Federal Government Targets GenCos Debt Resolution Amid Power Sector Crisis

Nigeria will require an estimated $10 billion each year for the next 10 to 20 years to resolve its persistent power supply issues, according to the Minister of Power, Adebayo Adelabu. Speaking during the commissioning of a 600kW Solar PV power plant at the Nigerian Defence Academy (NDA) in Kaduna, the Minister described the challenge as daunting yet essential, stating that consistent investment and strategic reforms are critical to achieving stable electricity.

“For us to achieve functional reliable and stable electricity in Nigeria, we need not less than 10 billion dollars annually for the next ten to twenty years,” he said, while highlighting the importance of laying the right groundwork to ensure that such investments are effective. Adelabu noted that one of the key milestones has been the signing of the Energy Bill into law by the Tinubu administration, which he said has decentralised the power sector, enabling federal, state, and local governments to play active roles in electricity generation, transmission, distribution, and metering.

He pointed out that over eleven states have already been empowered to operate within the power sector under this new framework, and more are expected to follow. Adelabu also stressed the urgency of addressing decades of infrastructural neglect, particularly in the national transmission grid, which he said has suffered from underinvestment and poor maintenance.

Another priority area, the Minister explained, is metering. With over 50 percent of electricity consumers still unmetered, he said a Presidential initiative is underway to install 18 million meters across the country within the next five years, as part of efforts to improve billing accuracy and energy accountability.

Addressing officers at the NDA, Adelabu expressed pride in commissioning both the 600kW plant and a larger 3MW Solar PV installation, projects executed by the Federal Ministry of Power and the Rural Electrification Agency. He noted these efforts align with the broader goal of expanding clean and reliable electricity access to key institutions, particularly those central to education and national security.

Nigeria Requires $10 Billion Annually to Overhaul Power Sector – Adelabu

“These projects, implemented by the Federal Ministry of Power and the Rural Electrification Agency not only underscores our commitment to improving electrification across key institutions in Nigeria but it is also part of our broader mandate to diversify our energy sources, expand access to clean and reliable electricity, and support critical sectors of our national development, including education and security,” Adelabu said.

He described the NDA as a vital national institution combining academic excellence and military training, which requires dependable infrastructure to function effectively. Powering the Academy with solar energy, he explained, aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritises universal energy access as a cornerstone of national development.

Adelabu also praised the Nigerian Armed Forces for their crucial role in protecting power infrastructure across the country, especially in the face of increasing incidents of vandalism and assaults on electricity personnel. He called for continued cooperation between the military and the power sector and addressed recent tensions, referring to an incident involving military personnel and Ikeja Electric staff, which he described as “regrettable and counterproductive.”

“The power sector and the military are not on opposing sides, we are allies in the pursuit of national development. Our shared objective is a Nigeria where sustainable electricity supply supports growth, security, and prosperity for all,” the Minister emphasised.

In his welcome speech, NDA Commandant Major General Abdul Ibrahim commended the initiative, expressing his appreciation for the collaboration and reaffirming the Academy’s commitment to working closely with the Ministry of Power.