Nigeria’s electricity sector has made significant strides in the past year, with over 40% of the population now receiving up to 20 hours of daily power, according to the Minister of Power, Chief Adebayo Adelabu.
In a statement on Sunday, the minister credited this improvement to various measures implemented by the Ministry of Power, in line with President Bola Tinubu’s Renewed Hope Agenda. The initiative aims to accelerate Nigeria’s industrialization through consistent and reliable electricity.
“The major achievement is the fact that today we generate over 5,500 megawatts of power, we transmit and distribute it, and over 40% of customers today enjoy over 20 hours of regular power supply across the nation. You can see that there is a significant improvement between when we came in and now, which we intend to improve further,” Adelabu revealed.
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This milestone, according to the minister, marks a critical leap forward in the country’s journey toward energy sufficiency.
The progress in Nigeria’s power supply is not just about meeting the energy needs of households but also about supporting the nation’s broader economic ambitions. Adelabu linked the achievements in the power sector to President Tinubu’s goal of enhancing industrial capacity through stable electricity.
“Stable electricity is critical in developed nations, and it is tied to their economic success. This is why we say that we must achieve this for Nigeria as a country,” he said.
Adelabu emphasized that the Ministry’s vision is to provide reliable electricity not only to homes but also to businesses and institutions. This, he believes, will facilitate job creation, enhance operational capacities across industries, and foster economic growth.
Installed Generation Capacity Reaches 14,000 Megawatts
Reflecting on the administration’s progress in the energy sector since it took office, the minister noted that the country’s installed generation capacity has risen from 13,000 megawatts to over 14,000 megawatts. This boost in capacity was largely due to the commissioning of new hydroelectric plants and improvements made to existing facilities.
“Our installed capacity is over 14,000 megawatts of power due to the addition of the newly commissioned Zungeru hydroelectric power plant and improved capacity of some of the existing power plants,” Adelabu stated, emphasizing that this expansion has played a key role in increasing the amount of electricity available to consumers.
He highlighted several strategic reforms implemented by the Ministry to transform the power sector. One of the most critical was the signing of the Electricity Act of 2023, which decentralizes and liberalizes the industry, allowing more competition and investment.
“The signing of the new Electricity Act of 2023 is one of our key achievements, as it has decentralized and liberalized the power sector,” Adelabu said.
This legislation provides states and regions with more control over power generation, transmission, and distribution, paving the way for local solutions to Nigeria’s power challenges.
Moreover, the minister underscored the importance of infrastructure upgrades, explaining that they have been pivotal in achieving the recent improvements in electricity supply.
The electricity that we enjoy today is not by accident. It’s because of all these transformers and mobile substations that we commissioned and installed,” he said, adding that these upgrades have helped to strengthen the power grid and reduce transmission losses, making the system more reliable.
Addressing the Metering Gap
One of the critical challenges facing Nigeria’s power sector has been the metering gap, with millions of customers still without prepaid meters, which hampers accurate billing and revenue collection. To address this issue, the government has introduced the Presidential Metering Initiative, which aims to install over 10 million meters within five years.
“The Presidential Metering Initiative is part of our plan to close the metering gap. We are working to ensure that over 10 million meters are installed over five years,” Adelabu explained.
This initiative, supported by the World Bank’s Distribution Recovery Program, is expected to significantly improve transparency and efficiency in the sector.
This milestone has been widely promoted by the government as evidence of progress in Nigeria’s power sector. However, not everyone is convinced that the achievements are worth celebrating.
“40% Coverage Isn’t Enough for a Population of Over 200 Million”
While the ministry is lauding its achievement, energy experts and analysts have been quick to note that 20 hours of electricity for only 40% of the population—in a country of over 200 million people—is far from sufficient. They argue that while there has been some progress, the majority of Nigerians still do not have reliable access to electricity, and even those who do are paying heavily for the service. This has led some to view the uptick in electricity supply more as a burden than a relief.
The cost of power for consumers has significantly risen recently, largely due to the introduction of a banded tariff system, which charges different rates based on the number of hours customers receive.
The most prominent tariff category is Band A, which applies to consumers who receive 20 hours or more of electricity daily. These customers pay the highest rates, with the tariff costing N209. 5/kwh. For many Nigerians, this has resulted in soaring electricity bills. The Multi-Year Tariff Order (MYTO), which governs the tariff structure, pegs the rates based on service hours, meaning that as the electricity supply improves, so does the cost for the consumer.
Background of Band A Electricity Tariff
The Band A tariff was introduced as part of Nigeria’s power sector reform in 2020 under the Service-Based Tariff (SBT) regime, which aimed to align tariffs more closely with the quality and quantity of electricity being supplied. The idea behind this reform was to ensure that consumers who receive more hours of electricity pay higher rates, while those who receive fewer hours pay lower tariffs.
This tariff band was created as part of the National Mass Metering Program (NMMP) and Service Reflective Tariff (SRT) system, both of which were designed to improve service delivery, make the power attractive to investors, and ensure that distribution companies (DisCos) have the necessary resources to maintain and expand the grid. However, the introduction of the banded tariff system has faced criticism, with many arguing that the quality of service does not justify the high rates being charged.
Optimism for Nigeria’s Electricity Future
However, with this notable progress, Adelabu expressed optimism about the future of the country’s power sector.
“At the end of the day, a large proportion of our population will be electrified, industries will enjoy stable electricity, and this will increase production and create employment for our people,” he said.
The minister’s optimism is grounded in the belief that the ongoing reforms, infrastructure investments, and policy changes will lay the foundation for a more reliable and efficient power sector, capable of supporting Nigeria’s economic transformation.
While the recent achievements are a positive sign that progress is being made, the path toward achieving sustainable, reliable, and affordable power for all Nigerians remains long. Experts argue that until the government addresses the infrastructure gap, and finds a way to balance service improvement with affordable tariffs, many Nigerians will continue to struggle with unreliable and costly electricity.