While the Electricity Act 2023 provides a roadmap for market decentralisation, the gap between policy and the reality of the national grid remains vast. The sector continues to struggle with persistent gas shortages for generation, a metering gap of more than 40%, and substantial challenges within transmission networks.

Technical competence must lead ministerial search

To address these hurdles, experts argue that the appointment of the next minister must be driven by technical expertise rather than political patronage. Adetayo Adegbemle, PowerUpNigeria convener, stated that the appointment must be devoid of political interference.

Adegbemle explained that the incoming minister must grasp the sector’s complexities and possess the political mandate to pivot its fortunes. He argued that the era of making political appointments and expecting quick delivery of results should end.

”Proper interviews and presentations on the challenges facing the sector should be conducted,” Adegbemle said. “The best candidate should be granted the political backing to turn things around. National interest must be the primary basis for appointments and policy formation.”

Addressing the metering crisis

Adegbemle noted that while market liquidity remains a persistent challenge, policymakers often overlook underlying causes. He stressed that the sector cannot achieve meaningful growth until the pervasive Issue of metering is comprehensively addressed.

Data from December 2025 shows Nigeria’s metering rate stood at 57.27%. Only 6.9-million out of 12.1-million active electricity customers were metered. Adegbemle argued that unless this is resolved, growth will remain stunted across generation, transmission, and distribution.

He emphasised that developing local capacity should extend to transformer production and maintenance. Adegbemle advocated for a local metering ecosystem to deepen manufacturing capacity, remove foreign exchange exposure, and create employment.

Tackling gas supply bottlenecks

Ayodele Oni, Bloomfield Law Practice partner, stated that gas shortages must be addressed urgently. He explained that although Nigeria holds significant natural gas reserves, thermal power plants are routinely starved of fuel.

Oni described this as a policy failure. He noted that generation will remain below installed capacity until gas supply challenges are resolved. The new minister must forge an enforceable working relationship with the Ministry of Petroleum.

”Incentivising domestic gas utilisation over exports is a national energy security imperative,” Oni stated. He further noted that the Transmission Company of Nigeria remains a structural weak point that undermines every megawatt generated.

Fixing insolvent distribution networks

Regarding distribution companies (DisCos), Oni observed that many are currently insolvent. Their lack of commercial viability prevents them from securing investment. He argued that the new minister must drive a genuine recapitalisation process.

Oni also addressed the metering crisis, noting that millions of Nigerians still face estimated billing. This practice breeds arbitrary charges, fuels energy theft, and drains the revenue DisCos need to survive. He called for hard targets and public accountability for the Meter Asset Provider programme.

On tariffs, Oni acknowledged that the incoming minister inherits the difficult conversation of cost-reflective pricing. While economically necessary, he warned it is politically explosive without a credible social safety net.

Navigating the structural debate

”The answer is not to abandon cost-reflective tariffs, but to pair them with targeted subsidies for low-income households,” Oni said. He suggested that a lifeline tariff tier could protect the poor while allowing the sector to breathe financially.

Oni also supported the suggestion of a Coordinating Minister for Energy. He explained that the current siloed arrangement—where power, gas, and water operate in separate bubbles—contributes to the sector’s dysfunction.

The new minister must prioritise the full implementation of the Electricity Act 2023. This legislation empowers state governments to become genuine participants in electricity supply. Oni concluded that the culture of unaccountable performance must end, with supply and revenue data made public. (BusinessDay)

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