By Rukevwe Odeh

Nigeria’s electricity sector is entering a new phase following the appointment of Joseph Tegbe as Minister of Power by President Bola Tinubu. His emergence comes at a critical time for an industry grappling with persistent supply shortages, mounting debt, and operational inefficiencies.

Speaking shortly after taking office in Abuja, Tegbe pledged to approach the role with transparency, commitment, and accountability. He outlined plans to pursue reforms through clear targets, performance monitoring, and collaboration with key stakeholders across the power value chain.

According to the minister, consultations have already begun with major industry institutions, including the Transmission Company of Nigeria (TCN), the Niger Delta Power Holding Company (NDPHC), the Nigerian Electricity Regulatory Commission (NERC), and the Rural Electrification Agency (REA). He expressed confidence that these engagements would help drive meaningful improvements in the sector.

Despite Nigeria’s installed electricity generation capacity of more than 13,600 megawatts, actual output remains significantly below demand. Regulatory data shows that average available generation in 2025 stood at approximately 4,853.69MW, representing less than 40 percent of installed capacity.

Industry experts attribute the gap to several longstanding issues, including inadequate gas supply, aging infrastructure, maintenance challenges, and limitations within the transmission network. As a result, a large portion of the country’s generation assets remains underutilized.

Tegbe highlighted a few recent gains, including the return of the 450MW Alaoji Open Cycle Power Plant, which had been inactive for three years. The facility is expected to contribute up to 375MW to the national grid. Additional transmission projects completed in Katampe, Abuja, as well as Ayede and Abeokuta, are also expected to strengthen power delivery in strategic locations.

However, stakeholders argue that these developments address only a fraction of the industry’s broader problems. One of the most pressing concerns remains the severe liquidity crisis affecting electricity generation, transmission, and distribution companies.

Data from the Nigerian Bulk Electricity Trading Company (NBET) indicates that power generation companies invoiced N1.531 trillion between May and October 2025 but received only N547.37 billion. The resulting revenue deficit of nearly N1 trillion has placed significant pressure on operators and limited their ability to invest in maintenance and expansion.

By the end of 2025, sector-wide debt had reportedly exceeded N6 trillion, raising concerns over the long-term sustainability of the industry. Analysts have warned that without major financial interventions and structural reforms, power generation could decline further.

The minister acknowledged the financial difficulties and revealed that discussions with international development partners have produced encouraging indications of possible support. Nevertheless, experts note that external funding alone cannot resolve the fundamental issues affecting the sector.

Metering remains another major challenge. According to NERC figures, more than 72 percent of distribution companies failed to meet required metering targets as of February 2026. Consequently, millions of electricity consumers continue to receive estimated bills, a practice that has generated widespread complaints and reduced confidence in the industry.

Only Abuja, Eko, and Ikeja distribution companies reportedly met the prescribed metering standards during the period under review.

On consumer welfare, Tegbe reaffirmed support for NERC’s directive requiring compensation for Band A customers who experienced service levels below the expected standard. Observers, however, believe the effectiveness of the policy will depend largely on enforcement and the financial health of distribution companies.

The minister urged Nigerians to remain patient, noting that decades of inadequate investment, policy inconsistencies, and governance shortcomings cannot be corrected overnight. He emphasized that his administration would focus on realistic goals and transparent communication with the public.

Energy analysts maintain that deeper reforms are necessary to place the sector on a sustainable path. These may include cost-reflective electricity tariffs, targeted subsidy programs, accelerated metering deployment, and stricter compliance with market rules.

For millions of Nigerians who continue to experience unreliable electricity supply, the success of Tegbe’s tenure will ultimately be measured by visible improvements in power availability and service delivery. With national generation still hovering around 4,000MW for a population exceeding 200 million people, expectations remain high as the new minister begins the task of transforming the country’s struggling power sector.