₦airaland Forum

N10trn investments in 13 years fail to lift power supply
Blackout in north

***We’re resetting the sector – Power minister

***FG, GenCos disagree over N6.2trn debt

Current updates on the electricity sector development has indicated that about N10 trillion public finance has either been frittered away or trapped in the sector value chain in form of interventions.

But the Minister of Power, Joseph Tegbe said federal government was now resetting the sector by addressing a long-standing structural deficiencies that have prevented the sector from reaching its full potential. He said the deficiencies have been in the sector for over 40 years.

Tegbe listed the measures which starts with a technical audit of the national transmission network, and then harmonising federal and state electricity regulations; grid stabilisation program; sector liquidity and sustainability; a strategic asset centralization; a super grid programme.

He said “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”.

The spending spree

Financial Vanguard’s findings on the 13-year spending spree in the sector showed a sustained stagnation in output and value for money, with power generation hovering at 4,500 megawatts (MW) average over the period, a far cry from targeted 20,000 MW and the 30,000 MW required for the country.

A breakdown of government spending since the November 2013 privatisation showed successive administrations have deployed intervention funds, payment guarantees, debt settlement schemes, multilateral loans and infrastructure financing to address liquidity challenges and improve electricity supply.

The interventions include the Central Bank of Nigeria’s N213 billion Nigerian Electricity Market Stabilisation Facility; the N701 billion Payment Assurance Guarantee for generation companies (GenCos); over N200 billion under the National Mass Metering Programme; N700 billion Presidential Metering Initiative, PMI; and the €2.3 billion Siemens Presidential Power Initiative., demand prepaid meters
Other are the more than $2.4 billion in World Bank and African Development Bank-backed projects, as well as the recently launched N4 trillion Presidential Power Sector Debt Reduction Programme, PPSDRP.

Despite the huge investments, electricity generation has remained largely stagnant, far below the country’s estimated demand of over 30,000MW and only marginally above the level recorded shortly after the sector was privatised.

The latest report by the Nigerian Electricity Regulatory Commission, NERC, showed that in the first quarter of 2026, average available generation capacity from the 28 grid-connected power plants stood at 4,457.96MW, while actual average hourly generation was 4,112.72MW, well below the federal government’s 6,000MW target.

Sector still cash-strapped

While power supply has remained weak, the liquidity crisis in the electricity market has continued to deepen.

The Association of Power Generation Companies, APGC, said debts arising from government’s failure to fully fund electricity subsidies had risen to N6.2 trillion, comprising N4 trillion accumulated between 2015 and 2024 and an additional N2.2 trillion incurred in 2025. FG, however, disputed the figure.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, had said a comprehensive verification exercise reduced verified electricity sector liabilities from about N4 trillion to approximately N3.3 trillion after a line-by-line reconciliation of invoices and services was rendered.

But Executive Director of APGC, Dr Joy Ogaji, insisted that GenCos were not involved in any reconciliation and challenged government to disclose how it arrived at the figure.

“We have asked them to publish how they arrived at the N3.3 trillion. We are owing gas suppliers about N4 trillion. If government owes us only N3.3 trillion, it raises many questions.

“If N3.3 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 queried.

Data from the Nigerian Bulk Electricity Trading, NBET, Plc showed that between April 2025 and April 2026, FG received electricity subsidy invoices worth N1.859 trillion but paid only N76.95 billion, leaving outstanding obligations of about N1.78 trillion.

FG turns to bond market

To tackle mounting debt, FG has turned to the domestic bond market to finance payments to GenCos under the Presidential Power Sector Debt Reduction Programme.

Already, about N333 billion has been paid to electricity generation companies, while a fresh N729 billion bond has been launched to finance additional settlements.

The latest issuance, unveiled at an investors’ forum organised by NBET in Abuja recently, represents the second series under the N4 trillion debt reduction programme and follows the N501.02 billion bond issued earlier this year.

Government officials said the programme was expected to restore liquidity to the Nigerian Electricity Supply Industry, NESI, improve investor confidence and create the financial stability required to attract fresh investments into the sector.

Stakeholders’ view

Commenting on the continued poor performance of the electricity industry, President of the Nigeria Consumer Protection Network, Mr Kunle Olubiyo, argued that the actual subsidy burden might be lower than the figures being claimed by some market participants.

According to him, continued government involvement in the electricity market has encouraged inefficiency and created opportunities for inflated claims and revenue leakages.

“As much as government is desirous of injecting money, there is a value chain of beneficiaries of leakages and wastages.

“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,” he said.

Olubiyo maintained that full privatisation of the electricity industry would compel operators to improve efficiency, automate operations and eliminate many of the leakages that currently inflate electricity tariffs.

“If we completely privatise the sector, some of the inputs on which tariffs have been formulated will shrink because some of these leakages form the basis for determining tariffs. If the cost of generation, transmission and distribution is over-bloated, that becomes the basis for determining what consumers pay,” he said.

He urged the federal government to divest its remaining interests in electricity distribution companies, unbundle and privatise the Transmission Company of Nigeria, TCN, and limit its role to policy formulation and regulation.

Also commenting, President of the Chartered Institute of Power Engineers of Nigeria, CIPEN, Engr. Israel Abraham, blamed the sector’s poor performance on 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,” he said.

We are resetting sector – Tegbe

But speaking to the media weekend, the power minister said the negative story was now changing as the ministry embarks on sector resetting.

He stated: “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”.

He noted what he called, “the extraordinary leadership of President Bola Tinubu in the sector’’, saying since Tinubu assumed office he “has demonstrated perhaps the strongest political commitment to electricity sector reform with the liberalisation of the industry.”

Tegbe stated further: “Under his leadership, the power sector has moved from policy conversations to practical implementation. In addition, his administration has continued the implementation of the Electricity Act, creating an entirely new constitutional and regulatory landscape where states now have the opportunity to develop electricity markets that reflect their peculiar economic realities.”

According to him the administration has embraced electricity sector decentralization as an opportunity to unleash innovation, competition and investment across the federation.

Listing the achievements Tegbe stated: “The administration has also confronted one of the greatest impediments to market sustainability — the crippling liquidity crisis that has accumulated over many years.

He said: “In line with this, the federal government is now advancing the Power Sector Bond initiative to resolve the enormous legacy obligations owed to generation companies, gas suppliers and other market participants.

“This is a strategic intervention designed to restore confidence, unlock fresh investment and return commercial discipline to the Nigerian Electricity Supply Industry.

“Mr. President has equally placed metering at the centre of electricity reform. For decades, estimated billing became one of the greatest sources of distrust between electricity providers and consumers.

“Today, through the Presidential Metering Initiative, Nigeria is moving decisively towards

universal metering because consumers deserve transparency, fairness and confidence that they only pay for the electricity they actually consume.

“This administration has also prioritised investment in transmission infrastructure, expanded rural electrification, strengthened institutional coordination across the electricity value chain, and continued to pursue reforms that encourage private capital while preserving the public interest”.

According to him, “building upon this strong presidential foundation, the Ministry has immediately commenced a number of significant interventions.

“These include inauguration of the Power Force. This initiative brings together 5000 Nigerian youths for meter installation across the country. Our objective is to close the metering gap and also develop a strong skilled pool of young Nigerians in electricity field (NAPTIN).

“Secondly, we have made significant progress in resolving the age-long challenges surrounding meter procurement.

“Thirdly, we are already witnessing encouraging improvements in electricity generation. Over the course of the last two weeks, we have consistently generated 5000MW.

“Although much work remains, enhanced operational coordination, improved plant availability and better engagement across the value chain are beginning to produce measurable improvement.”

Challenges, solutions

Tegbe, however, acknowledged a lot of challenges in the sector amid the achievements, stating

“we are under no illusion. Generation alone does not solve Nigeria’s electricity problem. Electricity must be generated, transmitted, distributed and paid for. All these components must function simultaneously. That understanding forms the basis of our Sector Transformation Agenda.

“Our diagnosis of the Nigerian Electricity Supply Industry is honest. The challenges are not confined to one institution. They exist across generation, transmission, distribution, regulation, governance and market liquidity”.

He said the ministry had articulated a sector-wide plan, in addition to the various initiatives to respond to these challenges.

Listing the plans, Tegbe stated: “Technical Audit of the National Transmission Network – Our first priority is the comprehensive technical audit of the transmission segment of our electricity network. ‘’The audit will identify aging assets, overloaded substations, weak transmission corridors, protection failures, system bottlenecks and operational vulnerabilities.

‘’This exercise will provide the factual basis for prioritising investments, reducing system failures, improving planning and ensuring that every naira invested delivers measurable value.

“Harmonising Federal and State Electricity Regulation. The Electricity Act has created tremendous opportunities but the transition inevitably creates areas requiring clarification.

‘’The ministry shall, therefore, work closely with NERC and State Electricity Regulatory Commissions to resolve jurisdictional disputes, establish regulatory harmony and ensure that decentralisation produces certainty rather than confusion.

“Grid Stabilisation Programme – A stable grid is the foundation of reliable electricity. Consequently, we shall immediately commence strategic investments in three critical transmission corridors: Lagos Corridor; Enugu–Port Harcourt; and Abuja– Kaduna–Kano.

“Sector Liquidity and Sustainability – No electricity market can survive if participants are unable to recover legitimate revenues. Consequently, we shall focus on reducing technical and commercial losses while modernising critical transmission infrastructure.

‘’This intervention complements the Presidential Metering Initiative, which is already addressing collection losses through accelerated deployment of smart meters.

“Strategic Asset Centralisation – We shall also pursue strategic asset centralisation and optimization, linking under-utilised assets with targeted industrial clusters, manufacturing hubs and captive economic corridors.

“Super Grid Programme- The Super Grid Programme represents our medium and long-term strategy for expanding Nigeria’s transmission backbone along critical corridors.

‘’This programme will reinforce the national grid, improve redundancy, enable higher power transfers across regions and create dedicated electricity corridors capable of supporting future industrial growth. In the next few months, we plan to achieve visible improvements in availability.”

https://www.vanguardngr.com/2026/08/n10trn-investments-in-13-years-fail-to-lift-power-supply

They said vote out PDP to get stable electricity and to provide 24 hours is now rocket science. The rudderless APC govts under Buhari and Tinubu really bastardized this nation beyond repair.

Now they are banding criminality after removing electricity and other subsidies that will ease life for the common man. The APC remains a plague Nigeria never deserved.

Nigeria is a very big scam

If e reach ur turn no loot ur own .😒

Power sector revitalization is bedeviled with mammoth and convoluted corruption.

Yeah because to lift power supply Nigeria needs about 15 trillion in investments in the power sector annually

And the reason why we are not getting that is because for the past fifty years government has been setting the price of power below the cost to produce it

The result is that in April for example, discos made 206 billion naira. Revenue collection is 80% of consumers now. And they were expected to receive electricity worth 330 billion naira for distribution.

Most people who will quote me to abuse me somehow expect 206 billion naira to pay for 330 billion naira worth. of electricity . In one month

Right.

Investment means nothing when the government sets prices

And the band A thing that APC and Tinubu boast about, it was tried in India. And India to this day has power cuts. As a result India is expected to remove power subsidy in a few years.


I expect to be abused and to be called an APC supporter and to be told that I am still in my parents house and that I have no work, for telling a simple economic truth, that anything being sold must be sold at a profit.


Prof Nnaji said it last year. Cost reflective tarrifs is the way forward.

With or without corruption

Thank God for solar, generator for show person shege for where fuel don turn Gold

E bi like say they wan telli us another story againooo...

It only lifted APC 's pockets.

Reloadedisraelp:
If e reach ur turn no loot ur own .😒

I pity everyone around you (both family and friends)

Racoon:
They said vote out PDP to get stable electricity and to provide 24 hours is now rocket science. The rudderless APC govts under Buhari and Tinubu really bastardized this nation beyond repair.

Now they are banding criminality after removing electricity and other subsidies that will ease life for the common man. The APC remains a plague Nigeria never deserved.

The fact of the matter is PDP and APC and Peter Obi and sowoere and even Tinubu have all been lying with you

All of them refuse to support cost reflective tarrifs so that our power sector can grow

That is why there was no light under your hero GEJ and no light under their hero Tinubu.

Has nothing to do with who was in power.

PDP and APC practise the same polices. You just don't want to see it because you are not interested in good governance

Until the masses starts to make all the thieves in government responsible and dance soppy

Until the masses starts to make all the thieves in government responsible and dance soppy that's when all of them would switch right

Same story everytime. He just bought himself two to three years.

The next person will come and ati tell you how it’s been bad for 100years, and he will fix it in the next two or three years.

Useless country.

nairalanda1:
Yeah because to lift power supply Nigeria needs about 15 trillion in investments in the power sector annually

And the reason why we are not getting that is because for the past fifty years government has been setting the price of power below the cost to produce it

The result is that in April for example, discos made 206 billion naira. Revenue collection is 80% of consumers now. And they were expected to receive electricity worth 330 billion naira for distribution.

Most people who will quote me to abuse me somehow expect 206 billion naira to pay for 330 billion naira worth. of electricity . In one month

Right.

Investment means nothing when the government sets prices

And the band A thing that APC and Tinubu boast about, it was tried in India. And India to this day has power cuts. As a result India is expected to remove power subsidy in a few years.


I expect to be abused and to be called an APC supporter and to be told that I am still in my parents house and that I have no work, for telling a simple economic truth, that anything being sold must be sold at a profit.


Prof Nnaji said it last year. Cost reflective tarrifs is the way forward.

With or without corruption

The only thing I will tell you is that you should keep defending the govt. Your own portion of Nigeria go happen to you for front.

Most of it, ended up in private pockets.

israelmao:
Power sector revitalization is bedeviled with mammoth and convoluted corruption.

Because when you allow government set prices for products of the power sector that is what you get.

When Poland and Russia had communist government, prices of food were set by government. Result was periodic food scarcity, lack of some food stuff on the shelves at certain periods and so forth

And a lot of the subsidised food was sold on the black market for high prices. Farmers hid food and sold it on the black market because they were not making a living form selling food at government set prices

Then communism fell, price controls went and after some hardship, food suddenly appeared

Today in Moscow and Warsaw you can get all kinds of food all year round.

Ivory Coast used to do price controls for power. Then they deregulated in the early 1990s. Prices went up. People complained

Today the Ivoriennes who recall the last time there was power grid collapse in their country are over 40 years old.

Set a cost reflective tarrif. ,watch corruption end and growth happen

Tinubu always setting negative records

LeeSmart:
The only thing I will tell you is that you should keep defending the govt. Your own portion of Nigeria go happen to you for front.

So apparently saying that things must be sold at a profit means I am defending the government.

Hand back your certificate to the school you went to, son.

In brief you can type this nansense you wrote because Obasanjo allowed gsm.companies to sell Internet and telephone services at a profit. That meant that investment flowed into the sector and led to improvements all around.

I'm voting for Obi by the way, because I despise apc and because we need to see what the opposition can do

Money way dey already receive fresh air for bull hari and THIEFNIBU account

In a nutshell, APC has spent over N10 trillion in 13 years to generate electricity. Their target output is 20,000 megawatts, but the output today is still below 4,500 megawatts.

Mindlog:
Most of it, ended up in private pockets.

Nope, it went to where it was meant to go

The problem is, it was never enough.

We need 15 trillion naira annually for ten years to get power fixed. Ten trillion over 13 years is like less than a trillion a year which won't pay the gas bill for the gencos for a year.

The money is scanty.

Keep in mind that we are transmitting 6000 mw on a good day. For everyone on the grid to get 24 hour light a day we need 32000 mw. For the whole country to get light <\, we need 88000 mw

bigiyaro:
It only lifted APC 's pockets.

I hope yarimo will partake in sharing of the money since he's the APC official

nairalanda1:
The fact of the matter is PDP and APC and Peter Obi and sowoere and even Tinubu have all been lying with you

All of them refuse to support cost reflective tarrifs so that our power sector can grow

That is why there was no light under your hero GEJ and no light under their hero Tinubu.

Has nothing to do with who was in power.

PDP and APC practise the same polices. You just don't want to see it because you are not interested in good governance

The truth is... It will take a revolution of minds and cohesion of citizens to have cost reflective pricing, not just in the Power sector, but every sector in Nigeria.

Which current politician among the crop in all the parties has the balls to do this?!! Not a single one.

This might happen if we had an incorruptible dictatorship or military leadership that has a great grasp of progressive economic management.

If (or when) Tinubu wins a second term, then he might sack up, and get it done regardless of the national outcry.


The first step will be to build trust by showing transparency... The subsidy removal in the Petroleum sector is still shrouded in half-truths, over 3 years after.

The comment below is a strong case in point

3kay945:
I am on Band A, so i am currently paying higher tariff. I understand your position but my concern is the figure you quoted, even if it is an example, the fact still remain that I find it difficult to believe figures stated by these corrupt people.

They don't have heart or conscience. All they are after is to continue looting and making the poor masses poorer.

How many household can afford Band A.?

Right now the portal to obtain Prepaid Meter is closed, people are begging the authorities involved to open it so as to prevent the unreasonable bills.

nairalanda1:
Yeah because to lift power supply Nigeria needs about 15 trillion in investments in the power sector annually

And the reason why we are not getting that is because for the past fifty years government has been setting the price of power below the cost to produce it

The result is that in April for example, discos made 206 billion naira. Revenue collection is 80% of consumers now. And they were expected to receive electricity worth 330 billion naira for distribution.

Most people who will quote me to abuse me somehow expect 206 billion naira to pay for 330 billion naira worth. of electricity . In one month

Right.

Investment means nothing when the government sets prices

And the band A thing that APC and Tinubu boast about, it was tried in India. And India to this day has power cuts. As a result India is expected to remove power subsidy in a few years.


I expect to be abused and to be called an APC supporter and to be told that I am still in my parents house and that I have no work, for telling a simple economic truth, that anything being sold must be sold at a profit.


Prof Nnaji said it last year. Cost reflective tarrifs is the way forward.

With or without corruption

At least you displayed some level of theoritical knowledge of power sector operations, however, in your calculations, lower collection efficiency is not a measure of losses because the money is simply recorded as debt even when the billing is terribly flawed with irregularities.....Do you know the government approved Technical losses percentage? Do the discos truly apply that during billing?.....Do you know that low investment in the distribution level is the major reasons they are avoiding metering Nigerian masses especially the lowest consuming residential customers who bear the consequences of the losses they never consumed.........

Some details I would have loved to share here are confidential and should remain so but the so called Band A and so forth na fraud introduced by Indians who have till today not profered solutions to their own power problems

And this is Nigeria that's the number one scam,
Two fingers up in the air if you know you understand that.

-Yung Hanz 'The Industry'

nairalanda1:
Yeah because to lift power supply Nigeria needs about 15 trillion in investments in the power sector annually

And the reason why we are not getting that is because for the past fifty years government has been setting the price of power below the cost to produce it

The result is that in April for example, discos made 206 billion naira. Revenue collection is 80% of consumers now. And they were expected to receive electricity worth 330 billion naira for distribution.

Most people who will quote me to abuse me somehow expect 206 billion naira to pay for 330 billion naira worth. of electricity . In one month

Right.

Investment means nothing when the government sets prices

And the band A thing that APC and Tinubu boast about, it was tried in India. And India to this day has power cuts. As a result India is expected to remove power subsidy in a few years.


I expect to be abused and to be called an APC supporter and to be told that I am still in my parents house and that I have no work, for telling a simple economic truth, that anything being sold must be sold at a profit.


Prof Nnaji said it last year. Cost reflective tarrifs is the way forward.

With or without corruption

I am on Band A, so i am currently paying higher tariff. I understand your position but my concern is the figure you quoted, even if it is an example, the fact still remain that I find it difficult to believe figures stated by these corrupt people.

They don't have heart or conscience. All they are after is to continue looting and making the poor masses poorer.

How many household can afford Band A.?

Right now the portal to obtain Prepaid Meter is closed, people are begging the authorities involved to open it so as to prevent the unreasonable bills.

Many good promises made about meter being free or so have never materialise. All we hear is excuses upon excuse.

Privatize the sector, it’s the only solution, decentralize it

Angelfrost:
The truth is... It will take a revolution of minds and cohesion of citizens to have cost reflective pricing, not just in the Power sector, but every sector in Nigeria.

Which current politician among the crop in all the parties has the balls to do this?!! Not a single one.

This might happen if we had an incorruptible dictatorship or military leadership that has a great grasp of progressive economic management.

You do not need revolution to pass a law that deregulates the power sector properly.

PDP was corrupt, Nigeria in 2001 was corrupt, but the same PDP it deregulated the GSM sector. We paid cost reflective tarrifs for the phone services from the word go...and went from phones are for the rich to farmers and even poor villagers pressing phone.

Ivory coast, at the time they implemented cost reflective tarrifs for their power sector, was run by a guy called Bedie, who was a tribalist, and very corrupt (he was removed by coup for corruption charges). Yet, he deregulated the power sector, and as a result investment flowed in, even from the world bank. The result is that today the Ivoriens who recall GRID collapse in their country are above 40 years old. (A 40 year old Ivorien knows of grid collapse only from the tales his parents told him).

At some point, we should stop behaving like the woman who is waiting for a tall handsome man to sweep her off her feet, and impelemet cost reflective tarrifs. Fact is, we need trillions of naira in annual investments, and no sane investor is going to come and invest money in a sector where most of the consumers are not paying cost reflective tarrifs. Mba. And government has been a failure at doing it, yes, but even if we got a serious government, it would have to take massive loans to pay for fixing power, which have to be paid back. And which would worsen our debt.


We deregulated GSM, people shouted evil and poverty, and oprpession and corruption and looting. Obasanjo did as if he no hear. Guess what, when was the last time government poured in billions of naira to build phone services in this country? All the phone services we enjoy was built with private investor money.

10 trillion over 13 years is not going to fix power in nigeria. That is eight 100 billion naira annually. Gas bills for the gencos are far above that.

So, either we wait for the revolutuon to happen, or we face reality and let the free market do its thing.

Speaking of revolution, the USSR Had a revolution and for over 70 years lots of people were uplifted out of poverty and giving light and water by the power of state spending, which in the last twenty years or more was powered by loans from the world bank. Yes nothing in the world is free of charge.

Cost reflective tarrifs, or loans or we forget about light and just accept the bad light we have.

I typed “May God have mercy on your souls” but then a thought came to my mind what if these Nigerian politicians are the spawn of satan sent to torment ordinary Nigerians.

And those defending them are just agents from hell.

Because we are all in the pain, suffering, poverty, lack, hardship, killing, looting, stealing, destruction together yet they keep telling us “it’s ok” “it’s normal” you mean to you this suffering is normal?

You must be an agent of hell. If you think such pain and suffering is normal. And even go as far as to you risk your reputation defending it.

I disagree with this post. Power supply has been improved . There have been increase in the units of individuals that is citizens generating there power themselves . These huge sums of money spent have landed in the pockets of many citizens thereby making them afford to buid solar farms that suppliess solar lights and .almost every home in Nigeria today can AFFORd solar lights and the governments (FG,SG,LG) sometimes at interval subsidies power generation for industries and major highways are often powered with strret lights . Likewise in the area of distributive energy. Individuals , gencos can now sell some of their power to energy Companies and Those that can afford it making Nigeria a country that is how boastful of a 24 hour or 247 power in a day .
HENCE most of the monies spent are working capital which are still in the Nigerian economy and do not forget the power sector is not the only sector in Nigeria. The people should not downplay their minor and major contributions .