Nigeria’s power sector generated N700 billion more in the year 2024, marking a 70 per cent increase from the previous year’s revenue.
Minister of Power, Mr Adebayo Adelabu, announced the development during the 6th edition of the 2025 Ministerial Press Briefing Series held in Abuja on Thursday.
He said the rise in revenue was a direct result of the cost-reflective tariff adjustment for Band A customers, which pushed total revenue to N1.7 trillion in 2024 compared to N1 trillion in 2023.
“This growth in market revenue is unprecedented, as the highest growth previously achieved was 20 per cent,” Adelabu stated.
He noted that the improved revenue helped to reduce the government’s tariff shortfall burden by 35 per cent, bringing it down from N3 trillion to N1.9 trillion.
Adelabu stressed that the increase reflects the possibility of balancing financial viability with improved service delivery in the electricity sector.
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Highlighting the current administration’s commitment to expanding energy access, he said Nigeria signed the Nigerian Energy Compact in Tanzania in January.
The compact, led by the World Bank and the African Development Bank, aims to improve energy access for 300 million Africans by 2030.
The initiative will focus on expanding generation, strengthening utility services, incentivising private sector investment, accelerating the adoption of renewable energy, and promoting regional integration.
Adelabu said the compact also targets increased electricity access, clean cooking solutions, and greater renewable energy usage for millions of Nigerians.
On policy development, the minister disclosed that the Federal Ministry of Power has completed the National Integrated Electricity Policy,NIEP, in line with the Electricity Act 2023.
The NIEP, already presented to the President and submitted for Federal Executive Council approval, outlines a strategic framework for delivering a sustainable and cost-effective power sector.
He explained that the policy will guide investors, regulators, operators, and government institutions using data-driven, evidence-based strategies to transform the nation’s power landscape.
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