Electricity: Nigeria set to launch subsidy to protect vulnerable consumers, empower DisCos –Adelabu

*Chief Adebayo Adelabu, Minister for Power, discloses N700 billion from the Federation Account Allocation Committee is secured under the Presidential Metering Initiative to distribute 1.1 million prepayment electricity meters by end of 2025, and 2 million meters annually for next five years

Isola Moses | ConsumerConnect

The Nigerian Government is planning a “targeted electricity subsidy” to protect vulnerable households, and other Nigerian consumers while ensuring a long-term commercial viability of the power sector of the economy.

ConsumerConnect reports Chief Adebayo Adelabu, Honourable Minister for Power, who disclosed at the Nigeria Energy Forum Tuesday, October 28, 2025, in Lagos, said the the government also would introduce a minimum capital adequacy requirement for the electricity Distribution Companies (DisCos) during their licence renewal process.

The Minister the essence of doing this is to strengthen liquidity of the DisCos and improve their quality of service delivery to power consumers.

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Adelabu stated thar Nigeria has started export of locally produced solar panels to Ghana.

According to him, this development signalled the country’s readiness to serve regional power markets.

He also explained that a targeted national programme to help in accelerating grid expansion and modernisation under the Presidential Power Initiative (PPI) is in progress.

Phase Zero of the PPI has already delivered over 700MW of additional transmission capacity, while Phase One — expected to add 7,000MW — is underway, with contracts signed with Siemens Energy, CMEC, Elswedy Electric, and Power China, Adedayo said.

Besides, the Minister Adelabu announced the successful integration of the 700MW Zungeru Hydropower Plant into the national grid.

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He confirmed that has helped to boost the average generation capacity to 5,300MW 2024, up from 4,200MW 2023.

He equally affirmed the Federal Government’s unbundling of the Transmission Company of Nigeria (TCN) into the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP).

The Minister described this reform as “long overdue and vital to grid efficiency in the power value chain.

Aim of N700 billion Presidential Metering Initiative

As part of efforts at addressing metering gaps in the electricity ecosystem in Nigeria, Chief Adedayo disclosed the N700 billion from the Federation Account Allocation Committee (FAAC) had been secured under the Presidential Metering Initiative (PMI).

The DisCos are expected to distribute 1.1 million prepayment electricity meters by the end of 2025, and 2 million meters annually for the next five years, he noted.

According to him, these would complement the 3.2 million prepayment meters being procured through the World Bank’s DISREP programme.

Adelabu further said that the Federal Government was mobilising over $2 billion through key facilities, including the $750 million World Bank DARES programme, the $500 million NSIA RIPLE platform, and the $190 million JICA fund.

He explained the objective is to drive renewable energy expansion and increase power access across rural and underserved communities in the West African country.

Asufee from these, Adelabu disclosed the Ministry of Power recently upgraded training infrastructure at the National Power Training Institute of Nigeria (NAPTIN), with new workshops, simulation tools, and hostel facilities to enhance capacity building.

The Minister said: “At the 2025 Nigerian Renewable Energy Innovation Forum, we signed agreements that will bring on stream nearly 4 gigawatts per annum of solar manufacturing capacity — equivalent to 80 per cent of our current national generation capacity. ”

Emphasising the readiness of Nigeria’s power sector to embrace more investments, the Minister urged private developers and financiers to take advantage of emerging opportunities, particularly in transmission infrastructure.

He stated: “With over 10 gigawatts of stranded generation capacity, we are open to strategic partnerships to mobilise the investments required to unlock this potential.”

The Minister urged industry stakeholders to collaborate strategically, and invest purposefully with a view to igniting the desired industrial growth, technological innovation, and shared prosperity in Nigeria.

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