Nigeria’s Electricity Market Evolving Across Interconnected National Systems- Minister

The Minister of Power, Joseph Tegbe, has said that Nigeria’s electricity market was evolving across interconnected national systems and state level markets, creating opportunities for different categories of investors and operators to participate in the sector.
This transformation he said therefore requires stronger investment and structural reforms across Nigeria’s electricity market to improve power supply and unlock wider economic growth.

Tegbe, made the call at the NAEC Energy Conference 2026 held at Eko Hotel on Thursday, during which he stressed the need to match different technologies and commercial models with the varying electricity needs of consumers.

Represented by the Acting Director, Press, Federal Ministry of Power, Clement Ezeorah, Tegbe said the country’s power transition requires coordinated efforts involving government, private investors and other industry stakeholders while maintaining an effective national electricity system.

The minister said a rural agricultural cluster, an urban manufacturing company and a major industrial consumer should not necessarily depend on the same electricity supply model, stressing that different customer needs require different solutions.

He noted that improving electricity supply goes beyond constructing new power plants, saying greater attention must also be given to existing generation capacity, transmission, distribution, gas supply, maintenance and payment systems.

Tegbe said efficient operations and maintenance, reliable gas deliveries and adequate infrastructure could help convert investments already made in the power sector into actual electricity delivered to consumers.

He warned that additional capital investment would have limited impact if the underlying constraints affecting generation, transmission, distribution and payment were not properly addressed.

The minister also identified industrial estates, agro-processing centres, commercial clusters and other organised customer groups as potential drivers of improved electricity supply through aggregated demand and dedicated generation arrangements.

He said gas producers could partner with developers, distributors and industrial users to develop integrated gas-to-power projects, creating a stronger link between Nigeria’s gas resources and electricity generation.

On distribution, Tegbe called for the modernisation of feeders and substations, saying improved distribution systems could increase electricity delivery, strengthen revenue collection and help distinguish technical losses from theft and other collection challenges.

He further highlighted the potential of mini-grids, commercial solar, energy storage and hybrid systems to provide electricity to communities and businesses poorly served by existing infrastructure.

According to him, productive uses of electricity, including irrigation, refrigeration and manufacturing, could also create sustainable demand while helping communities and businesses derive greater economic value from power investments.

Tegbe said the government’s priority was to translate investment opportunities and sector reforms into dependable electricity services, stressing that reliable power would support manufacturing, logistics and other economic activities.

He urged prospective investors to view Nigeria’s domestic electricity market as a source of long-term value, noting that the broader impact of energy investment should be measured by the additional economic productivity it can unlock.

The minister said public officials had a responsibility to ensure that Nigerians remained properly informed about reforms and developments in the power sector as the country continues its transition.