The Federal Government has declared its intention to deepen and prioritise local content development as a strategic tool for meeting the country’s electricity needs, boosting economic growth and ensuring energy security.

Minister of Power, Adebayo Adelabu, disclosed this at the African Natural Resource and Energy Investment Summit (AFNIS 2025), where he stressed that local manufacturers would play a pivotal role in the country’s energy transition and industrial capacity expansion.

The government said yesterday in Abuja that about $556 million (approximately N849.8 billion) being invested key electricity infrastructure, targeting the Distribution Companies (DisCos) and Supervisory Control and Data Acquisition (SCADA) systems as well as inauguration of the Nigerian Independent System Operator (NISO) will raise power supply to 8,500 megawatts (MW) within the next 12 months.

While Nigeria is spending about $56 million on SCADA, about $500 million has been borrowed from the World Bank to improve the capacity of DisCos.

According to Adelabu, the Federal Ministry of Power’s policy thrust aligns with the conference theme, which focuses on unlocking Africa’s energy potential through local content and sustainable investments.

With Nigeria’s population now over 200 million, he said, the country’s electricity demand continues to climb sharply, requiring coordinated policy action and domestic participation.

“Meeting this demand requires a clear regulatory framework, sustained investment and local participation across the value chain. Under President Bola Tinubu’s Renewed Hope Agenda, the government is strengthening domestic capabilities to reduce import dependence and embed local skills and technology,” he added.

The minister noted that “Nigeria’s energy roadmap centres on decentralisation, digitisation and decarbonisation” to align with global trends. He cited recent reforms, including the implementation of the Electricity Act of 2023, which has enabled 11 states to assume regulatory authority over their subnational electricity markets, opening up space for new investments and healthy competition.

The National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP) are also guiding frameworks for long-term planning in the sector. Adelabu disclosed that recent tariff adjustments for Band A customers had boosted revenue by 70 per cent, generating an additional N700 billion and growing market revenue from N1 trillion in 2023 to N1.7 trillion in 2024.

Speaking on other reforms, Adelabu said: “The independent system operator was operationalised in April 2025 for efficiency and accountability. The government is driving local content through investment and execution in initiatives like the Energising Education Programme (EEP), adding 100MW of clean energy across federal universities and teaching hospitals. The DARES project targets over 17.5 million Nigerians via decentralised electrification. Through the Africa Mini-Grid Programme, $5.91 million in grants were secured across 23 projects.”

Speaking at a leadership retreat to onboard NISO’s top management in Abuja yesterday, the Director-General, Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, said although Nigeria’s installed generation capacity stood above 14,000MW, actual daily generation remained around 5,500MW.

He expressed optimism that better grid management and significant investment in transmission and distribution infrastructure would close the gap between capacity and supply.

“It is not a tall order to believe that within 12 to 18 months, we can increase supply by at least 50 per cent,” he said. “The generation capacity exists. If we strengthen grid capacity and scale up distribution infrastructure, we can achieve this.”

He added that the Federal Government had secured a $500 million loan from the World Bank to finance upgrades in the distribution network, including the provision of 3.2 million electricity meters, with an additional two to three million meters expected from a separate presidential initiative.

Having been unbundled from the Transmission Company of Nigeria (TCN), NISO bears the critical responsibility of managing the national grid with neutrality and strategic foresight.

Chairman of the NISO Board, Dr Adesegun Akin-Olugbade, emphasised the agency’s new role: “NISO is not just a new institution; it is a new idea. We are responsible for real-time grid operations, long-term system planning and coordinating electricity market development. These are central pillars for national development. When power fails, everything else struggles.”

Managing Director/CEO of NISO, Abdu Bello, said the 8,000MW target is within reach, provided the agency remains focused and secures private sector investment.