The Federal Government has reaffirmed its commitment to setting Nigeria’s power sector on the path of long-term sustainability and bankability, as it seeks to unlock economic growth through energy sector reforms.
Speaking at the Mission 300 Stakeholders Engagement Meeting in Abuja on Tuesday, Minister of Power, Chief Adebayo Adelabu, highlighted the estimated $32.8 billion investment needed to deliver the Mission 300 Compact — a continent-wide initiative to provide electricity access to 300 million unserved people in Africa. Of the total funding requirement, $15.5 billion is expected to come from the private sector.
Chief Adelabu stressed that achieving this ambition will require innovative financing, strong partnerships, and a shared commitment among stakeholders. He called on development partners, the private sector, civil society, and philanthropic institutions to join hands in transforming policy objectives into real impact for Nigerians.
“Let us take this opportunity to ask hard questions, identify practical solutions, and develop actionable plans that will make universal access a reality… by powering our hospitals, our schools, our industries, and our homes,” the minister urged.
As part of the government’s power sector priorities, Adelabu announced a shift toward a fully cost-reflective tariff regime, while assuring that targeted subsidies will be introduced to protect economically vulnerable Nigerians from the burden of higher tariffs.
The minister identified key reforms currently underway, including:
• Resolving market liquidity issues, with over ₦4 trillion in unpaid government subsidies owed to power generation companies as of December 2024;
• Improving power generation capacity, including recovery of idle generation assets and diversification of the energy mix with cheaper, cleaner energy sources;
• Expanding and stabilising the national transmission infrastructure, to reduce frequent grid disturbances and collapses;
• Enhancing the performance of the distribution segment, through initiatives like the Presidential Metering Initiative and the World Bank-funded Distribution Sector Recovery Programme;
• Promoting renewable energy expansion through rural electrification and energy transition programmes, particularly for underserved communities.
Chief Adelabu also expressed appreciation to international partners including the World Bank, African Development Bank (AfDB), Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All (SEforALL) for their support in the Mission 300 initiative. He praised the collaborative effort aimed at ensuring electricity access across Africa by 2030, stating it reflects “a shared belief that energy access is a fundamental issue that must be urgently addressed to unlock the continent’s economic potential.”
Also speaking virtually from Brazil, Minister of Finance, Chief Wale Edun, emphasized that the ongoing power sector reforms are essential for job creation and unlocking Nigeria’s full economic potential.
The stakeholders’ meeting was described as a strategic forum to align visions, forge partnerships, and transform Nigeria’s Energy Compact into actionable results.
