The Federal Government has announced plans to increase Nigeria’s electricity grid capacity by an additional 4,000 megawatts by the end of 2026 as part of a renewed strategy under the Presidential Power Initiative.
This was revealed in a statement issued on Sunday by Bolaji Tunji, Special Adviser on Strategic Communications and Media Relations to the Minister of Power, Adebayo Adelabu.
Nigeria’s current grid capacity stands at 4,919MW.
According to the statement, the administration of President Bola Tinubu has breathed new life into the PPI through the execution of an acceleration agreement with Siemens Energy, aimed at fast-tracking the programme and improving electricity supply nationwide.
Tunji said the revised structure of the PPI allows Siemens to focus solely on modernising the transmission subsector using a turnkey approach, while other capable engineering, procurement, and construction firms will handle the distribution aspect.
“While acknowledging efforts of past administrations on the PPI, the Minister said some of the key milestones under the present administration apart from the execution of an Acceleration Agreement with Siemens Energy to fast-track the implementation of the PPI, include the approval of a new technical direction for the PPI, ensuring Siemens Energy focuses solely on upgrading and modernizing the transmission subsector through a Turnkey approach.
“The president also approved that the distribution scope be delivered by other reputable Engineering Procurement and Construction (EPC) Companies with the requisite technical, financial, and financing capacity.
“The strategic decisions aim to increase grid capacity by an additional 4,000MW by the end of 2026, with an aspirational target of an additional 2,000MW, as directed by the economic management team in 2024,” it added.
While the PPI was initially conceived in 2018 under a bilateral agreement between Nigeria and Germany, Tunji noted that significant progress has only been made since the Tinubu administration took office in May 2023.
“There is no way the minister’s statement that no significant progress on the project was made until the present administration was inaugurated, can be faulted when the major milestones between 2023 till date are considered.
“This administration, under the leadership of President Tinubu, has demonstrated an unwavering commitment to the PPI, recognising its critical importance to opening up the economy and galvanising national development.
“To ensure the expeditious delivery of improved power supply to industrial clusters, households, and businesses, President Tinubu mandated the signing of an Acceleration Agreement.
“This commitment has translated into tangible results. Under the present administration, strengthened programme governance has expedited contract and financing approvals, leading to faster project implementation,” he added.
Among the visible results is the successful delivery of 10 power transformers and 10 mobile substations in October 2023 under the PPI pilot phase.
Additionally, the Federal Government, through the FGN Power Company, has implemented multiple transmission projects that have added over 700MW in wheeling capacity across industries, educational institutions, and residential areas.
Tunji further revealed that Nigeria recorded its highest-ever power generation of 6,003MW on March 4, 2025, with a daily energy delivery of 128,370.75MWh.
On the same day, 5,801.44MW was successfully evacuated.
He also disclosed that over 70 transformers were added to the national grid between 2024 and 2025 via the Transmission Company of Nigeria’s internally generated revenue and support from the World Bank and African Development Bank, contributing over 12,000 megavolt-amperes (MVA) to grid capacity.
Despite these achievements, the minister acknowledged ongoing challenges in the power sector.
These include a N4 trillion backlog in unpaid subsidies, an unsustainable tariff structure, rampant vandalism, electricity theft, poor consumer compliance with billing, inadequate investment particularly in distribution infrastructure and resistance to the commercialisation of electricity.
“However, the minister is the first to acknowledge challenges in the sector. Such challenges include the N4 trillion in outstanding subsidies and unsustainable tariff regimes, rampant vandalism, electricity theft, and chronic bill non-payment, poor investment by some operators, especially in the distribution infrastructure and resistance to the sector commercialisation by the electricity consumers, which is impacting on the sector’s liquidity,” Tunji said.
He concluded that despite these hurdles, the ministry has made notable strides in reforming the sector, expanding access, and upgrading infrastructure.
He noted that a solid foundation is now in place for the long-term transformation of the power sector, anchored on inclusive, sustainable, and results-driven development.
