Abuja: For decades, Nigeria’s electricity sector represented one of the country’s greatest paradoxes. Despite vast gas reserves and enormous generation potential, millions of households and businesses grappled with inadequate supply, estimated billing, mounting sector debts, and chronic underinvestment. Today, however, emerging indicators suggest that reforms introduced by President Bola Tinubu’s administration are beginning to change the narrative.
According to News Agency of Nigeria, at the heart of the administration’s strategy are the Presidential Power Sector Debt Reduction Programme (PPSDRP) and the Presidential Metering Initiative (PMI). These interventions were designed to restore financial viability, improve consumer confidence, and create the conditions for sustainable investment across the electricity value chain. The significance of these reforms was highlighted by Mrs. Olu Verheijen, Special Adviser to the President on Oil and Gas, during the Nigerian-British Chamber of Commerce Energy Day 2026 in Lagos.
Verheijen explained that the administration’s overarching objective is to move Nigeria’s energy sector ‘from promise to performance,’ stressing that energy reform remains inseparable from economic reform. She noted that reliable energy lowers production costs, supports industrial growth, strengthens the Naira, and creates jobs.
One of the administration’s most notable achievements has been addressing the longstanding liquidity crisis that crippled the gas-to-power value chain. For years, generation companies and gas suppliers accumulated huge unpaid obligations, limiting their ability to invest in infrastructure and expand capacity. To tackle this challenge, the Federal Executive Council approved the PPSDRP, a bond programme valued at up to N4 trillion to settle verified arrears owed to generation and gas companies.
The programme recorded a major milestone in the fourth quarter of 2025 with the successful issuance of a N501 billion Series 1 bond, which was oversubscribed, demonstrating strong investor confidence in the administration’s reform agenda and future prospects of the power sector. Momentum continued in the first quarter of 2026 when payments of verified claims to GenCos and GasCos commenced, reassuring investors and operators that the government was committed to honouring outstanding obligations and restoring credibility to the sector.
By the second quarter of 2026, another major breakthrough had been achieved – Nigeria’s generation companies signed full and final settlement agreements worth approximately N2.28 trillion under the debt reduction programme, which industry stakeholders described as one of the most significant debt resolution efforts ever undertaken in the nation’s electricity industry.
Alongside debt resolution, the administration has intensified efforts to close Nigeria’s metering gap through the Presidential Metering Initiative. The programme was established to eliminate estimated billing, improve transparency, and rebuild public confidence in the electricity billing system, with results becoming increasingly visible. According to the Nigerian Electricity Regulatory Commission (NERC), Nigeria crossed the seven million installed meters mark in January 2026 after ending 2025 with approximately 6.9 million installed meters.
The administration has also accelerated meter deployment nationwide, with more than one million meters delivered and being installed across the country since 2025. The rollout is expected to significantly reduce estimated billing while improving revenue collection and accountability. Verheijen underscored the importance of metering to electricity sector reform, noting that sustainable investment depends on transparent and efficient commercial systems.
The broader energy reforms undertaken by the administration are also creating favourable conditions for electricity sector growth. Increased gas production and improved investor confidence are strengthening the foundations needed for reliable power supply. Verheijen observed that Nigeria’s proven gas reserves now exceed 215 trillion cubic feet, while gross gas production has risen significantly since 2023.
The administration’s achievements so far suggest that foundational reforms are gradually translating into measurable outcomes. The settlement of N2.28 trillion in sector arrears, the successful bond issuance, the crossing of seven million installed meters, and the expansion of cost-reflective tariffs all point to a sector moving steadily toward greater stability. If sustained, the current momentum could finally move Nigeria’s power sector from decades of unmet potential toward reliable electricity, stronger investment, and broader economic growth.