Nigeria’s Power Sector Records 70% Revenue Jump To ₦1.7 Trillion In First 100 Days Of 2025

Nigeria’s power sector has recorded a significant leap in revenue generation, with an additional ₦700 billion realised within the first 100 days of 2025—marking a 70% year-on-year increase.
This was disclosed by the Minister of Power, Adebayo Adelabu, during a ministerial press briefing held on Thursday in Abuja. He highlighted key achievements of the ministry under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
The Minister attributed the milestone growth to recent cost-reflective tariff reforms targeting Band A customers, which raised total market revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024.
“This growth is unprecedented,” he said. “It is the first time we’re witnessing such a sharp increase, far above the previous record of 20%. More importantly, this has led to a 35% reduction in government-subsidised tariff shortfalls—from ₦3 trillion to ₦1.9 trillion. It demonstrates that financial viability and service delivery can coexist harmoniously.”
Speaking on broader sector reforms, Adelabu highlighted the development of two key frameworks—the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP)—as pivotal steps in redefining Nigeria’s energy future.
He stated that both frameworks are designed to build a cost-effective and sustainable electricity ecosystem and have already been submitted to the Federal Executive Council for approval.
Other notable achievements within the 100-day period include the inauguration of the National Independent System Operator (NISO), which unbundles the Transmission Company of Nigeria as mandated by the Electricity Act of 2023. The new entity will independently oversee grid operations, aimed at improving efficiency and market transparency.
The sector also reached a historic milestone generation capacity of 6,003MW, with an average daily generation of 5,700MW in early 2025—up from 4,100MW in Q3 2023, representing a 40% increase.
“What took four decades to achieve—an additional 2,000MW—we’ve delivered in under two years,” the Minister stated.
Further gains were recorded in transmission stability.
“Despite persistent grid disturbances last year, we have not recorded a major grid collapse in Q1 2025,” Adelabu noted, citing newly completed transformer installations and mobile substations across more than 12 states.
The Ministry also highlighted progress in renewable energy and rural electrification, including off-grid and mini-grid projects across Plateau, Niger, Cross River, Osun, and Oyo States, which are providing clean electricity to thousands of households.
In addition, efforts are ongoing to evacuate full capacity from key hydropower stations like Zungeru and Kashimbila, while the Kaduna Thermal Plant is being restored after six years of dormancy.
Adelabu reaffirmed the government’s commitment to partnering with the private sector, revealing that proposals from Sun Africa Energy and Skipper Electric to scale up solar power generation and grid expansion are currently under review.
“Our vision is bold but achievable—a Nigeria where power no longer hampers progress, but powers it,” he said.
The Minister also assured power generation companies (GenCos) that the Federal Government will pay at least ₦2 trillion of the ₦4 trillion debt owed them before the end of 2025, in an effort to avert disruptions to electricity supply.
His statement comes amid threats by GenCos to declare force majeure over unpaid debts.
While acknowledging the financial burden, Adelabu explained that the government may not be able to clear the entire debt immediately but is committed to offsetting half the amount by year’s end.
He said the payments would be made through a combination of cash disbursements and promissory notes, the latter of which can be discounted by banks to provide GenCos with immediate liquidity.
“We’re not promising 100% payment, but we’re working to settle close to ₦2 trillion of the debt this year,” Adelabu stated. “There are already budgetary provisions for cash disbursement, and we’re also discussing the issuance of guaranteed debt instruments—such as promissory notes—that the GenCos can present to banks for quick financing.”
He clarified that the debt comprises unpaid subsidies, with nearly half inherited from previous administrations and the remainder accruing from ongoing operations in 2024.
“This issue has been a serious concern,” he said. “I’ve held tough discussions with the Minister of Finance and the Coordinating Minister for the Economy, who confirmed that work is underway to finalise the promissory notes. Once budget releases are made, cash payments will follow.”
Adelabu also acknowledged broader challenges facing the sector, including the ₦4 trillion debt burden, vandalism of infrastructure, and insufficient investment. Despite these hurdles, he reaffirmed the Tinubu administration’s resolve to settle inherited liabilities and restore investor confidence.
“The administration is determined to turn things around. Clearing these debts is a critical step toward stabilising the sector and attracting the investment it so urgently needs,” he concluded.
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