The Federal Government has set a target of generating 70,000 megawatts (MW) of electricity by 2060, despite Nigeria currently producing less than 5,000MW from an installed generation capacity exceeding 13,000MW.

The Minister of Power, Joseph Tegbe, announced the target on Tuesday at the ongoing 13th Nigeria Energy Exhibition and Conference Leadership Summit in Lagos. He said expanding electricity infrastructure was necessary to meet growing demand driven by industrialisation, technological advancement and data centres.

Tegbe acknowledged the significant gap between Nigeria’s current electricity supply and its long-term ambition, stressing that future energy requirements must shape the country’s infrastructure development plans.

The government’s strategy will focus on grid stabilisation, transmission expansion, hydropower development and improved commercial performance across the electricity value chain.

As part of efforts to strengthen transmission infrastructure, the minister identified the proposed East-West Grid programme as a key initiative to improve electricity supply along major economic corridors.

He also revealed that 21 dams had been identified along the Sokoto-Badagry Expressway for potential hydropower development.

Tegbe said the government would pursue the Mambilla hydropower project alongside smaller-scale schemes designed to support agricultural corridors, processing clusters and local communities.

However, he identified grid stability, liquidity constraints and the effective utilisation of existing infrastructure as immediate priorities. According to him, weaknesses within the electricity sector must be addressed before substantial resources are committed to further expansion.

The minister disclosed that technical audits of power infrastructure across the country had commenced to identify facilities requiring urgent intervention and investment.

He explained that the exercise would determine whether generation, transmission or distribution infrastructure needed priority attention, enabling the government to channel resources towards areas with the greatest requirements.

Tegbe added that the Federal Government would collaborate with state governments, regulators and private operators to coordinate electricity projects and improve supply across the three corridors.

On electricity metering, the minister reiterated the government’s plan to deploy seven million meters nationwide within the next three years. He described effective metering as essential to revenue collection and the financial sustainability of the power sector.

Addressing the industry’s financial challenges, Tegbe disclosed that the Federal Government had paid N1.23 trillion out of the N3.3 trillion in legacy debt owed to power generation companies.

He said the government was also considering structured settlements, payment assurance mechanisms and legally permissible net-off arrangements to resolve outstanding obligations and prevent further debt accumulation.

The Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, emphasised that reliable and affordable electricity was crucial to achieving the state’s economic ambitions.

Ogunleye said the Lagos State Electricity Law, enacted in 2024, established a framework for a more competitive electricity market, stronger regulation and increased private-sector investment.

In his opening address, the Exhibition Director, Energy Portfolio at inD, Ade Yesufu, said Nigeria possessed the natural resources and growing investor interest needed to improve electricity supply.

He cited the country’s gas reserves and the emergence of a new generation of developers and innovators as important assets for advancing the sector.

Yesufu said the summit’s theme, ‘Strengthening Power Delivery through Execution, Coordination, and Performance,’ underscored the need to translate electricity sector reforms into tangible improvements in power supply.

Source: The Guardian