The Minister of Power, Adebayo Adelabu, on Tuesday offered a detailed account of his stewardship amid worsening electricity supply across the country, attributing the recent decline largely to gas shortages while assuring Nigerians that improvements should begin within the next two weeks.
Speaking during a briefing in Abuja, Adelabu apologised for the prolonged blackouts experienced nationwide in recent weeks, describing the situation as temporary and largely driven by constraints outside the direct control of the power sector, especially given the current Middle East crisis.
He said the downturn marked a sharp contrast to the noticeable improvements recorded between 2024 and 2025, when many households and businesses enjoyed more stable electricity supply.
According to him, the immediate challenge stems from inadequate gas supply to thermal power plants, which account for about 75 per cent of Nigeria’s electricity generation. He explained that gas producers have been prioritising export markets, where prices are significantly higher, over domestic supply, especially as payment challenges persist within the local power sector.
Adelabu disclosed that many gas suppliers are reluctant to commit volumes to power generation companies due to outstanding debts and poor payment assurance, noting that only a fraction of invoices is currently being settled.
He added that ongoing repairs on key gas pipelines have further constrained supply, worsening the generation shortfall and triggering widespread load shedding by distribution companies.
In explaining the cause of the worsening power supply nationwide, Adelabu said: “The main issue we have today is gas supply shortage to the power plants. Like I mentioned before, 75 per cent of our power plants are using gas, while 25 per cent are using water. If there’s no gas supply, there’s nothing the generation companies can do. Their turbines will just be lying alone without being used.
“To start with, the Middle East crisis has caused a global gas shortage. There’s a lot of pressure on gas exports from Nigeria because gas is locally produced in Nigeria…Today, the power plants are paying the lowest price for local supplies.
“These gas companies have the option of selling it as exports at more than double of what local plants are paying. Beyond that, when they supply to the power plants, they are not getting paid.
“They are only getting a proportion of what the sector pays, which today is about 35 per cent to 40 per cent. So they are being owed. This is even outside the legacy debt of N4 trillion that we are talking about, which has not been defrayed.
“So the gas companies are worried. Number two, if they do the correct supply, will they be able to get their money? No, they are not getting it. And I can tell you, out of the 32 power plants that we have today, only two have firm gas supply contracts with the gas suppliers. Others don’t have firm supply contracts. They only take what they supply them.”
Stressing that the many of the Generation Companies (Gencos) are currently operating on best-endeavour basis with the gas companies, he stated the gas suppliers will have to satisfy their export customers and gas-to-industries customers locally before they sell the remnant to the power plants. “So this is what we are battling with today,” he explained.
According to him, some repairs are also going on on some gas pipelines, with some pipelines only generating just about 30 per cent of their normal capacity, leading to a shortage in gas supply to the power plants.
Despite the current setbacks, the minister maintained that the sector had recorded measurable progress under his watch since 2023. He said reforms across the electricity value chain had helped to boost generation capacity, improve transmission infrastructure, and strengthen regulatory oversight, even though structural challenges remain.
He noted that sector revenue had more than doubled within two years, rising from about N1 trillion in 2023 to N2.3 trillion in 2025, largely driven by tariff adjustments and improved collection efficiency. This, he said, has reduced the federal government’s subsidy burden, although significant liabilities to generation companies and gas suppliers still persist.
On infrastructure, Adelabu stated that transmission capacity has increased significantly, with the national grid now able to wheel up to 8,500 megawatts, compared to about 5,000 megawatts in 2023. He added that ongoing investments under initiatives such as the Presidential Power Initiative (PPI) are expected to further strengthen the grid and reduce system disruptions.
The minister also highlighted improvements in peak generation, noting that Nigeria recorded an all-time high of 6,001 megawatts in April 2025, alongside a record transmission of 5,801 megawatts. However, he acknowledged that these gains have yet to fully translate into consistent electricity supply for end-users, largely due to inefficiencies in the distribution segment.
Adelabu criticised the performance of electricity distribution companies, saying many had failed to meet the technical, financial, and operational expectations set at the time of privatisation. He pointed to persistent metering gaps, high technical and commercial losses, and weak investment in infrastructure as major impediments to improved service delivery.
He warned that only distribution companies that demonstrate measurable performance improvements will have their licences renewed when they expire in 2028, stressing that the government is prepared to enforce stricter standards going forward.
Looking ahead, the minister said the government is intensifying engagement with stakeholders in the gas and power value chains to resolve supply constraints and improve coordination across relevant ministries. He expressed confidence that with ongoing interventions, electricity supply would rebound in the next two weeks and return to the trajectory seen in 2025.
Adelabu reiterated that achieving stable, round-the-clock power supply in Nigeria would require sustained investment, policy consistency, and patience, noting that the transformation of the sector is a gradual process that cannot be completed overnight.
He stated that although some Gencos have been opposed to the N2.8 trillion, which the federal government agreed to pay, at the end of the day the so-called N6 trillion owed may come to about N4 trillion.
“When we said N4 trillion at the end of 2024, it was audited, and it was agreed at 2.8 trillion because of the interest elements and the effects of it. And the number of Gencos that were agreed, some are still discussing back and forth.
“But now that we are talking about N6 trillion for the Gencos, by the time they are done with the reconciliation, probably it will be about N4 trillion total. So, what I can tell you is that the proportion of this, which is not less than 60 per cent, is being owed to the gas suppliers,” he said.
Besides, he explained that about $2 billion investment to date has been attracted by the federal government, across all the segments involved, from generation to transmission to distribution.
He said the sector, which was plagued in 2023 by low available generation of between 3,500 and 4,500 megawatts from an installed capacity of 13,000 megawatts, as well as weak transmission infrastructure and over N4 trillion in debt, has undergone notable transformation driven by policy reforms and targeted investments.
A key milestone, according to him, was the enactment of the Electricity Act 2023, which decentralised the power sector, empowered subnational governments to participate in electricity markets, and opened up the industry to increased private sector investment. He noted that at least 16 states have since moved to establish their own electricity markets under the new framework.
Adelabu disclosed that metering has received renewed focus under programmes such as the Presidential Metering Initiative (PMI) and the World Bank-supported Distribution Sector Recovery Programme (DISREP), with plans to deploy millions of meters nationwide to eliminate estimated billing and improve transparency.
He warned that the federal government would adopt a stricter stance on underperforming distribution companies, stressing that only those that meet new performance benchmarks will have their licences renewed when they expire in 2028.
While acknowledging that significant challenges remain, Adelabu insisted that the sector is on a stronger footing than it was in 2023, adding that ongoing reforms and investments are positioning Nigeria’s power industry for long-term stability and growth.
Emmanuel Addeh
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