The Federal Government has secured over $2 billion in new investments following power sector reforms driven by the Electricity Act 2023.
Minister of Power, Adebayo Adelabu, disclosed this while delivering a keynote address with the theme “Nigeria’s Multi-Tier Electricity Market: Imperatives for Successful Evolution,” on Thursday, at PwC’s Annual Power and Utilities Roundtable 2025 in Lagos.
He said the inflow of fresh investments reflects growing investor confidence in the Federal Government’s current policy direction.
The minister said to him, Nigeria’s power sector is undergoing a historic transition from a centralised, monolithic market to a dynamic, multi-tier system in which states can develop and regulate their own electricity markets.
He noted that this decentralised structure is already proving attractive to investors seeking clarity, competition, and transparency.
“These interventions are already showing results. Under President Bola Ahmed Tinubu’s leadership, the sector has recorded major milestones, including attracting over $2 billion in fresh investments,” Adelabu said.
The Minister explained that the Electricity Act 2023 has opened the door for new funding by liberalising the sector and empowering states to design energy strategies suited to their economic strengths.
He cited Enugu and Lagos as early movers whose subnational markets are already “unlocking new opportunities and shaping development pathways.”
Adelabu pointed out several improvements that have boosted investor confidence, including the first-ever successful synchronisation of the Nigerian grid with the West African Power Pool (WAPP).
The synchronisation, sustained for over four hours, he said, links Nigeria with 14 West African countries, marking a major step toward a fully integrated regional electricity market.
He described the achievement as a “remarkable milestone for West Africa” and a signal to investors that Nigeria is strengthening its grid and expanding its regional energy influence.
The Minister also disclosed a 70 per cent surge in sector revenue in 2024, alongside a N700 billion reduction in government subsidy liabilities, results he attributed to the beginning of the transition to full commercialisation of the electricity market.
Adelabu noted further investment activity through the mobilisation of N700 billion from FAAC to kick-start the Presidential Metering Initiative (PMI), which aims to close Nigeria’s long-standing metering deficit. This effort is being complemented by a $500 million World Bank DISREP fund.
“Procurement of the meters has commenced,” he confirmed, stating that the combined funds would deliver millions of new meters nationwide.
The minister acknowledged ongoing issues such as regulatory overlap between national and state regulators, aging infrastructure, and liquidity constraints.
However, he said the Ministry is addressing these through tighter coordination, technical capacity building, and deeper public-private partnerships.
The Minister urged stakeholders to embrace the ongoing transition and push for bold, innovative solutions to build a decentralised and competitive electricity market.
“Nigeria’s shift to a multi-tier electricity market is not optional; it is necessary,” he stressed. “We must think boldly, challenge assumptions, and work together to deliver a power sector that is inclusive, reliable, and investment-ready.”
