INTRODUCTION
>The year 2024 marked a pivotal moment for Nigeria's Power Sector. The Sector witnessed sweeping reforms aimed at repositioning it for growth and sustainability. Notably, eight Sates took decisive steps toward decentralised electricity regulation, exercising their authority under the Electricity Act to transition to State-level oversight. In parallel, the Federal Government eliminated subsidies on Band A electricity tariffs, a move designed to attract investment and strengthen commercial viability across the value chain.
The Minister of Power, Adedayo Adelabu, reported that tariff adjustments alone generated an additional N700 million in revenue for the Sector and drove a record 70% year-on-year increase in collections compared to 2023. Yet, beneath these gains lie deeply rooted structural challenges that continue to undermine the Sector's performance, ranging from rising debt burdens and infrastructure deficits to widespread vandalism, right of way issues and persistent energy theft.
In this 2025 Power Sector Mid-Year Report, we provide key insights into the current state of the Nigerian Electricity Supply Industry ("NESI"), highlight major market and regulatory developments recorded over the past six months, and outline projections for the second half of the year.
OVERVIEW OF MARKET PERFORMANCE
Generation
Nigeria's grid-connected generation capacity continues to show signs of minimal incremental improvement despite lingering constraints. As of Q4 2024, the Nigerian Electricity Regulatory Commission ("NERC") reported that the 28 grid-connected power plants had a total installed capacity of 13,625MW, with an average available capacity of 5,296.89MW and a plant availability factor of 38.88%.
In February 2025, the Transmission Company of Nigeria ("TCN") recorded a historic peak generation of 5,543.20MW, reflecting short-term gains in output. By May 2025, although total installed capacity remained unchanged, average available generation capacity rose slightly to 5,639 MW, with an improved plant availability factor of 41%.
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