7,000MW possible with tariff review says Adelabu on new power generation peak

Adebayo Adelabu, the minister of power, says when electricity tariffs are regularised, power generation will increase to 7,000 megawatts (MW).

On February 28, Adelabu said electricity consumers on Band B are not paying enough, signalling a potential hike in tariff for the category.

The minister’s latest comments on tariffs after the Transmission Company of Nigeria (TCN) said Nigeria’s power generation reached a new peak of 5,801.8 MW on March 4 — up from 5,713MW announced on the same day.

According to a statement on Wednesday by Bolaji Tunji, the minister’s media aide, the landmark record signifies that if there was electricity demand from the distribution companies (DisCos), generating companies would have the capacity to increase power generation to over 6,000MW.

“The record peak generation of 5,801.84 MW achieved on Tuesday, March 4, 2025 compared to a previous peak of 5,801.60MW achieved in March 2021 is also quite critical as it shows the capacity of generated energy that was transmitted through the transmission grid,” the statement reads.

“This actually indicates an increase of commercially viable demand in the downstream.

“The results seen so far has been due to a partial implementation of the reforms in the sector, and based on this trajectory we will see further improvements in the sector.”

‘7000MW POSSIBLE WITH TARIFF REVIEW’

Commenting on the milestone, Adelabu lauded the recent achievement in power generation.

He said the tariff review, which has ensured liquidity in the sector, is one of the key factors contributing to the recent achievements.

According to Adelabu, the regularisation of tariffs would play a critical role in unlocking the sector’s full potential and driving further improvements in power generation and distribution.

“To sustain these improvements, the government would have to pay down on the tariff shortfalls of N1.94 trillion for 2024 and legacy debts of N2 trillion to the GENCOs,” the minister was quoted as saying.

“It would be important to continue the tariff reforms to ensure consumers start to pay for the energy consumed.

“By the time the tariffs are fully regularized, we will be moving closer to 7,000MW of available generation capacity.

“This will mark another significant milestone in our journey towards a stable, reliable, and efficient power sector that meets the needs of all Nigerians.”

The minister also called for continued support and collaboration from all stakeholders, including state governments, private sector players, and the general public.

He stressed the importance of collective efforts in sustaining the momentum and ensuring that the gains made in the sector are maintained and also built upon.

“We recognize that there is still much work to be done, and we cannot afford to rest on our laurels,” he said.

“The support and cooperation of all stakeholders are critical to sustaining these achievements and driving further progress in the sector.”

With this, he said a power sector that serves as a catalyst for Nigeria’s economic growth and development can be built.