Nigeria’s power sector has recorded an unprecedented ₦700 billion increase in revenue in 2024, representing a 70% year-on-year growth, according to the Minister of Power, Mr Adebayo Adelabu.
Speaking at the 6th edition of the 2025 Ministerial Press Briefing Series on Thursday in Abuja, Adelabu attributed the surge to the recent implementation of transformative tariff reforms.
“It is evident that, due to our transformative tariff reforms, the electricity market generated an additional ₦700 billion revenue in 2024, reflecting a 70 per cent increase from what was collected in 2023,” he stated.
He explained that the rise in revenue was largely driven by the adjustment of cost-reflective tariffs for Band A customers. This marks the highest growth rate the sector has ever experienced, significantly surpassing the previous record of 20%.
In addition to boosting revenue, Adelabu noted that the reforms had contributed to a substantial reduction in the government’s tariff subsidy burden. “This positively impacts the reduction of the government-subsidised tariff shortfall by 35 per cent, decreasing it from ₦3 trillion to ₦1.9 trillion,” he said.
The Minister stressed that this progress demonstrates the potential for financial viability and improved service delivery in Nigeria’s electricity value chain—provided that key reforms are maintained.
Expanding Energy Access across Africa
Adelabu also highlighted President Tinubu’s administration’s commitment to expanding energy access in Nigeria and across the African continent.
He referenced Nigeria’s endorsement of the Nigerian Energy Compact, signed in January 2025 at a summit in Tanzania, as a strategic move under the Mission 300 initiative.
“Mission 300 targets extending electricity access to 300 million Africans by 2030, out of the 600 million currently without access,” he said.
The Compact, spearheaded by the World Bank and the African Development Bank (AfDB), is anchored on five key strategies:
- Expanding electricity generation to meet demand
- Strengthening the operational and financial stability of power utilities
- Encouraging greater private sector investment
- Accelerating renewable energy adoption
- Promoting regional energy market integration for cross-border collaboration and efficiency
Additionally, it supports clean cooking initiatives and seeks to improve Nigeria’s energy mix with a strong emphasis on sustainability.
Policy and Sector Reform
In line with the Electricity Act of 2023, the Ministry of Power has developed the National Integrated Electricity Policy (NIEP), aimed at delivering a long-term roadmap for power sector reform and modernisation.
Adelabu announced that the NIEP had been submitted to the Federal Executive Council for approval. “It will serve as a guiding framework for all stakeholders—including investors, operators, regulators, and government agencies,” he explained.
The Minister underscored that the NIEP adopts a data-driven, evidence-based approach to ensure transparency, accountability, and to boost investor confidence in the sector.
International Support
In January 2025, the African Development Bank and the World Bank Group pledged a combined $40 billion to support Mission 300. The funding will play a key role in realising the goal of providing sustainable electricity to 300 million Africans by 2030.