The Minister of Power, Chief Adebayo Adelabu, attributed Nigeria’s ongoing electricity challenges to the ‘actions and inactions’ of previous administrations, but expressed optimism that the Bola Tinubu administration is poised to revamp the sector through comprehensive reforms.
During a visit by the Civil-Military Cooperation (CIMICO) organization to his office in Abuja, Adelabu highlighted that the current administration’s efforts have already led to a 27% increase in electricity supply to Nigerians.
CIMICO consists of various NGOs, security personnel, and government agencies, including the Department of State Service (DSS), Nigeria Security and Civil Defence Corps (NSCDC), National Orientation Agency (NOA), and the fire service.
Adelabu emphasized his commitment to expanding energy assets to alleviate energy poverty across urban, semi-urban, and rural communities in Nigeria. He acknowledged that it is easier to build new infrastructure than to repair old ones and criticized the lack of proper action in the power sector over the past 60 years. He noted, “A nation of 220 million people should not be struggling with 5,000 megawatts of power. It is shameful. South Korea, with a population of 49 million, has 130,000 megawatts of power, which has driven their industrial growth.”
The minister stressed the importance of getting the power sector right to enable the development of other critical sectors. He mentioned that President Bola Tinubu recently signed the Electricity Act into law, which addresses the over-centralization of power supply and allows sub-national governments to participate in all segments of the power sector, from generation to distribution.
“The government will play its role in de-risking the sector while attracting foreign and local investment. With the decentralization of the sector, states are now receiving regulatory autonomy, which we believe will further drive development,” he stated.
Adelabu pointed out that significant investments are flowing into the sector, which is not by accident but due to deliberate efforts to improve generation, transmission, and distribution infrastructure. He mentioned that the National Integrated Electricity Policy and Strategic Implementation Plan is being developed to guide the country’s progress in the power sector.
On electricity pricing, the minister stated that Nigeria cannot continue to subsidize power supply. “I’m entitled to a subsidy. But does the government have enough to fund the promised subsidy? No! So all the promised subsidies have been piled up in the form of debts to the power generating companies, stifling the industry. We need to start migrating to a cost-reflective tariff.”
He explained that this transition would not be immediate but must begin, highlighting that 15% of electricity consumers have been moved to a full cost-reflective tariff, particularly those with commercial infrastructure capable of supplying electricity for over 20 hours. He argued that this would ultimately be cheaper than relying on diesel and petrol generators.
Adelabu noted that the settlement of energy bills has improved from about 9% to approximately 40%, with a target of 70% to 75%. He expressed confidence that getting the commercial aspects right would attract more investments into the sector. He also acknowledged the need to address outdated infrastructure, some of which are older than the personnel maintaining them.
He added that Nigeria reached a peak of 5,155 megawatts of power on August 9, the highest in three years, up from around 4,000 megawatts when the current administration took office. This represents a 27% increase in just a year.
He stressed the importance of consumers paying for electricity and discouraging power theft as crucial for sustaining the sector.
In his remarks, the leader of the CIMICO team, Mr. Adams Otakwu, emphasized the significance of the energy sector for national security. He noted, “If the power sector doesn’t function optimally, our economy cannot run at full throttle, leading to economic sabotage and posing significant threats to national security. Without power, there are no jobs, which brings national security threats.”
