Power
Nigeria must turn energy policy into capital, say experts
Industry leaders at the Lagos Business School conference warned that resource wealth alone cannot guarantee secure power without better execution and investment.
Key points
- Speakers at the Lagos Business School Africa Energy Conference stressed the need for consistent policy implementation.
- Shell Nigeria's MD noted the country holds 37 billion barrels of oil and condensate reserves alongside over 215 trillion cubic feet of gas.
- Lagos State reported average power supply remaining below 1,000 megawatts for a population exceeding 20 million.
What happened
According to BusinessDay, sector leaders gathered in Lagos for the fourth annual Africa Energy Conference to discuss barriers holding back the country's power and petroleum sectors. Adams Ronald, managing director of Shell Nigeria Exploration and Production Company, stated that consistent application of rules matters more than designing new frameworks. He pointed to the Deep Offshore Oil and Gas Projects Incentives Agreement passed in August 2026 as a tool intended to attract up to $50 billion in capital.
Representing Lagos State, Deputy Governor Kadri Hamzat outlined local electricity challenges. He noted that despite a population above 20 million, average grid supply sits under 1,000 megawatts. Furthermore, service delivery remains weak across distribution feeders, with metering coverage lagging behind targets.
Why it matters
Nigeria relies heavily on fuel exports, which accounted for 85.9 percent of merchandise exports in 2025 according to World Bank figures, compared to a global average of 9.5 percent. However, domestic energy poverty remains an issue, with World Bank data showing national electricity use per person stood at 140.6 kilowatt-hours in 2024, far below the global average of 3,708.5 kilowatt-hours.
Speakers at the conference emphasised that unlocking reserves requires competitive fiscal terms and reliable infrastructure. Without these conditions, the country risks failing to meet industrial and commercial demand.
What comes next
Lagos State aims to scale up electricity availability immediately, targeting over 3,000 megawatts by March 2027. Planned additions rely on independent power producers, embedded generation, energy barges, and grid supply. Achieving this growth will depend on strengthening transmission networks, expanding metering, and ensuring steady gas supplies.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
