Nigeria’s power reforms offer model for strengthening global energy security — Minister

Nigeria's power sector reforms, according to Minister of Power Joseph Tegbe, could serve as a model for other developing nations striving to enhance energy security in the face of increasing geopolitical tensions and fragmentation. Speaking at the 50th edition of the Middle East Energy 2026 Leadership Summit in Dubai, Tegbe emphasized that energy security must now be evaluated based on the resilience of the entire energy system, encompassing critical mineral supply chains, electricity grids, financing, and institutions ensuring supply continuity during disruptions.

Highlighting Nigeria's substantial natural resources, Tegbe pointed out the country's proven gas reserves of over 200 trillion cubic feet and its longstanding history of supplying liquefied natural gas (LNG) to European and Asian markets. He further noted that Nigeria's Electricity Act 2023 has been a significant turning point in the nation's electricity market, dismantling the federal monopoly and paving the way for 37 emerging electricity markets across the country.

Tegbe emphasized that Nigeria's power reforms are fundamentally about establishing credibility through regulatory certainty, contract sanctity, and bankable offtake agreements. He stressed that Africa should no longer be considered peripheral to the global energy discourse. With approximately 600 million Africans still lacking access to electricity, he argued that the continent's natural resources, solar potential, youthful population, and rapidly growing energy demand will significantly impact global energy markets.

Tegbe called for international investors and development partners to move beyond merely extracting Africa's raw resources and instead support local processing, manufacturing, skills development, and long-term financing.

Nigeria's power reforms, initiated by President Bola Ahmed Tinubu in June 2023, have already resulted in the activation of 16 state electricity markets, stimulating competition and innovation within the industry. However, PwC warns that regulatory uncertainty and overlapping mandates between federal and state authorities remain a significant risk to Nigeria's electricity reforms.

To address this, the Nigerian Electricity Regulatory Commission (NERC) recently launched a new forum to enhance coordination and effectiveness in electricity regulation across Nigeria. Additionally, the Federal Government announced plans to share electricity subsidy costs with other tiers of government, such as state and local governments, starting in 2026.