WATCH THE VIDEO HERE Naijaonpoint reports that Adelabu shared this information on Thursday, April 17, during the 2025 Ministerial Sectoral Update Conference in Abuja, where he was joined by the Minister of Information and National Orientation, Mohammed Malagi Idris, along with other significant stakeholders. Adelabu attributed this advancement to Nigeria’s involvement in the “Mission 300” initiative, a collaborative effort between the World Bank and the African Development Bank (AfDB) aimed at ensuring electricity access for 300 million Africans by the year 2030. He emphasized that the initiative sets ambitious targets to improve electricity access, promote the use of renewable energy, and enhance clean cooking solutions for millions of Nigerians, stating, “That is Mission 300, and we are making substantial progress in this regard.” He continued, “I’m happy to tell you that out of the 300 million Africans that the World Bank and AfDB aim to reach, Nigeria is on course to account for no less than 25 per cent, which translates to about 75 million Nigerians. When we presented our compact, they agreed with us.” According to Adelabu, Nigeria, with a population of over 240 million, currently provides adequate electricity access to 150 million people. However, he emphasised that the issue is not merely access but the ‘reliability’ of that access. “The real challenge lies in the stability and affordability of electricity. That’s how we measure reliability. We must ensure that those who have access enjoy consistent and affordable power,” he said. The minister urged global financiers to prioritise strengthening Nigeria’s power grid alongside off-grid solutions, warning that over-reliance on renewables risks leaving urban areas and industries behind. “When you’re extending access to the 300 million people under this initiative, let’s not concentrate solely on renewable energy—which is more appropriate for rural communities. “Strengthening grid infrastructure is equally crucial so that those connected to the grid can enjoy reliable power. Otherwise, how do we explain the growing number of Nigerian companies opting out of the national grid to generate captive power?,” Adelabu asked. The minister also highlighted recent improvements in Nigeria’s power generation capacity. “We have increased our generation to 6,003 megawatts, up by 1,700 megawatts since President Tinubu assumed office. If we maintain this trajectory, we can reach 8,000 megawatts before the end of his first term and potentially climb to 23,000 megawatts like other developed countries,” Adelabu declared. He also announced that the Kaduna Power Plant would become operational before the end of 2025. On metering challenges, Adelabu assured Nigerians that “the metering gap will soon be a thing of history.” Focusing on the financial structure of the sector, Adelabu highlighted that the reforms in electricity tariffs had resulted in an additional ₦700 billion in revenue. In April 2024, the Nigerian Electricity Regulatory Commission (NERC) sanctioned a tariff increase for Band A customers—those who receive at least 20 hours of electricity daily—raising the rate from ₦68 to ₦225 per kilowatt-hour. This 230% increase impacted approximately 1.9 million consumers. The government had previously indicated that this increase was essential due to the unsustainable nature of energy subsidies, which were anticipated to reach ₦2.9 trillion in 2024. Even after the tariff hike, ₦2.8 trillion was still allocated for electricity subsidies that year. NERC projected that this tariff adjustment would decrease subsidy liabilities by ₦1.14 trillion. Nevertheless, this decision has faced backlash. The Institute of Chartered Accountants of Nigeria (ICAN) described it as “an additional burden on already struggling citizens.” Similarly, the Abuja Chamber of Commerce and Industry raised concerns regarding the effects on Small and Medium Enterprises (SMEs), pointing to the rise in operating expenses. Despite advancements in electricity generation, Nigeria’s grid remains inadequate. In 2024, the national grid experienced at least 12 collapses, leading to frequent blackouts in major cities such as Abuja, Lagos, and Kano. Minister Adelabu, speaking at the ministerial conference, advocated for the grid to be regionalised to avoid total national blackouts. The Transmission Company of Nigeria (TCN) attributed these failures to ageing infrastructure, vandalism, and an inconsistent gas supply to thermal power plants. The minister also lamented the country’s overreliance on imported power equipment, which he said continues to strain foreign exchange reserves. The unreliability of the national grid has led many Nigerian companies and households to turn to off-grid power solutions. Collectively, petrol and diesel generators now produce around 40,000 megawatts—eight times what the national grid transmits. Some states are actively exploring independent power markets and mini-grids to reduce dependence on central infrastructure. “Until the national grid becomes truly reliable, Nigerians—both businesses and individuals—will continue to seek alternative solutions. Our task is to reverse that trend by fixing the fundamentals,” Adelabu concluded.
The Minister of Power, Adedayo Adelabu, announced that around 150 million Nigerians are currently enjoying sufficient electricity, while 80 million continue to experience unreliable power supply.
Electricity Tariff Reforms Yielding Well