Federal Government Woos Investors for Power Reforms Next Phase, Targets Metering, Gas Supply

The federal government has opened its doors to investors in the next phase of Nigeria’s power sector reform, naming faster meter deployment and better gas supply as its immediate priorities.

Speaking at the NAEC Energy Conference 2026 in Lagos, the Minister of Power, Joseph Tegbe, said an energy asset delivers value only when it supplies useful power to a paying customer.

Tegbe who was represented by the ministry’s acting director of Press, Clement Ezeorah, at the conference, themed “Access to Assets: Empowering Players and Driving Growth,” warned that investors and policymakers should test every proposed intervention against the real bottleneck, whether fuel, plant condition, transmission, distribution or payment.

Adding capacity where the problem lies elsewhere, he said, “will tie up capital without improving the customer’s experience.”

He described a two-tier market: a federal market covering interstate and international trade and the national transmission system, and state-regulated markets under the Electricity Act 2023. Large grid-connected plants operate alongside embedded generation, dedicated supply to eligible customers, captive power and mini-grids.

For investors, the ninister identified four entry points: restoring dependable output from existing plants through rehabilitation and reliable gas supply; serving industrial estates, ports and agro-processing clusters with credible offtake; modernising distribution through feeders, transformers, substations and meters; and expanding distributed energy for irrigation, refrigeration and small manufacturing.

He also invited gas producers to partner with developers and industrial users on integrated gas-to-power projects.

Prospective asset buyers, he said, should look beyond the return on a single field or facility to the wider economic activity that stable power supports in manufacturing, logistics and services. The Ministry, he added, will pursue partnerships with clear responsibilities, realistic milestones and measurable service outcomes.

On a panel at the conference, the minister’s representative said government will enforce accountability by tracking gas into generation, electricity through the grid and payments through the market, with the aim of cutting Aggregate Technical, Commercial and Collection (ATC&C) losses.

He disclosed that about 350,000 meters were rolled out in the last three months, which will allow consumers to see their actual consumption rather than receive estimated bills.

He acknowledged that collection efficiency and liquidity remain problems in distribution, with some legacy debts dating back to the 2013 privatisation, and said government is working to resolve them. A performance dashboard is also being introduced so stakeholders can assess service delivery.

The representative added that embedded and decentralised generation should complement the national grid, not replace it, since Nigeria will still need a functional interconnected grid as demand grows.

He identified vandalism as a drag on expansion, saying funds that could extend transmission lines are being used to replace damaged equipment. A public advocacy campaign is under way, he said, to help communities understand that damage to infrastructure ultimately cuts their own supply.