Minister: Power sector generated N1.7trn revenue in two years

The Minister of Power, Adebayo Adelabu, has disclosed that the sector generated N1.7 trillion revenue between 2023 and 2024.

The minister said the power sector generated additional N700 billion revenue in 2024, reflecting a 70 per cent increase from what was generated in 2023.

Adelabu disclosed this at the 6th Edition of the 2025 Ministerial Press Briefing Series in Abuja on Thursday, April 17, 2025.

He said: “It is evident that, due to our transformative tariff reforms, the electricity market generated additional N700 billion revenue in 2024, reflecting a 70 per cent increase as N1.7 trillion was generated in 2024, while N1 trillion was generated in 2023.

“This resulted from the cost-reflective tariff adjustment for Band A customers. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20 per cent.

“This positively impacts the reduction of the government-subsidised tariff shortfall by 35 per cent, decreasing it from N3 trillion to N1.9 trillion.”

Adelabu stated that the growth in revenue demonstrates that financial viability and service delivery can coexist harmoniously.

Adelabu added that the commitment of President Bola Tinubu’s administration to energy access was further demonstrated when it signed the Nigerian Energy Compact in Tanzania in January.

The minister said the initiative which is led by the World Bank and the African Development Bank  (AFDB) aligns with the administration’s aspiration to expand energy generation.

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Adelabu said: “The target of M300 is to extend energy access to an additional 300 million Africans by 2030 out of the 600 million currently lacking access.

“This initiative will be realised based on a five-pillar strategy – expanding generation, strengthening utilities, incentivising private investment, accelerating renewables, and boosting regional integration.

“The compact sets ambitious goals to enhance electricity access, increase renewable energy adoption, and improve clean cooking solutions for millions of Nigerians.”

Adelabu further stated that in fulfilment of the statutory mandate of the Electricity Act 2023, the Federal Government, through the Federal Ministry of Power, developed the National Integrated Electricity Policy (NIEP).

The minister said the transformative framework in NIEP would set a clear roadmap for delivering a resilient, cost-effective, and sustainable power sector.

He noted that the NIEP, which was presented to Tinubu, had been submitted for approval by the Federal Executive Council.

“This policy guides all power sector actors, including investors, operators, regulators, and the supervising ministry, to transform the country’s power sector through a data-driven and evidence-based approach,” the minister added.

The Star