ENERGY REFORMS: Tinubu’s Policies Drive ₦4trn Power Debt Resolution, Boost Oil Output, Attract Investment
Abuja, April 2026 — A series of policy briefs and infographics released by the Presidency have highlighted significant gains in Nigeria’s energy sector, pointing to major reforms under President Bola Ahmed Tinubu aimed at restoring growth, improving power supply, and attracting investment into oil and gas.
Central to the reforms is the ₦4 trillion Power Sector Bond Programme, designed to resolve legacy debts in the electricity sector. According to the data, about ₦3.48 trillion has already been negotiated as full and final settlements, covering multiple generation companies (GenCos), with additional settlements ongoing. The initiative is expected to stabilize the sector and restore investor confidence.
The reforms have also driven improvements in electricity generation, with an additional 980 megawatts (MW) added to the national grid—representing about 7% of Nigeria’s installed capacity. In parallel, the government’s Presidential Metering Initiative (PMI) is targeting the rollout of 7 million smart meters to close metering gaps, reduce energy theft, and enhance billing efficiency.
On subsidy reforms, the Presidency noted a shift toward better targeting, with improved distribution mechanisms now ensuring that support reaches more vulnerable households, reportedly increasing coverage to about 40% of low-income consumers.
In the oil and gas sector, Nigeria has emerged as a leading investment destination in Africa, attracting over $10 billion in investments over the past decade, with renewed inflows recorded in recent years. Policy directives, including executive orders and fiscal incentives, have encouraged international oil companies (IOCs) to deepen investments in both upstream and gas infrastructure.
Production figures also show a gradual recovery trend, reversing earlier declines. Government projections indicate sustained increases in crude oil output through 2030, driven by improved security measures, regulatory reforms, and renewed investor confidence.
The reforms extend to gas utilization, with expanded domestic supply and export capacity, as well as renewed focus on industrialization through energy access. Officials say the goal is to position Nigeria as a regional energy hub while reducing reliance on imports and boosting local production.
A broader strategy outlined by the administration focuses on five pillars: stabilize, expand, protect, perform, and industrialize. These include clearing sector debts, improving infrastructure, protecting energy assets, enhancing operational efficiency, and driving industrial growth through reliable power.
In addition, digital reforms and transparency measures are being introduced to modernize the sector, including real-time monitoring systems and improved regulatory frameworks.
The Presidency maintains that these reforms align with the Renewed Hope Agenda, aimed at unlocking Nigeria’s energy potential, driving economic diversification, and ensuring long-term energy security.
Analysts note that while challenges remain—particularly in transmission infrastructure and affordability—the ongoing reforms represent one of the most comprehensive overhauls of Nigeria’s energy sector in recent years.
