Key points
- The Federal Government has launched major reforms to tackle debt, metering gaps and investment challenges in the electricity sector.
- A N501 billion bond has been issued under the Presidential Power Sector Debt Reduction Programme, while GenCos and GasCos have signed settlement agreements worth N2.28 trillion.
- Nigeria has surpassed seven million installed electricity meters, with over one million additional meters being deployed nationwide.
- Cost-reflective tariffs now cover about 45 per cent of the electricity market, reducing subsidy costs by more than N1 trillion.
- The government says the reforms aim to attract investment, improve power supply and strengthen the economy.
Main story
The Federal Government says reforms introduced under President Bola Tinubu’s administration are beginning to improve the performance of Nigeria’s electricity sector after years of underinvestment, mounting debts and unreliable power supply.
The reforms are centred on the Presidential Power Sector Debt Reduction Programme (PPSDRP) and the Presidential Metering Initiative (PMI), both designed to restore financial stability, improve electricity billing and attract private investment.
Speaking at the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos, the President’s Special Adviser on Oil and Gas, Olu Verheijen, said the administration was focused on turning Nigeria’s energy resources into measurable economic outcomes.
According to her, one of the administration’s biggest achievements has been addressing the liquidity crisis that affected electricity generation companies and gas suppliers.
The Federal Executive Council approved a debt reduction programme worth up to N4 trillion to settle verified obligations owed to operators, with the first N501 billion bond successfully issued in late 2025.
The programme gathered further momentum in 2026 after generation companies and gas suppliers signed settlement agreements worth about N2.28 trillion, improving confidence across the sector.
The administration has also accelerated electricity metering through the Presidential Metering Initiative.
According to the Nigerian Electricity Regulatory Commission (NERC), Nigeria surpassed seven million installed electricity meters in January 2026, while more than one million additional meters are currently being deployed nationwide.
The initiative is also promoting local manufacturing, with meter procurement now prioritising Nigerian producers under the government’s Nigeria First policy.
To support faster installations, the government plans to train and certify 5,000 meter installers under the PMI-Install programme.
Alongside metering, electricity tariff reforms have expanded cost-reflective pricing to about 45 per cent of the market, while reducing the Federal Government’s electricity subsidy burden by more than N1 trillion.
The administration says the reforms are designed to improve sector sustainability while protecting vulnerable consumers through targeted support.
The issues
Nigeria’s electricity sector has struggled for decades with inadequate investment, poor infrastructure, weak revenue collection, estimated billing and mounting debts owed to power generation and gas companies.
While recent reforms have improved investor confidence and financial stability, sustained implementation will be critical to improving electricity supply, attracting new investment and delivering better service to consumers.
What’s being said
“Nigeria has never lacked potential… What we have lacked is the discipline to turn resources into results.” — Olu Verheijen, Special Adviser to the President on Oil and Gas
“This is not a bailout. It is a strategic reset that clears verified arrears, restores liquidity and gives operators the footing to invest with confidence.” — Olu Verheijen
“Metering protects consumers, reduces estimated billing, and builds the commercial discipline investment requires.” — Olu Verheijen
“For the first time in years, we are seeing a credible and systematic effort by government to tackle the root liquidity challenges in the power sector.” — Tony Elumelu, Chairman, Heirs Holdings
What’s next
Attention will shift to the full rollout of the Presidential Metering Initiative, implementation of the remaining debt settlement programme and expansion of cost-reflective tariffs.
Industry stakeholders will also monitor whether improved sector liquidity translates into increased investment, higher generation capacity, expanded transmission infrastructure and more reliable electricity supply.
Bottom line
Nigeria’s electricity reforms are beginning to produce measurable results through debt resolution, expanded metering and financial restructuring. If implementation continues, the reforms could strengthen investor confidence, improve power supply and support broader economic growth.
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