“FG must clear N1.94trn tariff shortfall, N2trn legacy debt to sustain power sector gains – Adelabu

Oredola Adeola

Nigerian power sector achieved a record available power generation of 6,003 megawatts (MW), the highest in the nation’s history, followed by another landmark within the period, when the country recorded a peak generation evacuation of 5,801.84 MW and a daily maximum energy output of 128,370.75 megawatt-hours (MWh).

The Transmission Company of Nigeria (TCN) and Bolaji Tunji, Special Adviser on Strategic Communication to Adebayo Adelabu, Minister of Power, made this known in a statement obtained by Advisors Reports on Wednesday.

The TCN stated that the achievement was recorded on March 4, 2025, at 21:15 hrs, and signifies the gradual but consistent improvement in the power sector despite existing challenges.

The Power Minister in the statement emphasized that to sustain these improvements in the power sector, the Federal Government would have to pay down on the tariff shortfalls of N1.94 trillion for 2024 and legacy debts of N2 trillion to the GENCOs.

According to him, a new dawn is breaking in the Nigerian power sector as the Federal government through the Ministry of Power announces a series of historic achievements in Nigeria’s power sector, marking a significant step forward in the nation’s quest for sustainable and reliable electricity supply.

Tunji stated that the landmark recorded signifies that if there was electricity demand from the Distribution companies (DisCos) then the Generating companies (GenCos) would have the capacity to increase power generation to over 6000 MW.

“The record peak generation of 5,801.84 MW achieved on Tuesday, March 4, 2025, compared to a previous peak of 5,801.60 MW achieved in March 2021 is also quite critical as it shows the capacity of generated energy that was transmitted through the transmission grid.

“Also, the record Maximum Daily Energy of 128,370.84 MWH on Tuesday, compared to 125,159.48 MWH achieved on in February 2025 is probably the most important of all the records as it shows an increase in Power generated, transmitted, distributed and utilized by customers. This indicates an increase of commercially viable demand in the downstream.

“The results seen so far has been due to a partial implementation of the reforms in the sector, and based on this trajectory we will see further improvements in the sector”, Tunji said.

The statement also expressed optimism about the sustainability of these records and the potential for further improvements in the coming days.

The Power Minister’s spokesperson explained that the record available generation of 6,003 MW, the peak evacuation of 5,801.84 MW, and the daily maximum energy output of 128,370.75 MWh are testaments to the strategic reforms being implemented by the Minister of Power.

“These achievements are not just numbers; they represent a brighter future for Nigeria, where businesses can thrive, households can enjoy uninterrupted power supply, and the economy can grow sustainably,” he said.

Quoting the Minister, Tunji further noted that the recent milestones are the result of concerted efforts by the Federal Ministry of Power, in collaboration with key stakeholders in the sector, to address longstanding challenges and optimize the nation’s power infrastructure.

He said, “These efforts include the rehabilitation and upgrading of transmission and distribution networks, the implementation of innovative technologies, and the introduction of policy reforms aimed at enhancing efficiency and accountability.”

According to the statement, the Minister has been at the forefront of these initiatives, driving a comprehensive agenda to transform the sector and ensure that Nigeria achieves its full potential in power generation and distribution.

The Minister of Power has further emphasized that one of the key factors contributing to the recent achievements is the tariff review which has ensured liquidity in the sector and created a more sustainable and investment-friendly environment for the power sector.

He stated that by ensuring that tariffs reflect the true cost of power generation and distribution,

Adelabu also revealed that the government is paving the way for increased private sector participation and the mobilization of much-needed capital for infrastructure development.

According to the Minister, the regularization of tariffs will play a critical role in unlocking the sector’s full potential and driving further improvements in power generation and distribution.

He said, “It would be important to continue the tariff reforms to ensure consumers start to pay for the energy consumed

“By the time the tariffs are fully regularized, we will be moving closer to 7,000 MW of available generation capacity. This will mark another significant milestone in our journey towards a stable, reliable, and efficient power sector that meets the needs of all Nigerians”.

Adelabu explained that the Federal Government recognized that there is still much work to be done, and we cannot afford to rest on our laurels.

He noted that the support and cooperation of all stakeholders are critical to sustaining these achievements and driving further progress in the sector.

“This is just the beginning. We are determined to build on these achievements and deliver a power sector that meets the aspirations of all Nigerians”, the Power Minister said.