Precious Anga
Lagos — The Federal Government has unveiled an ambitious roadmap to transform Nigeria’s electricity sector, setting a target of 277 gigawatts (GW) of installed power generation capacity by 2060 while projecting $121 billion in fuel savings through a shift to cleaner energy sources.
Minister of Power, Joseph Tegbe, announced the plan at the Lagos Chamber of Commerce and Industry (LCCI) Renewable Energy Outlook Conference 2026, describing the country’s Energy Transition Plan as a blueprint for industrial growth, energy security and economic competitiveness. He said the strategy will rely on renewable energy, natural gas and sustained private sector investment to reduce Nigeria’s dependence on petrol and diesel generators.
Tegbe said Nigeria currently has more than 13,000 megawatts (MW) of installed generation capacity, yet less than half of that is consistently delivered to consumers, leaving households and businesses heavily dependent on self-generation. He noted that unreliable electricity has continued to increase production costs, weaken industrial productivity and slow economic expansion.
To reverse the trend, the minister said reforms introduced under the Electricity Act 2023 are opening up the sector to greater investment by decentralising electricity regulation. According to him, about 20 states have enacted electricity laws, while 12 others are already processing the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC) to establish independent electricity markets.
He added that the Federal Government has continued to strengthen transmission infrastructure through the installation of new transformers and the completion of critical projects that have expanded grid capacity. Tegbe also disclosed that a $1.16 billion grid digitalisation programme is close to completion and will modernise electricity transmission by improving efficiency, reliability and system management.
According to the minister, achieving the country’s energy transition goals will require an additional $10 billion in investment every year, but the long-term economic gains far outweigh the cost. He said reducing dependence on fossil fuels in electricity generation could save Nigeria an estimated $121 billion in fuel expenses while providing more reliable and affordable electricity for industries, businesses and households.
Tegbe stressed that the government’s objective extends beyond expanding generation capacity, saying reliable electricity is critical to attracting investment, boosting manufacturing, creating jobs and reducing energy poverty. He added that with stronger state participation, improved infrastructure and increased private investment, Nigeria is positioning its power sector to support long-term economic growth while advancing its clean energy ambitions.
