Minister of Power Joseph Tegbe has outlined plans to stabilise Nigeria’s electricity grid, strengthen transmission infrastructure and address mounting financial challenges in the power sector, as the Federal Government seeks to improve electricity supply and restore the industry’s financial sustainability.
Tegbe announced the priorities at the opening of the Nigeria Energy Leadership Summit and Exhibition 2026 at the Landmark Centre, Lagos, on Tuesday. The event, which runs until October 29, is themed “Strengthening Power Delivery Through Execution, Coordination and Performance.”
The minister said the government must move beyond designing reforms to delivering measurable improvements in electricity supply, system performance and the financial sustainability of the Nigerian Electricity Supply Industry.
He identified gas supply constraints, overstretched transmission infrastructure, distribution losses and accumulated industry liabilities as major obstacles requiring coordinated action across the electricity value chain.
Government identifies three priority energy corridors
Tegbe outlined four priorities for the power sector, including strengthening economic energy corridors, improving liquidity and financial sustainability, optimising existing assets and expanding infrastructure to meet future electricity demand.
He identified three priority corridors for improving power delivery: Lagos–Ogun, Benin–Enugu–Port Harcourt, and Abuja–Kaduna–Kano.
The strategy is designed to align electricity generation, transmission infrastructure, distribution capacity and identifiable demand within the corridors, with the aim of improving supply reliability and supporting industrial productivity.
The minister also stressed the need to maximise the use of existing power-sector assets while expanding infrastructure to accommodate rising demand.
Government tackles power-sector debt and losses
Tegbe identified the reduction of technical and commercial losses as another priority, pointing to initiatives such as the Presidential Metering Initiative, the Distribution Sector Recovery Programme and the Meter Acquisition Fund.
On the sector’s financial position, he said the government had paid N1.23 trillion out of an estimated N3.3 trillion in legacy liabilities.
He added that measures were being introduced to block financial leakages and prevent new liabilities from accumulating, as the government seeks to improve the financial sustainability of the electricity market.
The measures are intended to strengthen the sector’s capacity to attract investment and improve service delivery, while translating electricity reforms into economic benefits such as higher industrial productivity, business growth and job creation.
Nigeria’s electricity reforms face implementation test
The roadmap comes amid broader efforts to restructure Nigeria’s electricity market and attract investment following the enactment of the Electricity Act 2023, which created a framework for greater participation by state governments in electricity generation, transmission and distribution within their jurisdictions.
In March 2026, the Federal Government said power-sector reforms had attracted $2 billion in investment and reduced liabilities to N146 billion. It also reported that 16 state electricity markets had been activated, potentially opening the sector to greater competition and investment.
However, regulatory coordination remains a significant part of the reform process. In April 2026, PricewaterhouseCoopers said the success of Nigeria’s electricity reforms depended on clearer regulatory frameworks and stronger coordination between federal and state authorities.
Tegbe’s latest priorities place greater emphasis on implementation, with the government seeking to improve the performance of existing infrastructure, strengthen financial discipline and coordinate investment across the electricity value chain.
Whether the measures deliver more reliable electricity will depend on how effectively the government addresses the sector’s interconnected challenges, from gas supply and transmission constraints to distribution losses and outstanding liabilities.
