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ARTICLE · 04 AUGUST 2025

2025 Power Sector Mid-Year Report

Tope Adebayo LP
Tope Adebayo LP
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The year 2024 marked a pivotal moment for Nigeria's Power Sector. The Sector witnessed sweeping reforms aimed at repositioning it for growth and sustainability.

NigeriaEnergy and Natural Resources
Aderemi Ogunbanjo
Aderemi Ogunbanjo
Sandra Osinachi-Nwandem
Sandra Osinachi-Nwandem
Olawunmi Abiola
Olawunmi Abiola
Eyitayo Ajisafe
Eyitayo Ajisafe
Omowonuola Oluwayinka
Omowonuola Oluwayinka
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INTRODUCTION

>The year 2024 marked a pivotal moment for Nigeria's Power Sector. The Sector witnessed sweeping reforms aimed at repositioning it for growth and sustainability. Notably, eight Sates took decisive steps toward decentralised electricity regulation, exercising their authority under the Electricity Act to transition to State-level oversight. In parallel, the Federal Government eliminated subsidies on Band A electricity tariffs, a move designed to attract investment and strengthen commercial viability across the value chain.

The Minister of Power, Adedayo Adelabu, reported that tariff adjustments alone generated an additional N700 million in revenue for the Sector and drove a record 70% year-on-year increase in collections compared to 2023. Yet, beneath these gains lie deeply rooted structural challenges that continue to undermine the Sector's performance, ranging from rising debt burdens and infrastructure deficits to widespread vandalism, right of way

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