The Federal government has stated that a targeted electricity subsidy is being developed to protect vulnerable households while ensuring the long-term commercial viability of the industry.
The Minister of Works, Adebayo Adelabu, who made the disclosure at the Nigeria Energy Forum yesterday in Lagos, stated that the government will also introduce a minimum capital adequacy requirement for distribution companies (DisCos) during their license renewal process, to strengthen liquidity and improve service delivery.
The minister also disclosed that Nigeria has commenced export of locally produced solar panels to Ghana, signalling the country’s readiness to serve regional power markets.
He explained that a targeted national programme to accelerate grid expansion and modernisation under the Presidential Power Initiative (PPI) is in progress.
He said Phase Zero of the PPI has already delivered over 700MW of additional transmission capacity, while Phase One — expected to add 7,000MW — is underway, with contracts signed with Siemens Energy, CMEC, Elswedy Electric, and Power China.
Adelabu also announced the successful integration of the 700MW Zungeru Hydropower Plant into the national grid, which helped raise average generation capacity to 5,300MW in 2024, up from 4,200MW in 2023. He confirmed that the Federal Government has unbundled the Transmission Company of Nigeria (TCN) into the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP) — a reform he described as “long overdue and vital to grid efficiency.”
To address metering gaps, he said N700bn from the Federation Account Allocation Committee (FAAC) has been secured under the Presidential Metering Initiative (PMI) to deploy 1.1 million meters by the end of 2025, and 2 million meters annually for the next five years. This, he added, complements the 3.2 million meters being procured through the World Bank’s DISREP programme.
Adelabu revealed that the Federal Government is mobilising over $2 billion through key facilities — including the $750 million World Bank DARES programme, the $500 million NSIA RIPLE platform, and the $190 million JICA fund — to drive renewable energy expansion and increase power access across rural and underserved communities.
He said the Ministry recently upgraded training infrastructure at the National Power Training Institute of Nigeria (NAPTIN), with new workshops, simulation tools, and hostel facilities to enhance capacity building.
“At the 2025 Nigerian Renewable Energy Innovation Forum, we signed agreements that will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity — equivalent to 80 per cent of our current national generation capacity,” Adelabu announced.
The Minister reaffirmed that Nigeria’s power sector is now more open and investment-ready than ever before, calling on private developers and financiers to take advantage of emerging opportunities, particularly in transmission infrastructure.
“With over 10 gigawatts of stranded generation capacity, we are open to strategic partnerships to mobilise the investments required to unlock this potential,” he stated.
He urged stakeholders to think boldly, collaborate strategically, and invest purposefully, adding that the opportunities before Nigeria are immense — not just to bridge the power gap but to ignite industrial growth, technological innovation, and shared