Energy sector income surges by N700 billion in 2024, hits file 70% development – Minister Adelabu
The Minister of Energy, Mr. Adebayo Adelabu, has disclosed that the facility sector generated a further N700 billion in income in 2024.
This, he mentioned, represents a 70% year-on-year enhance in comparison with the collections recorded in 2023.
Adelabu made this disclosure throughout the sixth version of the 2025 Ministerial Press Briefing Sequence held on Thursday in Abuja.
“It’s evident that, attributable to our transformative tariff reforms, the electrical energy market generated extra N700 billion income in 2024, reflecting a 70 per cent enhance from what was collected in 2023,” Adelabu mentioned.
He famous additional, “This resulted from the cost-reflective tariff adjustment for Band A prospects. This development in market income is unprecedented, as the very best development beforehand achieved was 20 per cent.”
He famous that this {financial} uptick has additionally helped cut back the federal government’s tariff subsidy burden.
“This positively impacts the discount of the government-subsidised tariff shortfall by 35 per cent, reducing it from N3 trillion to N1.9 trillion,” he added.
In accordance with Adelabu, the efficiency demonstrates that {financial} viability and improved service supply can coexist inside Nigeria’s electrical energy worth chain if acceptable reforms are sustained.
Nigeria’s Vitality Entry Ambitions
The Minister additionally highlighted the Tinubu administration’s continued push for power entry throughout Nigeria and the broader African continent. He referenced Nigeria’s endorsement of the Nigerian Vitality Compact, which was signed in January throughout a summit held in Tanzania.
The Compact is a flagship initiative beneath the management of the World {Bank} and the African Improvement {Bank} (AfDB), geared toward considerably scaling up entry to electrical energy.
“The goal of M300 is to increase power entry to a further 300 million Africans by 2030 out of the 600 million presently missing entry,” Adelabu mentioned.
- He defined that the initiative is anchored on a five-pronged technique geared toward reworking the facility sector.
- In accordance with him, this contains increasing electrical energy technology capability to fulfill rising demand, strengthening the operational and {financial} stability of energy utilities, and creating incentives to draw better personal sector participation.
- Moreover, the minister mentioned, the technique focuses on accelerating the adoption of renewable power sources and selling the combination of regional power markets to foster cross-border collaboration and effectivity.
The Compact additionally goals to advertise clear cooking options and enhance Nigeria’s general power combine, with a powerful emphasis on renewables and sustainability.
Coverage Course and Sector Reform
The Minister famous that, in step with the Electrical energy Act of 2023, the Federal Ministry of Energy has developed the Nationwide Built-in Electrical energy Coverage (NIEP) to supply a long-term roadmap for reform and modernization.
Adelabu famous that the NIEP, which has been submitted to the Federal Government Council for approval, will function a guiding framework for all energy sector actors—together with buyers, operators, regulators, and authorities businesses.
He emphasised that the coverage is constructed on a data-driven and evidence-based method to planning and operations, making certain transparency, accountability, and improved investor confidence.
Extra insights
In January 2025, the African Improvement {Bank} (AfDB) and the World {Bank} Group pledged $40 billion in direction of the Mission 300 initiative.
Mission 300 has an bold aim to supply electrical energy to 300 million Africans by 2030
