President Bola Tinubu has pledged sweeping reforms in Nigeria’s power sector, acknowledging deep structural challenges while insisting his administration is committed to delivering reliable electricity to citizens.
In a Democracy Day address on Friday, Tinubu described electricity access as a “democratic dividend” and said ongoing reforms were aimed at fixing decades of underinvestment, weak infrastructure and financial instability in the sector.
“Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it,” he said.
Tinubu said his administration inherited a power sector constrained by chronic generation shortfalls, unreliable gas supply, weak transmission infrastructure, high distribution losses and a metering deficit affecting more than four million customers.
He added that despite an installed generation capacity of about 13,500 megawatts, Nigeria has consistently been unable to generate, transmit and distribute power efficiently, leaving supply far below national demand.
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“The sector generated less than its installed capacity, transmitted less than it generated, and distributed less than it transmitted,” the president said.
Nigeria’s electricity sector has long struggled with structural inefficiencies, including ageing grid infrastructure, frequent system collapses and insufficient investment across the value chain. These constraints have forced millions of households and businesses to rely on costly generators and off-grid alternatives such as solar systems.
Recent increases in fuel prices have further raised the cost of alternative power sources, deepening pressure on households already grappling with inflation and a rising cost of living.
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Tinubu said his administration had taken steps to address these challenges through the Electricity Act, which decentralises power regulation and allows states greater authority to generate, transmit and distribute electricity within their jurisdictions.
He also said a Presidential Power Sector Task Force has been mandated to accelerate metering rollout and improve revenue collection, while a proposed N4 trillion bond would be used to clear verified legacy debts across the electricity value chain.
The president said the reforms were intended to restore financial stability to the sector and attract private investment into generation and distribution infrastructure.
He highlighted ongoing interventions by the Rural Electrification Agency, supported by the World Bank and the African Development Bank, which are expanding off-grid and mini-grid electricity projects in underserved communities, including schools, hospitals and rural markets.
Beyond the power sector, Tinubu used the national address to defend his broader economic reform agenda, saying the measures were necessary to stabilise public finances and rebuild investor confidence.
He said federation revenues have improved since the reforms began in 2023, providing additional fiscal space for federal, state and local governments to increase spending on infrastructure, education, healthcare and security.
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Tinubu also pointed to rising domestic refining capacity as part of efforts to strengthen energy security and reduce dependence on imported petroleum products.
However, he acknowledged that many Nigerians continue to face economic hardship, citing high inflation, rising food prices and unemployment pressures.
“The reforms we are undertaking were not chosen for ease, but for necessity,” he said.
According to the president, more than 1,000 small and medium-sized enterprises have been certified for export, while non-oil exports grew by 21 percent over the past year as part of efforts to diversify the economy.
He also said the government is implementing an agricultural mechanisation programme involving the deployment of 10,000 tractors over five years to boost food production and rural livelihoods.
Tinubu said the next phase of reforms would focus on accelerating growth and ensuring broader distribution of economic gains.
“We are moving from uncertainty to stability,” he said. “Democracy must be felt in the pocket.”
Analysts say Nigeria’s power sector reforms will require sustained investment, improved governance and tariff adjustments to close the supply gap, as the country continues to grapple with one of the lowest per capita electricity consumption rates among major economies in Africa.
