The Federal Government is considering measures to protect revenue from new electricity supply and ensure timely payments to gas suppliers and power generators as part of efforts to address liquidity challenges in the power sector.
The Special Adviser to the President on Power, Dr Rilwan Babalola, disclosed this at the second Lagos Energy Summit 2026, held at the Landmark Event Centre, Lagos.
Babalola, who was represented by a member of the Presidential Task Force on Power Sector Reset and Restoration, Uzoma Achinanya, said the proposed measures include revenue ring-fencing and credit enhancement to protect investments in electricity generation.
He said revenue from new electricity supply should be channelled towards meeting contractual obligations across the power value chain, adding that the government was proposing bilateral contracts backed by escrow accounts, payment waterfalls and transparent revenue collection.
Babalola said government-backed credit support would help attract new investments where market participants could not independently bear the financial risks.
He added that such support should be recovered from market revenue rather than become a permanent burden on public funds.
The Minister of Power, Joseph Tegbe, said the Federal Government had developed a four-pronged roadmap covering grid stabilisation, sector liquidity and sustainability, asset optimisation, and grid expansion and enhancement.
Tegbe identified the Lagos-Ogun, Benin-Enugu-Port Harcourt and Abuja-Kaduna-Kano corridors as priority areas under a corridor-based approach to align electricity generation, transmission and distribution with demand.
He said the Lagos-Ogun corridor and Abuja franchise area, which account for more than 50 per cent of national electricity demand, would serve as pilot locations for the proposed 24-hour energy zones.
The minister also disclosed that the replacement of the 100 MVA transformer at Alausa, installation of two 60 MVA transformers at Lekki, and upgrades at Apapa and Ijora had strengthened key sections of the Lagos electricity network.
He added that several generating units affected by recent outages had returned to service and the vandalised Egbin-Benin transmission line had been repaired.
Tegbe said a ministerial working group was also finalising models to guide coordination between state and federal institutions under the Electricity Act 2023.
The Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the state’s estimated electricity demand had reached 12,000 megawatts, while supply from the national grid remained below 1,000 megawatts.
