KEYNOTE ADDRESS DELIVERED BY THE HONORABLE MINISTER OF POWER, ADEBAYO ADELABU OFR, AT THE POLICY ROUNDTABLE OF THE ASIWAJU SCORE CARD SERIES, ORGANISED BY THE APC PROFFESSIONALS’ FORUM, WITH THE THEME “ENHANCING THE POWER SECTOR FOR ECONOMIC GROWTH” HELD AT THE MUSA YA’ADUA CENTER ABUJA, ON TUESDAY, 15TH MAY, 2024


Distinguished Party Leaders,
Members,
Distinguished Colleagues,

I stand before you today to discuss a topic of utmost importance to me and millions of Nigerians: the revitalization of our nation's electricity sector to power the Renewed Hope Agenda of His Excellency President Bola Ahmed Tinubu GCFR.

2.​It is no secret that a reliable and efficient electricity supply is the bedrock of any thriving economy. Without stable and reliable electricity supply, businesses struggle, education suffers, healthcare service delivery stays sub-optimal, and the full potential of our people and the nation remains unrealized.

3.​Studies have consistently shown a clear correlation between increased power generation and economic growth. Reliable electricity empowers businesses to expand production, attract investment, and create jobs. It fuels vital sectors like agriculture, manufacturing, and information technology, driving diversification and national competitiveness.

4.​For too long, Nigerians have grappled with power outages and an unreliable grid supply. This not only disrupts daily life, but also hinders our nation's progress and impact on the continent and global stage.
5.​However, I stand before you today not with lamentations, but with a Renewed Hope and a vision for a brighter future powered by a robust and sustainable power sector. A Nigeria where factories hum 24/7, innovation flourishes in tech hubs bathed in light, vaccine storage are adequately energized, and every child has the opportunity to learn under the glow of a study lamp. This is the future we are striving for, a future where a steady flow of electricity unlocks a wave of economic prosperity.

6.​President Bola Ahmed Tinubu's administration has wasted no time tackling power sector issues. In just one year, the government have implemented a multi-pronged approach designed to address issues across the Nigeria Electricity Supply Industry value chain and to set the sector on a path to recovery and prosperity. Here are some of the key achievements of the government in the last one year:
• Structural Reform of the Industry through legislations: In June 2023, President Bola Ahmed Tinubu officially signed the 2023 Electricity Act into law, marking a significant milestone in Nigeria’s electricity sector. The new law focuses on enhancing the regulation and management of the electricity value chain with the active participation of the sub-national governments. This has resulted in the process of devolution of regulatory powers to three states – Enugu, Ekiti and Ondo to set up their electricity market.

• Advance effort in the development of a National Electricity Policy and Strategic Implementation Plan to provide a comprehensive framework for the nation's electricity sector which signifies a concerted effort towards addressing longstanding challenges and charting a sustainable path forward in Nigeria's electricity industry.

• Resolution of the sector obligations with Presidential approval to defray legacy debts to gas companies to allow efficient gas supply for the sector going forward and payment mechanism to address Generation Companies debts to ensure necessary maintenance are resolved and evacuation capacity optimization.

• Infrastructure Development with additional 463MW transmission evacuation capacity added to the grid through the ongoing Presidential Power Initiative. This was made possible through the signing of an accelerated performance agreement in Nov 2023 supervised by President Bola Ahmed Tinubu and German Chancellor Olaf Scholz. Additionally, the government has put in place required framework to achieve an injection of 3.5 million meters into the power sector – 1.5 million meters through the World Bank Distribution Support Recovery Program and 2 million meters through the Presidential Metering Initiative.

• Improvement of grid Generation Capacity with the addition of 700MW (with capacity to evacuate 600MW) added to the grid from the newly commissioned Zungeru hydropower plant.

• Transmission segment of the sector has been set on a path of optimal productivity with a regulatory order to unbundle Transmission Company of Nigeria from a single entity to Independent System Operators (System and Market Operator) and Transmission System Provider. This process ensures a drive in the efficiency and transparency of the mid-stream of the Nigeria power sector value chain.

• Distribution segment of the sector have been incentivized to guarantee improved service level for the Band A customers with introduction of cost-reflective tariffs (a key liquidity conditions suitable for driving investment) and improved monitoring and enforcement of service delivery by the Discos with necessary sanctions set in place for erring operators.

• Commitment to achieving the Nigeria Energy Transition Plan with the conclusion of the $550m Nigeria Electrification Plan which has bridged the energy access deficit by providing electricity to over 1.1 million households, MSMEs, educational and healthcare facilities in unserved and underserved rural communities.

• Catalyzing Investment in the Sector with the Nigeria Sovereign Investment Authority launching a US$500 million initiative; Renewables Investment Platform for Limitless Energy (RIPLE) RIPLE, in November 2023 dedicated to the development, investment, and operation of renewable energy projects across the entire value chain. Additional investment catalyzed into the sector with the finalization of World Bank Distributed Access through Renewable Energy Scale-up (DARES) $750 million facility to increase access to electricity for 2.5 million people through deployment of solar home systems and mini grids to households, MSMEs throughout Nigeria, educational and health facilities.

7.​We are beginning to see some progress from the outcome of the reform process and key achievements of the administration in the last one year. However, we will not relent until we have a resilient and efficient electricity sector that meets the needs of all Nigerians.

8.​To achieve this the Ministry of Power under my leadership has been engaging key sector stakeholder, industry experts, development partners and civil society groups on the way forward to achieve a viable and bankable Nigeria Electricity Supply Industry. Some of the key interventions we would be exploring going forward include:

• Introduction of an organic, strategic, suitable, and well-structured capitalization into the sector for sustained recapitalization of the Nigeria Electricity Supply Industry.

• Enforcement of a data-driven decision-making process through proper data centralization and management, capacity building of industry enablers, and active stakeholder engagement for improved universal access, and industry reliability.

• Adoption of further blended finance to catalyze investment in the sector to realize the Nigeria Energy Transition Plan for leveraging a diversified mix of sources especially renewable energy sources to achieve climate resilience, low carbon economy, and Energy Transition.

• Introduction of an integrated and multi-faceted approach to bridging skill gaps in the sector through a comprehensive skills assessment and training needs framework with emphasis on gender equality, innovation and research & development initiatives to improve the sector’s enabling environment.

• Promoting Investment and Public Private Partnerships to source new investment geared towards ensuring Transmission and Distribution Network enhancement coupled with a pricing framework that guarantees RoI for investors to ensure efficient power delivery across the nation.

• Regulatory framework to address outstanding obligations and to prevent future liabilities from crystalizing through enforcement of contract sanctity.

• Active support to the sub-national governments to have a holistic view and implementation approach ahead of declaration of an electricity market and

• Consumer empowerment through improved communication strategies to enhance public knowledge and communication channels between industry stakeholders and consumers to ensure clear and transparent information flow.

9.​The journey ahead will not be without its challenges. However, I believe a reliable and sustainable power sector is the cornerstone of a thriving Nigeria and I am confident that by working together, we can overcome the challenges ahead and achieve our desire for a wholly energized nation.

10.​We call upon the different stakeholders to play their part:
• To the public sector players, we request your unwavering patriotism as you conduct your activities in the sector.

• To the private sector players, we invite you to join us in building a brighter energy future for Nigeria.

• To the civil society and consumer groups, your advocacy and constructive criticism are crucial in holding us accountable and ensuring transparency.

• To the development partners, your technical support is invaluable at this transformative phase of the sector.

• To the Nigerian People, we implore your continued patience, understanding, and cooperation as we implement these reforms. The road may seem gloomy and rough right now, but I assure you all that there’s light at the end of the tunnel where we can all shout UP-NEPA once and for all.

11.​Let us all imagine a nation bathed in light with the vibrant energy of its empowered people, where businesses are flourishing, innovation is soaring, and essential services can reach every corner. That is the vision the President Bola Ahmed Tinubu Administration is working towards, and I call on us all to stand on this mandate of Renewed Hope Prosperity and Posterity.

12.​Long live, All Progressive Congress.
13.​Long live, Federal Republic of Nigeria!