Nigeria's Power Sector Reforms Attract $2bn Investment

The Federal Government of Nigeria, under President Bola Tinubu's Renew Hope Agenda, has reported that reforms in the power sector have successfully attracted $2 billion in investments and reduced liabilities by ₦146 billion. Minister of Power Adebayo Adelabu disclosed these developments during the unveiling of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO) in Abuja.

He described this as a critical milestone that strengthens the financial framework of the sector. The reforms have led to a reduction of inherited liabilities from ₦2.303 trillion to ₦146.76 billion, resulting in ₦700 billion in savings for the federal government.

Adelabu emphasized the importance of the Electric Act 2023, which decentralizes the electricity market and encourages participation from subnational entities. The government aims to achieve a 70% growth in sector revenue by 2024 and is addressing the longstanding meter gap with a commitment of ₦700 billion and an additional $500 million from the World Bank.