Home [ MAIN ] NEWS Power reforms must fix entire value chain, says Tegbe

Power reforms must fix entire value chain, says Tegbe

Key points

  • Power Minister Joseph Tegbe says reliable electricity requires reforms across generation, transmission, distribution and market financing.
  • Government plans a nationwide transmission audit, grid upgrades and regulatory harmonisation with state electricity markets.
  • Nigeria has sustained about 5,000MW generation, while the government is accelerating metering, debt settlement and renewable energy deployment.

Main story

The Federal Government has said improving electricity generation alone will not solve Nigeria’s power challenges, stressing that reforms must address the entire electricity value chain to achieve reliable and sustainable electricity supply.

Minister of Power, Joseph Tegbe, said this during an interactive session with journalists in Lagos, where he outlined the government’s “Resetting the Sector” initiative aimed at strengthening the electricity market, restoring investor confidence and improving service delivery.

According to the minister, the reform programme will include a nationwide technical audit of the transmission network to identify ageing infrastructure, overloaded substations, weak transmission corridors and other operational bottlenecks.

He said the ministry would also work with the Nigerian Electricity Regulatory Commission (NERC) and state electricity regulators to harmonise electricity regulation, eliminate overlaps and create a more predictable investment environment.

Tegbe said procurement challenges that previously delayed prepaid meter deployment had largely been resolved, while Nigeria had consistently generated about 5,000 megawatts of electricity over the past two weeks due to improved coordination among market operators and increased plant availability.

He added that the government was implementing the Power Sector Bond Initiative to clear legacy debts owed to generation companies, gas suppliers and other market participants, noting that disputed claims had been reconciled from about N6 trillion to N3.3 trillion, with N501.3 billion already paid and another N700 billion being processed.

The minister said strategic investments under the Grid Stabilisation Programme would target major transmission corridors, while the proposed Super Grid Programme would strengthen the national transmission backbone and support industrial growth.

He also highlighted the growing adoption of renewable energy, saying the government’s net-metering policy would allow consumers generating excess solar electricity to sell surplus power back to the national grid.

Tegbe said electricity subsidies remain in place for vulnerable consumers and expressed optimism that Nigerians would begin experiencing noticeable improvements in electricity supply within the next few months.

The issues

Nigeria’s power sector has long struggled with inadequate transmission capacity, poor distribution infrastructure, liquidity challenges and regulatory uncertainty. While generation capacity has improved, weaknesses across the broader electricity value chain have continued to limit reliable supply. The government’s latest reforms seek to tackle these structural constraints simultaneously rather than focusing solely on increasing electricity generation.

What’s being said

“Electricity must be generated, transmitted, distributed and paid for. Every part of the value chain must work efficiently for Nigerians to enjoy reliable power.” — Joseph Tegbe, Minister of Power.

“Our goal is simple: make electricity more available, make the grid more reliable, make the market financially sustainable and ensure power becomes a driver of economic growth rather than a constraint.” — Joseph Tegbe, Minister of Power.

“I did not say the subsidy is gone. We are addressing the issue, and by next year we will begin implementing measures to resolve it.” — Joseph Tegbe, Minister of Power.

What’s next

The government will begin a nationwide transmission audit, accelerate prepaid meter deployment, process outstanding payments to power sector operators, harmonise electricity regulations with states and implement grid stabilisation projects while advancing renewable energy and net-metering initiatives.

Bottom line

The Federal Government is shifting its power reform strategy beyond electricity generation, betting that coordinated improvements across transmission, distribution, regulation and market financing will deliver more reliable electricity and restore confidence in Nigeria’s power sector.

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