Power: Still a long walk

The Electricity Act 2023 perhaps remains the driving force behind the successes recorded in the power sector in 2025. With a record peak generation of over 6,000 megawatts (MW), improved national grid stability with zero collapses in the first quarter; the successful unbundling of the Transmission Company of Nigeria (TCN), among others, were very remarkable. While all these and others gives hopes, yet, it is still not El-Dorado, MUYIWA LUCAS writes.

Going by the record of successes recorded in the power sector, electricity situation in the country may have recorded a pass mark. From Generation to transmission, it has been sweet stories all the way.

The Transmission Company of Nigeria recorded a transmission peak of 5,801.84 megawatts (MW) on March 4. Managing Director of TCN, Sule Abdulaziz, described this as “a historic milestone which occurred during the year” because it remained the highest peak of electricity generation ever delivered on the national grid.

 “A highlight of our progress came on March 4, when TCN transmitted an all-time peak generation of 5,801.84 MW nationwide. On the same day, a maximum daily energy of 128,370.75 megawatt-hours (MWh) was delivered across the country—the highest ever recorded in Nigeria’s history,” Abdulaziz disclosed, adding that TCN’s wheeling capability has grown to 8,700MW.

TCN’s record transmission rode on the back of power generation and grid stability witnessed for most part of the year. For instance, new records for peak power generation throughout the year, were recorded culminating in a 6,003 MW electricity generation recorded on March 2. The average daily generation and distribution in Q1 2025 was approximately 5,700 MW, about 40 per cent increase from Q3 2023 levels.

The national grid also enjoyed some huge measure of stability in the first half of 2025, with no major system collapses reported in Q1 and Q2 when compared to previous years. Power plants like the 700MW capacity Zungeru Hydropower Plant and the 40MW Kashimbila Hydropower evacuating their capacities into the national grid. Zungeru plant now contributes about 550 MW to the national grid.

Still, the country’s power system successfully operated in real-time synchronisation with the broader West African regional grid for four uninterrupted hours, a breakthrough for regional power trade.

The birth of the Nigerian Independent System Operator (NISO) in April, separated system and market operations from the Transmission Service Provider (TSP), also greatly enhanced efficiency and reliability as mandated by the Electricity Act of 2023. Under the unbundling, the TCN, now acts as Transmission Service Provider (TSP), focusing on building and maintaining the physical transmission grid, while NISO acts as an independent body that manages market operations, generation dispatch and grid security. The unbundling aims for greater operational clarity, transparency, efficiency, and investment attraction in the Nigerian power sector, following mandates from the Electricity Act 2023. And this is paying off. For instance,  as at November 2025, TCN had inaugurated 82 new power transformers, adding over 8,500 Megavolt-Amperes (MVA) to the national grid.

As provided for in the EA 2023, regulatory oversight roles was successfully transferred to eleven states, allowing sub-national governments greater control over their local electricity markets.

The Rural Electrification Agency (REA) deployed over 200 mini-grids across underserved communities in 2025 under the Nigeria Electrification Project (NEP). The $750 million Distributed Access through Renewable Energy Scale-Up (DARES) project was approved to deploy 1,350 mini-grids nationwide, aiming to impact 17.5 million Nigerians.

Phases 1 and 2 of the Energising Education Programme (EEP) were completed, providing reliable power to federal universities and teaching hospitals, with EEP III reaching 70 per cent completion.

The tariff reforms, including the cost-reflective tariff for Band A customers, generated an additional N700 billion in revenue, reflecting a 70 per cent increase growing from N1 trillion in 2023 to N1.7 trillion by early 2025. It has also helped to reduce the government’s subsidy shortfall by 35 per cent, decreasing from N3 trillion to N1.9 trillion.

Presidential Metering Initiative (PMI) also recorded some great measure of progress as the federal government secured N700 billion to deploy 1.1 million meters by the end of 2025, aiming to close the national metering gap.

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The National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP), which set a clear roadmap for a resilient and sustainable power sector, were developed and submitted for approval.

Minister of Power, Adebayo Adelabu, may well beat his chest for the successes recorded in the power sector in the outgoing year.  But for the consumers on the street, these successes do not reflect in their homes given several reasons. The long hours of darkness they have been clamped into; the hydra-headed problems of securing meters; issues around estimated billings, among others calls for urgent attention. 

As of October 2025, the electricity metering shortfall in Nigeria was approximately 5.3 million customers, with a national metering rate of 56.07 per cent. The data from the Nigerian Electricity Regulatory Commission (NERC) indicates total active registered customers: 12.07 million; total metered customers: 6.77 million and total unmetered customers (shortfall): Approximately 5.3 million. This represents a steady improvement from earlier in 2025, where the deficit was around 5.4 million customers in June and an estimated 6.47 million in March. The government has initiatives, such as the Presidential Metering Initiative and the Distribution Sector Recovery Programme, to close the metering gap, with targets to install millions more meters in the coming years.

Still, the Distribution Companies (DisCos) have been weighed down by aging infrastructure, underinvestment, low revenue collection, largely due to estimated billing, theft, unmetered customers; inadequate tariffs (not cost-reflective), weak enforcement, lack of technical capacity, and poor service delivery, especially where there is a fault or need to replace an equipment.  leading to a liquidity crisis and hindering sector growth.

Earlier this month, the House of Representatives expressed grave concern over the failure of DisCos to meet their obligations and shortchanging Nigerians 13 years after privatisation of the power sector.

Chairman, Ad-hoc Committee investigating expenditure in Nigeria’s power sector, Ibrahim Al-Mustapha Aliyu and other members expressed concerns at its resumed investigative hearing held in Abuja, during the examination of the activities of Abuja DISCO, Port Harcourt DISCO and Benin DISCO respectively.

Aliyu said despite privatisation of the power sector which was aimed at providing stable power in the country, Nigerians still grappling with the challenges of power supply.

He said: “You know  the overall perception of Nigerians is that DISCOs are the major problem, the major setback to the noble initiative of privatizing the power sector.

 “Because most of the DisCos fall in the hands of those that are not truly investors, that are not actually ready to invest, but take advantage of the sector. You know, nobody will agree with you that after 13 years, you could not show one particular deliberate initiative.

 “I have cited an example with Abuja DISCO last time. Abuja DISCO extends up to Kontagora, but their major concentration is in Abuja, because that’s where they can make money.

 “The larger part of Kontagora may be without electricity. They don’t bother. And to be honest, they find it not economically wise, as investors, to waste money extending lines, maybe of 300, 200, 250 kilometers to rural areas, to those other areas that they feel they will not be able to recoup their investment.

 “This is not the intention of the privatization. And this is what is constantly taking us to the major. issue of probe, the issue of establishing the effectiveness or otherwise of the privatization generally. Look at the DisCos on 60% by the investors and 40% by the government.

 “But if I ask you, how much have you returned as a dividend of the 40% back to the government? The answer is nil, because you always pose as those that are investing for charity at last. So these are the key issues. I have said it before we begin this meeting, maybe at the beginning of this meeting, that you know, we have already opened talks with these investors, with the co-investors. That is the co-investors to their DISCOs,”  Aliyu submitted.

Generally, stakeholders maintained that until the tripod in the sector- Gencos, TCN and Discos are able to get their acts correctly, then the issues may persist.

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