The Federal Government announced that its reforms in the power sector have successfully attracted $2 billion in new investments, while liabilities have been reduced to N146 billion. Minister of Power, Adebayo Adelabu, shared this information on Thursday in Abuja during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO).

Adelabu stated that the reforms, which focus on policy overhaul, market liberalization, and institutional strengthening, are repositioning the sector for sustainability, efficiency, and increased private sector participation. The Electricity Act 2023 is central to these reforms, enabling the decentralization of the sector and opening avenues for subnational participation.

The reforms have attracted over $2 billion in fresh investments into the sector. Sector revenue grew by 70 percent in 2024, and government liabilities were reduced by approximately N700 billion, reflecting improved efficiency and cost recovery mechanisms. The minister commended NELMCO for its role in stabilizing the sector, noting that the agency has reduced inherited liabilities from N2.303 trillion to N146.76 billion. NELMCO has delivered over N700 billion in savings to the Federal Government through rigorous verification and reconciliation processes.

The reforms have also led to the activation of 16 state electricity markets, stimulating competition and innovation. Generation capacity has increased from 13 gigawatts to 14 gigawatts, with a record operational milestone of 5,801.44 megawatts achieved.

The government is addressing the metering gap through the Presidential Metering Initiative. This initiative is supported by N700 billion mobilized through the Federal Account Allocation Committee and an additional $500 million World Bank facility. Procurement processes for millions of meters nationwide are already underway.

The commissioning of NELMCO's new headquarters was described as more than just unveiling a building; it signifies a reinforcement of the institutional and financial backbone necessary to sustain the reform process. NELMCO has successfully verified and settled billions in inherited obligations to international oil companies, gas suppliers, equipment vendors, state governments, and former staff members.

Chairman of the House Committee on Power, Victor Nwokolo, had previously called for increased funding for the power sector, emphasizing its critical role in driving the economy. He highlighted that prompt funding of power projects would catalyze economic activities, noting that the sector requires proper attention and adequate financial support to complete ongoing projects.