Chief Adebayo Adelabu, the Minister of Power has said Nigeria’s power sector’s revenue rose by 70% in 2024, from ₦1.05 trillion in 2023 to ₦1.7 trillion, on account of cost-reflective tariff adjustments for Band A customers.
He spoke at the 6th edition of the 2025 Ministerial Press Briefing organised by the Ministry of Information and National Orientation in Abuja on Thursday.
Adelabu said the revenue boost reduced the government’s tariff subsidy shortfall by 35%, from ₦3 trillion to ₦1.9 trillion.
The reforms, he said, affected only about 15% of consumers but showed that commercialisation can drive sector sustainability.
He disclosed that a lot of work has gone into market and regulatory reforms.
He emphasized that the National Independent System Operator (NISO) was established, separating grid management from the Transmission Service Provider as mandated by the Electricity Act 2023, to enhance efficiency and governance, while regulatory oversight has been transferred to 11 states, enabling subnational control of electricity markets.
Speaking on the achievements of the current administration in the sector, he said that Nigeria hit a record available generation capacity of 6,003 MW in March 2025, with peak evacuation of 5,801 MW—up from an average of 4,100 MW in Q3 2023, marking nearly 40% growth.
He added that idle capacities at Omotosho and Benin plants were restored, and new mini-grid projects were commissioned in several states, while hydropower and renewable projects are being expanded, with ongoing efforts to fully evacuate Zungeru and Kashimbila plants, and new investments from Sun Africa Energy and Skipper Electric under review.
He lamented the sector faces over ₦4 trillion in unpaid subsidies and debts to generation companies adding that vandalism, electricity theft, and non-payment of bills remain major issues, causing significant financial losses, while underinvestment in distribution infrastructure is a persistent bottleneck.
He added:”It is evident that, due to our transformative tariff reforms, the market has generated an additional ₦700 billion in revenue, reflecting a 70% increase. This results from the cost-reflective tariff adjustment for Band A customers. Market revenue for 2024 rose from NGN 1 trillion in 2023 to NGN 1.7 trillion.
“This growth in market revenue is unprecedented, as the highest growth previously achieved was 20%. This positively impacts the reduction of the government-subsidised tariff shortfall by 35%, decreasing it from NGN 3 trillion to NGN 1.9 trillion. This demonstrates that financial viability and service delivery can coexist harmoniously.
“The establishment of the National Independent System Operator (NISO) marks a major milestone. This is in line with the requirement of the Electricity Act of 2023 which mandates the unbundling of the Transmission Company of Nigeria into the Transmission Service Provider (TSP) and the National Independent System Operator (NISO).
“This separation ensures clarity of purpose and independence of the System and Market Operators. It is important to note that this initiative has been attempted severally in the past with failures recorded, but under the Renewed Hope Agenda of Mr President, His Excellency, President Bola Ahmed Tinubu GCFR, the Board of NISO was inaugurated by the Vice President on April 8th, which will now independently manage grid operations to enhance efficiency and reliability.
