Key Points
- Former Minister of Power Adebayo Adelabu has called for sustained commitment to ongoing reforms to ensure industry stability.
- Adelabu officially handed over the ministry to Permanent Secretary Alhaji Mamudah Mamman on Thursday.
- The former minister defended unpopular measures, such as the Cost Reflective Tariff (CRT), as essential for long-term sector sustainability.
- He highlighted the Electricity Act 2023 and the participation of 16 states in the power market as major milestones of his tenure.
- Adelabu resigned his position with presidential approval to pursue his governorship ambition in Oyo State.
Main Story
Adebayo Adelabu, the immediate past Minister of Power, has emphasized that consistency in policy is the only way to firmly establish Nigeria’s power sector on a sound footing.
During a formal handover ceremony in Abuja, Adelabu argued that while some reform measures were met with resistance, they were necessary to correct decades of inadequate attention from successive governments.
He likened the current stage of reforms to laying a foundation on swampy terrain, noting that while the results may not yet be obvious to the public, they are critical for a future of stable and affordable electricity.
The former minister served for two years and eight months, a period marked by the signing of the Electricity Act 2023, which effectively decentralized and liberalized the power sector.
This legislative shift has already enabled 16 states to enter the power market and encouraged deeper private sector involvement.
However, Adelabu expressed ongoing concern regarding the performance of Distribution Companies (DisCos), suggesting the government should critically review their licenses when they come due because of a failure to meet investment obligations.
The Issues
- Maintaining the momentum of reforms requires significant courage from both political leaders and technocrats to avoid derailing progress.
- The transition to a Cost Reflective Tariff remains a point of contention, though sector regulators maintain it is vital for financial health.
- Despite privatization in 2013, many DisCos have struggled to provide the necessary capital investment to upgrade infrastructure.
- Ensuring that incoming leadership continues to build on the existing foundation rather than abandoning current strategic plans.
What’s Being Said
“These reforms are a journey, not an immediate destination. If the process is disrupted, it could derail progress.” — Adebayo Adelabu, Former Minister of Power
“Reforms are often unpopular, but we must move beyond the status quo if we are to develop as a nation.” — Adebayo Adelabu, Former Minister of Power
“Our achievements may not yet be obvious to Nigerians, but as the next leadership builds on them, their impact will become clear.” — Adebayo Adelabu, Former Minister of Power
What’s Next
- Permanent Secretary Alhaji Mamudah Mamman will oversee the ministry’s affairs until a new minister is appointed.
- Continued monitoring of the 16 states that have keyed into the new electricity market to assess sub-national impact.
- Potential reviews of Distribution Company licenses as the government evaluates their long-term investment commitments.
- Adebayo Adelabu will transition to full-time campaigning for his governorship bid in Oyo State.
Bottom Line
The success of Nigeria’s electricity industry hinges on the next administration’s willingness to sustain the decentralized and cost-reflective framework established under the 2023 Electricity Act.
