Bola Tinubu Initiates Search for New Minister of Power
President Bola Tinubu has commenced the search for a new Minister of Power, following the departure of Adebayo Adelabu. The incoming minister will step into a sector plagued by prolonged structural decline and systemic instability.
Electricity Act 2023 and Ongoing Challenges in the Sector
Despite the introduction of the Electricity Act 2023, which outlines a roadmap for market decentralization, significant disparities between policy and the realities of the national grid persist. The sector grapples with continuous gas shortages for power generation, metering gaps exceeding 40%, and numerous challenges within the power infrastructure.
Importance of Technical Expertise in Ministerial Appointments
Experts assert that the next minister should be appointed based on technical knowledge rather than political affiliation. Mr. Adetayo Adegbemule, Chairman of Power Up Nigeria, emphasized the necessity of eliminating political influences in this crucial appointment. He advocates for a minister who comprehends the sector’s complexities and possesses a strong mandate to drive transformative change.
Addressing the Metering Crisis
Adegbemule highlighted that policymakers often neglect the root causes of market liquidity challenges. He pointed out that without a comprehensive resolution to the metering issue, the sector will face persistent stagnation. As of December 2025, Nigeria’s metering rate stood at 57.27%, with only 6.9 million of the 12.1 million active electricity customers properly metered. Adegbemule warned that growth in generation, transmission, and distribution will remain muted unless this issue is decisively addressed.
Resolving Gas Supply Challenges
According to Ayodele Oni, a partner at Bloomfield law firm, the persistent gas shortage necessitates urgent attention. He indicated that although Nigeria boasts significant natural gas reserves, thermal power plants frequently find themselves without fuel. Oni characterized the ongoing situation as a failure of policy, asserting that power generation will continue to fall short of installed capacity until gas supply issues are resolved. Establishing an effective collaboration with the Ministry of Petroleum is crucial for the new minister.
Revitalizing the Distribution Landscape
Oni further examined the current plight of electricity distribution companies (DisCos), many of which face bankruptcy and lack the commercial viability to attract investment. He contended that the new minister must spearhead a genuine recapitalization process. Additionally, he addressed the metering crisis, where millions of Nigerians endure estimated billing, leading to arbitrary charges, energy theft, and financial instability for DisCos. Oni called for stringent targets and enhanced public accountability for meter asset provider programs.
Engaging with Tariffs and Subsidies
On the subject of tariffs, Oni acknowledged that the next minister will confront the complex issue of cost-reflective pricing. He cautioned that while necessary, such discussions could be politically sensitive in the absence of a reliable social safety net. “The solution lies not in abandoning cost-reflective tariffs, but in pairing them with targeted subsidies for low-income households,” he argued. With this approach, it may be possible to maintain the industry’s economic viability while protecting vulnerable populations.
Creating a Unified Energy Framework
Oni also endorsed the role of a Coordinating Energy Minister, suggesting that the existing siloed approach—where electricity, gas, and water operate independently—contributes to dysfunction within the sector. He emphasized that the new Minister must prioritize the full implementation of the Electricity Act 2023, which empowers state governments to actively participate in electricity supply. Furthermore, he advocated for transparency in supply and revenue reporting, asserting that a culture of unaccountability must be dismantled for the industry to thrive.
