BY AKUDORO GLORIA

Following the cost-reflective tariff adjustment for Band-A customers, the Minister of Power, Chief Adebayo Adelabu on Thursday disclosed that the electricity market generated an additional N700 billion in revenue, representing 70 per cent increase in 2024.

This is even as the Minister disclosed that plans are underway to defray N2 trillion out of the N4 trillion debt owed to Power Generation Companies (GenCos) before the end of the year.

Adelabu who spoke at the sixth edition of the 2025 ministerial press briefing series held in Abuja, hosted by the Minister of Information and National Orientation, Mr. Mohammed Idris, said the market revenue for 2024, rose from NGN 1 trillion in 2023 to NGN 1.7 trillion. Hence, the highest growth previously achieved was 20 per cent.

He explained that the increase positively impacts the reduction of the government’s subsidized tariff shortfall by 35%, decreasing it from NGN 3 trillion to NGN 1.9 trillion.

The Minister further underscored key milestones achieved over the past 100 days which included the development of National Integrated Electricity Policy (NIEP), a transformative frameworks that set a clear roadmap for delivering a resilient, cost-effective, and sustainable power sector.

According to him, the NIEP, which was presented to Mr. President, has been submitted for approval by the Federal Executive Council of Nigeria (FEC).

Another major milestone mentioned was the presentation of the Integrated Resource Plan (IRP), a strategic roadmap that prioritises least-cost electrification and optimized energy resource utilisation.

“Collectively, the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP) present a unique opportunity to transform Nigeria’s power sector through a data-driven and evidence-based approach,” he stated.

Adelabu also highlighted other areas of commitment such as, the signing of Nigerian Energy Compact in January in Dar es Saalem in Tanzania, led by the World Bank and the African Development Bank, that aligns with nation’s aspiration to expand energy generation; the unbundling of the Transmission Company of Nigeria into the Transmission Service Provider (TSP) and the National Independent System Operator (NISO) to ensure clarity of purpose and independence of the System and Market Operators, among other initiatives developed.

Amidst these remarkable achievements, the Minister lamented on some challenges faced by the power sector; which included – the huge outstanding debts to the GenCos in the form of unpaid government subsidies totalling N4trn as of December 2024. N1.94trn is the unpaid subsidy for the year 2024 alone, which is now about N200m monthly.

To ensure the delivery of stable and reliable power supply to Nigerians, the Minister assured that the Ministry is working with the Minister of Finance and Coordinating Minister of Economy to defray debt owed to GenCos through cash payment and promissory notes.

“This debt are unpaid subsidies of the federal government, which is due to the power generating companies (GenCos). Almost half of it was inherited while half of it came from 2024 operations. And I agree with you, there was a publication in the paper where the companies threatened to shut down their plants. I pray not. There are plans underway to make these payments.

“Almost half of it was generated while the other half came from 2024 operations that functioned. And I agree with you, there was a publication in the paper where the companies threatened to shut down their plants. I pray not. There are plans underway to make these payments.

“While I would not say it will be paid 100 per cent, we will be paying it back gradually. And the mode of payment, we have some projections which will facilitate cash payments. While we are also discussing with the generating companies to give them some guaranteed debt instruments, like the promissory notes, which we will give to them to defray some of these debts.

“These promissory notes will be liquid enough for them to be taken to the banks for discounting the need in the case of cash injection. So it is a combination of cash payments and promissory notes. And I can tell that between now to end of the year, we are going to pay close to N2 trillion out of this N4 trillion,” he said.

Furthermore, the Minister called for a collective partnership to address is the rampant vandalism of critical power infrastructure across the nation, coupled with widespread electricity theft and chronic non-payment of bills.

“We are taking decisive action through enhanced security partnerships, community engagement programs, and stricter enforcement measures, but this remains a battle that requires the vigilance and cooperation of all Nigerians to protect these vital national assets that belong to every one of us,” said Adelabu.

Lastly, the Minister addressed the critical issue of poor investment by some sector operators, particularly in distribution infrastructure. He said the investment gap remains a significant bottleneck in the sector’s transformation, noting that the government is implementing stronger performance monitoring and enforcement mechanisms to ensure all licensees meet their obligations to consumers and the electricity market.