Precious Anga
Lagos — Despite an estimated ₦10 trillion committed to Nigeria’s electricity sector through intervention funds, infrastructure financing, debt settlement schemes and multilateral-backed projects over the past 13 years, electricity supply has remained largely stagnant, with generation continuing to fall far short of the country’s growing demand.
An assessment of government interventions since the privatisation of the power sector in November 2013 showed successive administrations have introduced several funding initiatives to address liquidity constraints, improve metering, strengthen transmission infrastructure and boost electricity generation. However, the massive investment has yet to deliver a significant improvement in power supply, with average generation still hovering around 4,500 megawatts (MW), compared to the country’s estimated demand of more than 30,000MW.
The interventions include the Central Bank of Nigeria’s ₦213 billion Nigerian Electricity Market Stabilisation Facility, the ₦701 billion Payment Assurance Guarantee for generation companies, GenCos, over ₦200 billion under the National Mass Metering Programme, the ₦700 billion Presidential Metering Initiative, PMI, the €2.3 billion Siemens Presidential Power Initiative, more than $2.4 billion in World Bank and African Development Bank-backed projects, as well as the recently launched ₦4 trillion Presidential Power Sector Debt Reduction Programme, PPSDRP,.
The latest report by the Nigerian Electricity Regulatory Commission, NERC, showed that in the first quarter of 2026, average available generation capacity from the country’s 28 grid-connected power plants stood at 4,457.96MW, while actual average hourly generation averaged 4,112.72MW, well below the Federal Government’s 6,000MW target.
The sector’s financial challenges have also continued to deepen. The Association of Power Generation Companies, APGC, said unpaid electricity subsidies owed by the Federal Government had risen to ₦6.2 trillion, comprising ₦4 trillion accumulated between 2015 and 2024 and another ₦2.2 trillion incurred in 2025. The Federal Government, however, maintained that verified liabilities stood at about ₦3.3 trillion following a reconciliation of invoices and services rendered.
Rejecting the government’s position, APGC Executive Director, Dr Joy Ogaji, said generation companies were not involved in the reconciliation process.
“We have asked them to publish how they arrived at the ₦3.3 trillion. We are owing gas suppliers about ₦4 trillion. If government owes us only ₦3.3 trillion, it raises many questions. If ₦3.3 trillion is not even enough to pay the gas suppliers, how will GenCos cover operating costs, including operations and maintenance as well as staff costs?” she said.
Figures from the Nigerian Bulk Electricity Trading, NBET, Plc showed that between April 2025 and April 2026, the Federal Government received electricity subsidy invoices worth ₦1.859 trillion but paid only ₦76.95 billion, leaving an outstanding balance of about ₦1.78 trillion.
To ease the liquidity crisis, the Federal Government has turned to the domestic bond market through the Presidential Power Sector Debt Reduction Programme. About ₦333 billion has already been paid to GenCos, while a fresh ₦729 billion bond has been launched to finance additional settlements and restore liquidity across the Nigerian Electricity Supply Industry, NESI,.
Amid growing concerns over the sector’s performance, Minister of Power Joseph Tegbe said the Federal Government had begun implementing wide-ranging reforms aimed at tackling the structural deficiencies that have constrained the industry for decades.
“Our objective is clear. To make electricity more available, make the grid more reliable, make the market financially sustainable and restore investor confidence. Ultimately, we want to ensure that electricity becomes a catalyst for national productivity rather than a constraint to economic growth,” Tegbe said.
According to the minister, the government’s reform agenda includes a technical audit of the national transmission network, harmonisation of federal and state electricity regulations, strategic investments in critical transmission corridors, expansion of the Presidential Metering Initiative, improved sector liquidity, optimisation of electricity assets and the implementation of a national Super Grid Programme.
Tegbe also disclosed that the ministry had inaugurated the Power Force initiative to engage 5,000 young Nigerians in electricity meter installation across the country while building technical capacity for the industry.
“Within the next two to three years, Nigerians should experience a stronger grid, reduced technical losses, improved market discipline, greater investor confidence, expanded electricity access and significantly higher operational capacity,” he said.
Industry stakeholders, however, argued that funding alone would not solve the electricity sector’s long-standing problems. President of the Nigeria Consumer Protection Network, Kunle Olubiyo, said continued government participation in the electricity market had encouraged inefficiency and revenue leakages.
“Because government bears the burden, a lot of claims thrown into the electricity pool are virtually non-existent or have been orchestrated to create a desired end,” Olubiyo said.
President of the Chartered Institute of Power Engineers of Nigeria, CIPEN, Engr Israel Abraham, also attributed the sector’s poor performance to the appointment of non-technical professionals to manage critical institutions.
“The electricity industry is highly technical. Progress has stalled because the right people have not been allowed to manage the sector. Until competent professionals are put in charge, the industry will continue to struggle,” Abraham said.
The latest figures highlight the disconnect between years of heavy public spending and the sector’s operational performance. Although the Federal Government says ongoing reforms, debt resolution and infrastructure investments will strengthen electricity supply over the coming years, analysts believe sustained improvements will depend on stronger governance, financial discipline, efficient project execution and reforms that address challenges across the entire electricity value chain.This version keeps the headline, integrates the key quotes naturally, and ends with an analytical conclusion instead of a quotation.
