Nigeria’s power sector has reached a historic milestone, achieving a peak generation of 6,003 megawatts (MW), the highest ever recorded in the nation’s history. This remarkable feat, achieved on March 2, 2025, surpasses the previous high of 5,713MW recorded just a day earlier. This surge in power generation is attributed to recent tariff hikes, a move that has sparked public outcry yet is lauded by the government as essential for revitalizing the sector. The Ministry of Power credits the increased revenue generated from the tariff adjustments for fostering a more sustainable and investment-friendly environment, attracting much-needed capital for infrastructure development. This positive trajectory also includes a peak generation evacuation of 5,801.84MW and a daily maximum energy output of 128,370.75 megawatt-hours (MWh), further solidifying the sector’s progress.
The Minister of Power, Adebayo Adelabu, champions the tariff review as a pivotal factor in achieving these milestones. The increased tariffs, though unpopular with the public, are deemed necessary to reflect the true cost of power generation and distribution. This, according to the Minister, creates a more realistic pricing structure that encourages private sector participation and facilitates essential investments in infrastructure upgrades. Adelabu asserts that the tariff adjustments are not only justifiable but also crucial for the long-term health and stability of the power sector. He projects that full regularization of tariffs could propel power generation to 7,000MW, marking another significant stride toward a robust and reliable power supply for the nation.
The Ministry of Power emphasizes the concerted efforts undertaken to address longstanding challenges and optimize the nation’s power infrastructure. These efforts include the rehabilitation and upgrading of transmission and distribution networks, the implementation of advanced technologies, and the introduction of policy reforms focused on enhancing efficiency and accountability. The Ministry affirms its commitment to fostering a transparent and sustainable power sector, emphasizing that the tariff review is a critical component of this strategy. The increased revenue generated from these adjustments is expected to facilitate further investment in vital infrastructure and drive the sector towards self-sufficiency.
However, achieving and sustaining these elevated levels of power generation hinges on tackling significant financial hurdles. The government acknowledges the need to address outstanding tariff shortfalls amounting to N1.94 trillion for 2024 and legacy debts of N2 trillion owed to Generating Companies (GENCOs). These substantial debts represent a major obstacle to the sector’s continued growth and stability. Minister Adelabu stresses the importance of sustained tariff reforms, advocating for a system where consumers pay the actual cost of energy consumed. This, he argues, is essential for ensuring the financial viability of the power sector and attracting further investments.
The Ministry of Power expresses confidence in the sustainability of these record-breaking achievements and anticipates further improvements in the coming days. These positive developments are presented as tangible outcomes of the ongoing reforms within the power sector, reflecting the commitment of President Bola Tinubu’s administration to ensuring a regular and reliable electricity supply to bolster the nation’s economy. Minister Adelabu is lauded for his leadership in driving a comprehensive agenda to transform the power sector, fostering collaboration between government agencies, private sector players, and international partners. This collaborative approach is seen as instrumental in creating an enabling environment for growth and innovation within the sector.
While celebrating the historic milestones, the Ministry also acknowledges the ongoing challenges and the continuous work required to consolidate these gains. The government appeals for sustained support and collaboration from all stakeholders, including state governments, private sector participants, and the general public. This collective effort is deemed essential not only for maintaining the current momentum but also for building upon these achievements to create a power sector that effectively serves as a catalyst for Nigeria’s economic growth and development. The Ministry reiterates its commitment to ensuring access to stable and reliable electricity for all Nigerians, emphasizing that the recent achievements are just the first steps towards realizing this ambitious goal.
