Minister of Power Adebayo Adelabu has urged stakeholders to embrace the ongoing reforms in the power sector and work together to build a decentralised and competitive electricity market.
He stated that ongoing reforms driven by the Electricity Act 2023 have attracted over $2 billion in new investments.
Adelabu, who spoke at PwC’s Annual Power and Utilities Roundtable 2025 in Lagos on Thursday, November 27, claimed that the upsurge of new investments in the power sector indicates rising investor confidence in the Federal Government’s present policy direction.
In his keynote address on the theme “Nigeria’s Multi-Tier Electricity Market: Imperatives for Successful Evolution”, Adelabu said Nigeria’s power sector is making a landmark shift from a centralised, monolithic market to a dynamic, multi-tier system in which states can build and manage their own electrical markets.
This decentralised system, he added, is already appealing to investors seeking clarity, competition, and openness.
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He said, “Nigeria’s shift to a multi-tier electricity market is not optional; it is necessary. We must think boldly, challenge assumptions, and work together to deliver a power sector that is inclusive, reliable, and investment-ready.”
Speaking further on the decentralised system, the minister observed that the Electricity Act 2023 has liberalised the power sector, enabling states to regulate, mobilise funds and invest in various segments to boost electricity access for accelerating economic and industrial development.
The minister stated that the commencement of the transition to full commercialisation of the electricity market has led to an N700 billion reduction in government subsidy liabilities, as well as a 70 per cent increase in power sector revenue in 2024.
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Speaking on the recent integration of the Nigerian grid with the West African Power Pool (WAPP), which links Nigeria with 14 West African countries, Adelabu said it is a “remarkable milestone for West Africa” and an indication to investors that Nigeria is improving its system and growing its influence in the energy sector.
He also highlighted efforts by the Federal Government to close the metering gap nationwide, stating that N700 billion has been mobilised from the FAAC to kick off the Presidential Metering Initiative (PMI).
He added that procurement of the meters has begun, assuring that millions of new meters will be delivered to electricity consumers nationwide.
While acknowledging the challenges in the power sector, such as liquidity constraints, ageing infrastructure and regulation, Adelabu assured that they are being addressed by the ministry.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X
