Nigeria power sector stakeholders call for market reforms and UAE investment

Stakeholders and energy experts are calling for structural reforms and increased foreign investment to stabilize Nigeria’s electricity market. During a panel discussion in Abuja organized with the German Embassy, former Power Minister Dr. Lanre Babalola emphasized that Nigeria lacks a fully functional electricity market, noting that inadequate revenue collection and poor remittances disrupt gas supply and electricity distribution.

Dr. Babalola warned that increasing generation capacity without addressing financial leakages and market inefficiencies would lead to further debt. German Ambassador Stefan Rossel highlighted Nigeria’s potential in renewable energy and hydrogen, offering Germany’s expertise in energy efficiency and infrastructure.

In a separate push for funding, experts have urged the Nigerian government to tap into United Arab Emirates (UAE) investments in Sub-Saharan Africa. Following Minister of Power Joseph Tegbe’s participation in the Middle East Energy 2026 event in Dubai, advocates suggested Nigeria could target a portion of the UAE’s $70 billion commitment to renewable and green energy projects. Advocates noted that securing even a fraction of these funds could significantly strengthen the country’s national grid and distribution networks.