FG Secures $2bn Power Investment, Slashes Sector Liabilities

The Federal Government has announced that ongoing reforms in Nigeria’s power sector have attracted over $2 billion in investment while reducing liabilities to about N146 billion.

Minister of Power, Adebayo Adelabu, made this known in Abuja during the inauguration of the Nigeria Electricity Liability Management Company (NELMCO) headquarters, describing the development as a major step toward financial stability in the sector.

He said reforms introduced under President Bola Ahmed Tinubu have significantly improved liquidity, with inherited liabilities dropping from N2.303 trillion and over N700 billion saved through verification and reconciliation processes.

Adelabu noted that the implementation of the Electricity Act 2023 has decentralised the market, enabling about 16 states to operate electricity markets, thereby boosting competition and attracting private sector participation.

He added that the sector recorded a 70 per cent revenue growth in 2024, with generation capacity increasing to 14 gigawatts and a peak of over 5,800 megawatts.

The minister also highlighted ongoing efforts to bridge the metering gap through the Presidential Metering Initiative, backed by government funding and World Bank support.

Despite the progress, Adelabu acknowledged persistent power outages caused by gas supply constraints and infrastructure challenges, but assured Nigerians that measures are underway to improve electricity supply in the coming weeks.