Education
NAEC conference: Govt urges investors to revive existing power plants – EnviroNews
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The Federal Government has urged investors in Nigeria’s power sector to prioritise the rehabilitation and recovery of existing generation assets rather than focusing solely on building new power plants.
The government said improving plant operations and maintenance, securing reliable gas supply and resolving transmission and evacuation constraints could unlock dependable electricity from investments already made in the sector.
The Minister of Power, Chief Joseph Olasunkanmi Tegbe, stated this in a speech delivered on his behalf by the ministry’s Director, Information and Press, Mr. Clement Ezeorah, at the 2026 Energy Conference of the Association of Energy Correspondents of Nigeria (NAEC).
Tegbe said the opportunity in Nigeria’s power sector extended beyond constructing additional generation capacity, stressing that existing plants could deliver more electricity if their underlying constraints were addressed.
“The first is recovering dependable output from existing generation assets. Plant rehabilitation, efficient operations and maintenance, reliable gas deliveries and adequate evacuation can convert investment already made into dependable electricity supply,” he said.
He said proposed interventions should first identify the actual constraint affecting a power plant before additional capacity is introduced.
“Every proposed intervention should be tested against the binding constraint, whether plant condition, transmission limitations, gas supply, collections or payment,” he said.
According to him, adding generation capacity where the real constraint lies elsewhere could tie up capital without improving electricity supply to customers.
“Adding capacity where the constraint lies elsewhere will tie up capital without improving the customer experience,” he said.
The minister also identified industrial estates, agro-processing centres and commercial clusters as opportunities for investors to aggregate electricity demand, secure credible offtake and develop dedicated generation and supply arrangements within the regulatory framework.
He said this could provide a commercial foundation for gas producers and power developers to structure integrated gas-to-power projects around industrial users.
On distribution, the minister called for investment in feeder rehabilitation, substation transformers, metering and digital revenue systems, saying these could improve electricity delivery and payment while helping operators distinguish technical losses from collection failures.
He also identified opportunities in equipment manufacturing, network reinforcement, distributed energy, mini-grids, commercial solar, storage and hybrid systems, particularly for communities and businesses poorly served by existing infrastructure.
Tegbe said productive uses of electricity, including irrigation, refrigeration and manufacturing, could also help create sustainable demand and improve the commercial viability of power investments.
He urged investors considering asset acquisition or expansion to look beyond returns from individual facilities and consider the wider economic value that reliable electricity could create.
“Reliable power enables the manufacturing, logistics and services that expand the economy around your investment,” he said.
The minister said the Federal Government would continue to pursue sector reforms, partnerships and investments aimed at improving electricity supply, while committing to clear responsibilities, measurable service outcomes and transparent communication.
“Let the deliberations in this hall lead to practical projects, dependable gas deliveries and electricity that customers can count on,” he said.
