The Minister of Power, Joseph Tegbe, has revealed plans by the Federal Government to grow the country’s installed power capacity to 277 Gigawatts (GW) by 2060 by leveraging renewable energy and private sector investment.
He spoke at the Lagos Chamber of Commerce and Industry (LCCI) Renewable Energy Outlook Conference 2026 in Lagos, on Wednesday, noting, that the country’s energy transition agenda was designed not only to tackle climate concerns but also to address energy poverty, improve industrial productivity and unlock economic growth.
The conference, with the theme ‘Powering Nigeria’s Energy Transition: Policy, Investment and Industrial-Scale Deployment’, brought together policymakers, investors, manufacturers, energy developers and financial institutions to discuss pathways for transforming Nigeria’s power sector.
Tegbe described Nigeria’s electricity sector as a paradox, noting that despite being Africa’s largest economy and most populous nation with over 13,000 megawatts of installed generation capacity, less than half of that capacity reaches consumers reliably.
According to him, the consequences have been severe for businesses, with manufacturers spending a significant proportion of operating costs on diesel and petrol generators.
“This invisible shadow grid, consuming billions of naira yearly in imported fuel, represents a structural tax on Nigerian competitiveness that we can no longer afford to pay,” he said.
He said recent nationwide grid disturbances and collapses recorded in late 2025 and early 2026, which affected commercial centres, underscored the urgent need for comprehensive reforms, identifying the Electricity Act 2023 as the foundation of the sector’s transformation. For the first time, he said, electricity has been removed from the Exclusive Legislative List, allowing states to generate, transmit, distribute and regulate electricity within their territories.
Tegbe disclosed that about 20 states had already enacted subnational electricity laws, while 12 had either assumed or were advancing the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission (NERC). He also highlighted the approval of the National Integrated Electricity Policy (NIEP) by the Federal Executive Council (FEC) in May 2025, describing it as a comprehensive replacement for the country’s outdated 2001 electricity policy framework.
According to him, the government has intensified investment in grid infrastructure, installing 82 power transformers between 2024 and 2025, adding over 8,500MVA of transmission capacity.
He added that more than 30 transmission projects were completed within the same period, increasing the national grid’s wheeling capacity to approximately 8,700 Megawatts.
Tegbe further disclosed that a $1.16 billion grid digitalisation project is currently 69 per cent complete, with over 3,000 kilometres of fibre optic cable deployed and more than 100 substations upgraded with advanced monitoring systems.
He said the establishment of the Nigerian Independent System Operator (NISO) in 2025 would further strengthen grid management and market efficiency.
LCCI President, Leye Kupoluyi, lamented the contradiction between Nigeria’s vast energy resources and its persistent electricity deficit. He noted that Nigeria possesses approximately 37 trillion cubic feet of proven natural gas reserves and receives average solar irradiation of about 5.5 kilowatt-hours per square metre per day, among the highest globally.
Also speaking, Managing Director, Rural Electrification Agency (REA), Dr Abba Aliyu, urged stakeholders to move beyond viewing renewable energy merely as a rural electrification solution and instead position it as a driver of industrial growth and economic transformation.
(Ripples)
