Tegbe pledges end to power sector liquidity crisis by end of 2026

The Minister of Power, Mr. Joseph Tegbe, has pledged that the federal government will resolve the liquidity crises crippling the nation’s power sector before the end of 2026, marking a decisive timeline to fix decades of systemic decay.

Speaking at the Renewable energy outlook conference organized by the Lagos Chamber of Commerce and Industry (LCCI), themed “Powering Nigeria’s Energy Transition: Power Sector Transformation for Industrial Competitiveness,” in Lagos, Tegbe emphasized that while the destruction of the past 50 years cannot be reversed in three months, the current administration is executing calibrated, systemic reforms to stabilize the national grid and secure long-term commercial viability.

The Minister maintained that the structural challenges plaguing Nigeria’s electricity supply are 80 percent governance and commercial, with technical issues accounting for just 20 percent of the deficit.

To address this root cause, he noted that the administration has democratized energy governance through the landmark Electricity Act, anchoring its transformation on a legislative foundation that grants states the constitutional authority to generate, transmit, and regulate their own power.

Tegbe revealed that over 20 states have already enacted their own electricity laws and are actively transitioning regulatory oversight, a shift he hailed as a triumph for genuine economic federalism.

He also noted the Ministry through the Transmission Company of Nigeria (TCN) is upgrading the national transmission infrastructure to handle up to 7,000 megawatts of power while aggressively exploring highlighting and isolating options for the grid to prevent localized faults from triggering total national system collapses.

Complementing these infrastructure upgrades is the National Integrated Electricity Policy, a comprehensive blueprint designed to bridge the infrastructure deficit and integrate massive renewable energy capacity.

He noted that the government has already overseen the deployment of over 3,000 lines, completed more than 100 substations with advanced technologies, and added over 8,500 megawatts in capacity.

Addressing the economic realities of the transition, Tegbe acknowledged user dissatisfaction over current pricing structures, noting that while Band A and Band B customers face steep costs, the ultimate objective is to transition the country into a market where citizens pay for electricity that is both reliable and commercially viable.

He issued a notice to industries declaring that the era of diesel generators serving as the primary source of industrial and domestic power is drawing to a close.

In its place, the government is rolling out embedded generation models, shifting from isolated household solar panels to community-based mini-grids, with plans to deploy solar-powered systems across all public hospitals, educational institutions, and densely populated communities.

This rapid transition to solar energy aligns with the Nigeria Energy Transition Plan, which serves as the nation’s sovereign commitment to achieving net-zero emissions.

Tegbe further stressed that the transition is fundamentally an economic imperative rather than a strictly environmental one, projecting that the framework will yield over 21 billion dollars in fuel savings for local businesses and small and medium-sized enterprises (SMEs).

He also revealed that Nigeria and South Africa are leading solar adoption on the continent, with solar energy positioned to become the dominant force in the country’s emerging energy landscape.

In his remarks, the President of the LCCI, Engr. Leye Kupoluyi, affirmed that energy costs have become a crushing component of operational expenses for Nigerian businesses, severely limiting growth across all sectors.

Kupoluyi commended the Minister and the Rural Electrification Agency (REA) for their innovative, off-grid renewable solutions that are delivering accessible electricity to underserved populations, while stressing that achieving a successful transition requires massive, industrial-scale private sector investments to ensure darkness becomes a thing of the past.