By : Chinasaokwu Helen Okoro
Nigeria’s Power Push: Reforms Set to Drive ₦2 Trillion Disco Revenue by Year-End — Adelab
Power sector is on the brink of a major revenue boost, with Distribution Companies (Discos) projected to generate ₦2 trillion by December 2025, thanks to ongoing federal reforms, infrastructure upgrades, and tariff adjustments. Minister of Power, Chief Adebayo Adelabu, disclosed this on Monday during an expert forum in Abuja, themed “Uninterrupted Power: The Industrial Imperative,” organised by the Nigeria Economic Summit Group (NESG)
Adelabu, who marked over two years in office, outlined key achievements and policy measures aimed at repositioning the electricity industry for sustainability, efficiency, and growth. He revealed that over 700 megawatts (MW) of additional transmission capacity had been achieved under his watch, with several transformative projects currently underway.
“Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries. Industry revenue increased by 70 per cent to ₦1.7 trillion in 2024, and it is expected to exceed ₦2 trillion in 2025,” he stated.
Light Up Nigeria and Tariff Reforms
Central to the government’s power strategy is the Light Up Nigeria initiative, which seeks to boost industrialisation by delivering stable power to key industrial clusters. The programme has already launched in Agbara Industrial Hub in Lagos State and in Enugu State, with plans to expand nationwide.
Adelabu said the government is exploring differential or time-of-use tariffs for industries, particularly during off-peak hours. This, he noted, would encourage higher energy offtake, boost productivity, and create jobs for Nigeria’s growing population.
Policy, Legislation, and Subnational Markets
The enactment of the Electricity Act 2023 stands out as a major milestone in the sector. The law devolves regulatory powers to states, promotes competition, and encourages private sector participation across the electricity value chain. Since its passage, 15 states have secured regulatory autonomy to establish subnational electricity markets, with one already fully operational.
The Federal Executive Council (FEC) in February approved the Integrated National Electricity Policy and Strategic Implementation Plan — the first comprehensive sector-wide policy framework in nearly two decades. This roadmap aims to harmonise policies and guide long-term growth in the electricity industry.
Infrastructure Development and Generation Boost
To stabilise the market, President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to generation companies (Gencos) and gas suppliers. This financial intervention is complemented by targeted investments to modernise and expand the national grid.
Under Phase Zero of the Presidential Power Initiative (PPI), grid stability has improved, while Phase One — supported by contracts with Siemens Energy, CMEC, Elswedy Electric, and Power China — is expected to add 7,000 MW of operational capacity.
Parallel efforts are focused on expanding generation through the rehabilitation of existing National Integrated Power Project (NIPP) plants to unlock 345 MW, as well as integrating the 700 MW Zungeru Hydropower Plant. These combined measures have raised average generation capacity to 5,300 MW in 2024, up from 4,200 MW in 2023.
Closing the Metering Gap
The federal government has also operationalised the Presidential Metering Initiative (PMI) to tackle Nigeria’s longstanding metering gap. A ₦700 billion facility from the Federation Account Allocation Committee (FAAC) will fund the deployment of 1.1 million meters by the end of 2025 and 2 million annually over the next five years. This complements 3.2 million meters being procured through the World Bank’s DISREP programme, aiming to close the gap within five years.
Energy Transition and Financing
To expand access and accelerate renewable energy deployment, Nigeria is leveraging development finance and bilateral funding. Over $2 billion has been mobilised through facilities such as the $750 million World Bank DARES programme for off-grid expansion, the $500 million NSIA RIPLE platform, and a $190 million JICA fund.
Talks are also underway with China’s Export-Import Bank for a $2 billion loan to build a new “super grid” to decentralise power generation and improve supply to industrial zones.
Capacity Building and Local Content
On local content development, new facilities have been commissioned at the National Power Training Institute of Nigeria (NAPTIN) to enhance technical capacity. Additionally, a 1.2GW solar power project agreement was signed between the Rural Electrification Agency (REA) and Oando Clean Nigeria’s Power Push: Reforms Set to Drive ₦2 Trillion Disco Revenue by Year-End — Adelabu
Nigeria’s power sector is on the brink of a major revenue boost, with Distribution Companies (Discos) projected to generate ₦2 trillion by December 2025, thanks to ongoing federal reforms, infrastructure upgrades, and tariff adjustments. Minister of Power, Chief Adebayo Adelabu, disclosed this on Monday during an expert forum in Abuja, themed “Uninterrupted Power: The Industrial Imperative,” organised by the Nigeria Economic Summit Group (NESG).
Adelabu, who marked over two years in office, outlined key achievements and policy measures aimed at repositioning the electricity industry for sustainability, efficiency, and growth. He revealed that over 700 megawatts (MW) of additional transmission capacity had been achieved under his watch, with several transformative projects currently underway.
“Through tariff policy reforms which enabled cost-reflective tariffs for select consumers, supply reliability has improved while reducing energy costs for industries. Industry revenue increased by 70 per cent to ₦1.7 trillion in 2024, and it is expected to exceed ₦2 trillion in 2025,” he stated.
Light Up Nigeria and Tariff Reforms
Central to the government’s power strategy is the Light Up Nigeria initiative, which seeks to boost industrialisation by delivering stable power to key industrial clusters. The programme has already launched in Agbara Industrial Hub in Lagos State and in Enugu State, with plans to expand nationwide.
Adelabu said the government is exploring differential or time-of-use tariffs for industries, particularly during off-peak hours. This, he noted, would encourage higher energy offtake, boost productivity, and create jobs for Nigeria’s growing population.
Policy, Legislation, and Subnational Markets
The enactment of the Electricity Act 2023 stands out as a major milestone in the sector. The law devolves regulatory powers to states, promotes competition, and encourages private sector participation across the electricity value chain. Since its passage, 15 states have secured regulatory autonomy to establish subnational electricity markets, with one already fully operational.
The Federal Executive Council (FEC) in February approved the Integrated National Electricity Policy and Strategic Implementation Plan — the first comprehensive sector-wide policy framework in nearly two decades. This roadmap aims to harmonise policies and guide long-term growth in the electricity industry.
Infrastructure Development and Generation Boost
To stabilise the market, President Bola Tinubu has approved a ₦4 trillion bond to clear verified debts owed to generation companies (Gencos) and gas suppliers. This financial intervention is complemented by targeted investments to modernise and expand the national grid.
Under Phase Zero of the Presidential Power Initiative (PPI), grid stability has improved, while Phase One — supported by contracts with Siemens Energy, CMEC, Elswedy Electric, and Power China — is expected to add 7,000 MW of operational capacity.
Parallel efforts are focused on expanding generation through the rehabilitation of existing National Integrated Power Project (NIPP) plants to unlock 345 MW, as well as integrating the 700 MW Zungeru Hydropower Plant. These combined measures have raised average generation capacity to 5,300 MW in 2024, up from 4,200 MW in 2023.
Closing the Metering Gap
The federal government has also operationalised the Presidential Metering Initiative (PMI) to tackle Nigeria’s longstanding metering gap. A ₦700 billion facility from the Federation Account Allocation Committee (FAAC) will fund the deployment of 1.1 million meters by the end of 2025 and 2 million annually over the next five years. This complements 3.2 million meters being procured through the World Bank’s DISREP programme, aiming to close the gap within five years.
Energy Transition and Financing
To expand access and accelerate renewable energy deployment, Nigeria is leveraging development finance and bilateral funding. Over $2 billion has been mobilised through facilities such as the $750 million World Bank DARES programme for off-grid expansion, the $500 million NSIA RIPLE platform, and a $190 million JICA fund.
Talks are also underway with China’s Export-Import Bank for a $2 billion loan to build a new “super grid” to decentralise power generation and improve supply to industrial zones.
Capacity Building and Local Content
On local content development, new facilities have been commissioned at the National Power Training Institute of Nigeria (NAPTIN) to enhance technical capacity. Additionally, a 1.2GW solar power project agreement was signed between the Rural Electrification Agency (REA) and Oando Clean Energy, incorporating a recycling line to promote sustainability in solar deployment.
> “Our ultimate goal is to increase local content in the electricity value chain and ensure continuous capacity development to drive the sector’s sustainability,” Adelabu affirmed.
With these reforms, Nigeria’s power sector appears poised for its most ambitious transformation in decades — one that could unlock industrial growth, attract private investment, and deliver stable power to millions.Energy, incorporating a recycling line to promote sustainability in solar deployment.
> “Our ultimate goal is to increase local content in the electricity value chain and ensure continuous capacity development to drive the sector’s sustainability,” Adelabu affirmed.
With these reforms, Nigeria’s power sector appears poised for its most ambitious transformation in decades — one that could unlock industrial growth, attract private investment, and deliver stable power to millions.
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