Minister of Power, Adebayo Adelabu, has disclosed that the power sector achieved a 70 percent year-on-year revenue growth in 2024, hitting N1.7 trillion by the end of the year.
He made this known at the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.
According to the minister, the sector’s revenue rose from N1.05 trillion in 2023 to over N1.7 trillion in 2024, marking a notable achievement in the commercialisation of electricity distribution in the country.
Adelabu attributed the revenue growth to the introduction of a Band A tariff and other electricity reforms, adding that there had been no significant backlash months after the adjustment.
He said the positive impact of these changes indicates that the sector’s trajectory is on the path to long-term sustainability.
“We recorded growth in sector revenue from N1.05tn in 2023 to over N1.7tn in 2024. That’s 70 per cent just by commercialising a tiny portion, 15 per cent of consumers,” the minister said.
“This means that things can only get better as we continue to implement more cost-effective planning regimes in the sector.”
The minister, while noting challenges in the sector, particularly the metering gap issue, confirmed that over six million customers, representing roughly 50 per cent of consumers, are still not metered.
Adelabu pointed out that the lack of metering is a significant obstacle to implementing a cost-reflective tariff and fully commercialising the sector.
“Without meters, we are still relying on estimated billing, and customers cannot effectively manage their consumption. This remains a major issue for the sector,” he stated.
The minister also criticised the Discos for focusing on short-term profits at the expense of long-term investments, pointing out that their reluctance to invest in necessary infrastructure and inability to attract financing due to weak balance sheets have hindered progress.
“As presently constituted, are the Discos ready to take us to the promised land? They are just milking for immediate gains. They are not prepared to make the huge investments needed for future growth,” he said. “This year, we are focusing on restructuring the Discos. We are going to carry out major reforms, addressing their poor investment strategies,” he stated.
The minister proposed mandating the Discos to franchise underperforming feeders, an initiative that has yet to be attempted and also suggested the introduction of minimum capital requirements, similar to what is done in the banking sector, with specific timelines for capital injection.
He emphasised the need for a cost-reflective tariff and a more robust regulatory framework to make the sector more appealing to investors.
