Nigeria’s Power Sector Challenges: Key Issues for the New Minister

President Bola Tinubu is on the lookout for a new Minister of Power, and the person taking over will inherit one of Nigeria’s most challenging sectors. The outgoing minister, Adebayo Adelabu, leaves behind a power sector struggling with deep-rooted problems that no administration has successfully fixed. Even with the Electricity Act 2023 aiming to decentralize the market, the reality is far from the envisioned reforms. The sector is plagued by gas shortages, an unmet metering gap, poor transmission infrastructure, and distribution companies on the brink of bankruptcy. The incoming minister must take action on these issues immediately.

Choosing the Right Minister: Expertise Over Politics

The first challenge the new minister will face is being chosen based on technical knowledge rather than political reasons. Experts argue that the appointment must be free from political interference. Adetayo Adegbemle, convener of PowerUpNigeria, insists that only a technical expert, not a political appointee, should take on the role. The new minister needs to understand how issues like gas contracts, metering gaps, and distribution company insolvency are all interconnected. Without this knowledge, any minister will be stuck reacting to problems instead of solving them.

The Metering Crisis: A Key Problem

One of the biggest problems in Nigeria’s power sector is the lack of proper metering. As of December 2025, only 57.27% of electricity customers had meters, leaving the rest billed by estimates. This leads to inflated charges, encourages energy theft, and leaves distribution companies with insufficient revenue. This issue affects the entire power supply chain, from generation to distribution. Adegbemle argues that solving this problem requires more than just importing meters. He suggests building a local metering ecosystem, which would reduce Nigeria’s dependence on foreign imports and create jobs in the process. The same should be done for transformers and other critical infrastructure. Local production would lower costs and provide long-term stability.

Gas Supply Shortages Are Limiting Generation Capacity

Despite having some of the largest natural gas reserves in Africa, Nigeria’s thermal power plants are constantly underperforming because they lack a consistent supply of gas. This failure to prioritize domestic gas use over exports is a major policy issue. Ayodele Oni, a partner at Bloomfield Law Practice, highlights that the Ministries of Power and Petroleum Resources have not coordinated effectively, causing missed opportunities. The new minister must push for agreements that ensure power plants get the fuel they need to run efficiently, rather than allowing gas to be exported while power plants sit idle.

Insolvency in Distribution Companies

Even if electricity generation improves and gas supplies stabilize, the power still has to go through the distribution companies. Unfortunately, many of these companies are insolvent. Oni argues that the new minister must focus on genuine recapitalization, not just temporary regulatory relief. This means creating an environment that allows private investment to flow into these companies. To do this, issues like the metering gap and tariff structures must be addressed, and performance targets must be met. Only through this process can distribution companies become financially viable again and start upgrading their networks.

Navigating the Tariff Dilemma

Raising electricity tariffs to reflect the true cost of power is necessary for the sector’s survival, but it’s a politically sensitive issue. Oni suggests a balanced approach: implementing cost-reflective tariffs while providing subsidies for low-income households. This would allow the sector to generate the necessary revenue without causing financial hardship for the poorest Nigerians. Without this balance, the sector will remain underfunded, or tariffs will rise too high, causing political backlash.

From Legislation to Action: Implementing the Electricity Act 2023

The Electricity Act 2023, which aims to decentralize the power market, is a promising reform. However, good laws only work when they’re implemented properly. The new minister must make sure this law is put into action. Oni recommends appointing a Coordinating Minister for Energy to oversee all aspects of the energy sector, including power, gas, and water, to ensure these ministries work together. The current system is inefficient, and this fragmented approach has caused missed opportunities for policy alignment.

Building Trust Through Transparency

For any reform to succeed, transparency is crucial. Data about power supply, revenue collection, and sector performance must be publicly available so Nigerians can hold the government accountable. Transparency will help rebuild trust in a sector that has failed to meet expectations for years. The new minister must ensure that performance data is published regularly and can be scrutinized by the public.

Frequently Asked Questions

Why is Nigeria searching for a new Minister of Power?
President Bola Tinubu is replacing outgoing Minister Adebayo Adelabu. The new minister will tackle the deep problems facing Nigeria’s power sector.

What is Nigeria’s current metering rate?
As of December 2025, only 57.27% of Nigeria’s electricity customers have meters. The rest are billed based on estimates.

Why do Nigerian power plants fall short of their generation capacity?
Nigeria’s thermal power plants lack a steady supply of gas, despite having large natural gas reserves. This lack of coordination between the Ministries of Power and Petroleum Resources has caused this issue.

What is wrong with Nigeria’s distribution companies?
Many distribution companies are financially insolvent due to issues like the metering gap, poor tariff structures, and other unresolved challenges.

Should Nigeria raise electricity tariffs to cost-reflective levels?
Yes, experts agree that cost-reflective tariffs are necessary. However, they should be paired with subsidies for low-income households to avoid causing financial strain on the poorest Nigerians.

What qualifications should Nigeria’s next Power Minister have?
Experts argue that the new minister should be chosen based on technical expertise, not political connections. A solid understanding of the sector’s challenges is essential for long-term reform.

next minister must face these issues head-on to turn things around.