Nigeria power sector reforms urged to support economic recovery

Nigeria’s economic recovery faces challenges due to a contraction in the electricity, gas, and steam sector, which declined by 10.63 percent in the second quarter of 2026. Despite a 4.43 percent expansion in real GDP, experts from the Centre for the Promotion of Private Enterprise (CPPE) warn that the power crisis could undermine long-term growth and investment. Dr. Muda Yusuf emphasized that accelerating power sector reforms is essential to reduce business costs related to alternative energy sources and to support manufacturing, agriculture, and mining.

In a separate address at the Middle East Energy 2026 Leadership Summit in Dubai, Minister of Power Joseph Tegbe highlighted the Electricity Act 2023 as a transformative piece of legislation. The Act has ended the federal monopoly, paving the way for 37 emerging electricity markets across the country. Tegbe stated that the reform agenda under President Bola Ahmed Tinubu aims to provide the regulatory certainty necessary to attract long-term investment and strengthen energy security through resilient grids and diversified supply chains.