Federal Government through the Ministry of Power has successfully mobilised over $1 billion to de-risk projects and attract additional investments.
The Ministry has also launched the Renewables Investment Platform for Limitless Energy (RIPLE) with $500 million from the Nigeria Sovereign Investment Authority (NSIA).
The Minister for Power, Adebayo Adelabu who disclosed this added that the ministry had finalised the World Bank’s $750 million Distributed Access through Renewable Energy Scale-up (DARES) program scheduled to commence in November. This, he said would deliver electricity to 2.5 million people through solar home systems and mini-grids in underserved areas.
Speaking during the Nigeria Energy Leadership Summit, in Lagos, Adelabu said these initiatives were dedicated to developing renewable energy projects across the value chain, adding it is a critical step in advancing the commitment to achieving Net-Zero emissions by 2060.
On the generation side, the Minister said the ministry had expanded Nigeria’s on-grid generation capacity.
According to him, the inauguration of the 700 megawatt (Mw) Zungeru Hydropower Plant is a major milestone, increasing the generation output and boosting supply levels.
This, he stated had resulted in an average supply of over 5,000Mw, with a peak capacity of 5,527Mw in the month of September.
The transmission and distribution networks have also seen significant upgrades, he added.
Adelabu said through the Presidential Power Initiative, the ministry had added about 600Mw of transmission evacuation capacity in the past year. This, he said was as a result of the accelerated performance agreement signed in November 2023 between President Tinubu and German Chancellor Olaf Scholz.
“These efforts are aimed at modernising the grid infrastructure, reducing losses, and improving the quality of power delivered to consumers. One of the longstanding issues we continue to tackle is the metering gap,” Adelabu stated.
To address this, he said the ministry had launched the Presidential Metering Initiative supported by the World Bank Distribution Sector Reform Program (DISREP).
The DISREP program, he said was aimed at installing 3.2 million meters out of which 1.3 million meters had been procured with the first set of meters to be delivered by December, while the balance would be delivered by second-quarter of 2025.
This initiative, he said would reduce estimated billing, enhance transparency, and improve sector liquidity by ensuring that energy consumers were fairly billed.
Adelabu said the Ministry has prioritised local content development by promoting domestic production of energy components, creating jobs, and reducing reliance on imports.
“We have a mandate in place on the DISREP program that ensures at least 250,000 meters are procured from local manufacturers, the procurement process for this batch is ongoing,” he said, adding that local businesses were central to the energy transformation and economic diversification goals.
He said to achieve the partnerships with state governments in implementing State Electricity Markets and upholding a sustainable national energy security it was important that local capacity was strengthened.
“As we look to the future, our focus remains on fully implementing the Integrated National Electricity Policy and achieving the strategic goals we have set.
“With the 2023 Electricity Act providing the legal framework and the INEP setting the strategic direction, Nigeria is well-positioned to overcome the challenges that have historically plagued the electricity sector,” he said.
Adelabu said the next steps would involve continued investment in infrastructure upgrades, capacity building for local stakeholders, and strengthening regulatory enforcement to ensure that the gains we have made are sustained.
Adelabu maintained that the Ministry had in the first one year set the nation’s power sector on a transformative path, working tirelessly to ensure that it delivered sustainable, reliable, and affordable electricity to Nigerians across the country.
He said: “This has been a year of both challenges and remarkable achievements, and I am proud to say that we have built a solid foundation that positions Nigeria’s power sector for success in the years ahead.” He said one of the greatest achievements in the past year was the enactment of the 2023 Electricity Act, signed into law by Tinubu.
The Minister said this legislation represented a major shift in how the government regulates and manages electricity in the country adding for the first time, sub-national governments have been brought into the fold, empowering them to establish and manage their own electricity markets.
He said already, 10 State Electricity Markets had been created, enabling the creation of a more decentralised, responsive, and competitive electricity supply industry adding this decentralisation is key to fostering innovation, driving investment, and delivering greater energy security for Nigerians.
“At the core of this progress is the Integrated National Electricity Policy (INEP), which has been the result of a collaborative effort involving industry stakeholders, development partners, and consumer groups. This policy provides a comprehensive roadmap to address critical issues in the electricity sector,” Adelabu said.
According to him, the INEP outlines strategic directives to ensure energy security, economic growth, inclusivity and environmental sustainability, focusing on creating a resilient and efficient electricity market that meets the diverse needs of the people.
“Through meticulous planning and teamwork, we now have the strategic direction necessary to bring reliable power to every Nigerian. One of the critical challenges we have faced has been ensuring the financial solvency of the sector,” he said.
To address this, he said the ministry had successfully implemented cost-reflective tariffs for Band A customers, those receiving the highest level of service.
This reform has injected much-needed liquidity into the sector, enabling investments to flow into critical areas. “We have also worked to tighten service level obligations for distribution companies, holding them accountable for their performance,” he said.
The Minister recalled that in April, a DisCo was fined N200 million for failing to meet its service obligations, sending a clear signal that the government was serious about ensuring quality service delivery.
“We have also taken decisive steps to resolve legacy debts owed to gas suppliers, securing presidential approval to settle these obligations,” Adelabu added.
This intervention he insisted had helped prevent disruptions in gas supply, ensuring stable electricity generation as well as providing much-needed reliability to the grid adding the cornerstone of the efforts had been ensuring financial sustainability in the sector.
While expressing the commitment to transparency, accountability, and innovation in all processes, Adelabu said the Federal Ministry of Power, under his leadership, had laid the foundation for a future where every Nigerian has access to reliable, affordable, and sustainable electricity.
(TheNation)
