Millions of Nigerians could see improved electricity supply in the coming decades as the Federal Government targets 277 gigawatts of installed power capacity by 2060, backed by renewable energy expansion and growing private sector investment.
Speaking at the Lagos Chamber of Commerce and Industry Renewable Energy Outlook Conference 2026, Minister of Power, Joseph Tegbe, said Nigeria’s energy transition strategy is aimed at ending the country’s long-standing dependence on diesel and petrol generators while boosting industrial growth and economic competitiveness.
According to Tegbe, the government’s reform agenda is already yielding results, attracting more than $2 billion in fresh private investment into the power sector and improving investor confidence.
He said the era of diesel generators as a primary power source is gradually coming to an end, describing the country’s reliance on self-generated electricity as a costly burden on businesses and households.
Despite having over 13,000 megawatts of installed generation capacity, Nigeria currently delivers less than 5,000 megawatts reliably to more than 220 million people, highlighting the urgent need for reforms.
To strengthen the grid, the government has installed 82 transformers, completed over 30 transmission projects, and increased transmission capacity by more than 8,500MVA. A $1.16 billion grid digitalisation project is also nearing completion, with over 3,000 kilometres of fibre optic cable already deployed.
The Electricity Act 2023 has further opened the sector by allowing states to generate, transmit, distribute and regulate electricity independently, creating new opportunities for investment and innovation.
Tegbe noted that while natural gas will remain Nigeria’s transition fuel due to the country’s vast reserves, renewable energy—particularly solar power—will play a central role in meeting future electricity demand.
Managing Director of the Rural Electrification Agency, Dr. Abba Aliyu, urged stakeholders to view mini-grids and renewable energy systems as critical infrastructure capable of powering industries, hospitals, schools, markets and data centres.
He also called for greater investment in local manufacturing of solar panels, batteries, inverters and electricity meters to reduce import dependence and strengthen Nigeria’s renewable energy value chain.
Industry leaders agreed that the success of the reforms should not be measured only by megawatts generated, but by their impact on jobs, businesses, healthcare, food preservation and overall economic growth.
The reforms are expected to improve electricity access, lower energy costs, stimulate industrialization and support Nigeria’s ambition to become a leading renewable energy hub in Africa.
