Recovery Programme. Additionally, the Presidential Metering Initiative will ensure an annual procurement of 2 million meters for five years, aiming to ensure accurate billing, reduce revenue loss, and improve cash flow.
“We are beginning to see some progress from the outcome of the government’s initiative in the last year. However, we will not relent until we have a resilient and efficient electricity sector that meets the needs of all Nigerians,” Adelabu concluded.
