As part of President Bola Tinubu’s renewed hope to energise the economy, Adebayo Adelabu, according to a statement released in Abuja to the News Agency of Nigeria (NAN), said that the feat was accomplished through revolutionary measures taken by the Ministry of Power.

He attributed the power sector’s accomplishments to the drastic and audacious measures his administration took, citing President Bola Tinubu’s persistent support for a steady and reliable power supply as a way to usher in a breakthrough in industrialisation.

One of the ministry’s noteworthy accomplishments in 2023 was the production of over 5,500 megawatts of electricity, according to Adebayo Adelabu. By the end of 2024, the ministry hopes to improve even more.

“Most developed nations achieved reliable, functional, and affordable electricity as a fundamental step. This is crucial for industries, businesses, institutions, and households. That’s why we must prioritise this for Nigeria to drive economic growth and industrial development,” Adebayo Adelabu said, as reported by Zawya.

“President Bola Tinubu emphasised this in his New Year’s speech on January 1, stressing the need for stable electricity to power critical sectors. This is the only way to achieve requisite economic growth and industrial development, as none of these sectors can function without it,” he added.

Adebayo Adelabu outlined the current administration’s plan to give industries, businesses, and institutions, such as those in education and health, a steady electricity supply.

He claims that the goal of this initiative is to provide these organisations with the ability to power their infrastructure, increase their capacity, and generate more jobs.

According to him, the ministry collaborates with 11 electricity distribution companies, 27 power-generating companies, and agencies to accomplish its objectives.

Adebayo Adelabu, in August 2024, disclosed the Federal Government’s intention to formulate a plan called the “National Integrated Electricity Policy and Strategic Implementation Plan” (NIEP-SIP).

This document, according to him, is expected to transform Nigeria’s electricity industry into a resilient and efficient sector capable of driving the nation’s development agenda.

The senior official noted that “this policy is the product of extensive consultations with industry experts, key stakeholders, and development partners who have shared their insights and expertise with us.”

“The NIEP-SIP is a comprehensive document that outlines policy interventions across the entire value chain from generation and transmission to distribution and off-grid segments of the sector required for the transformation of Nigeria’s electricity sector to a sector that is resilient, efficient, and capable of driving our national development agenda,” Adebayo Adelabu remarked.

“The NIEP-SIP places a strong emphasis on achieving improved sector liquidity, creating an enabling environment for investment to thrive, integrating renewable energy sources, enhancing grid reliability, ensuring equitable access to electricity for all Nigerians particularly those in underserved communities, improving local content and capacity across the value chain, and gender mainstreaming in the sector”, he added.

Adebayo Adelabu also assured the stakeholders that the ministry was committed to transparency, accountability, and inclusivity at every stage of the process, as the policy’s success would require the continued collaboration of all stakeholders.

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During the opening plenary of the Special World Economic Forum in Riyadh, Saudi Arabia, he stated that while most citizens were expected to be affected by the action, the government had also taken steps to lessen the hardship.

“Together, I know it is not easy for Nigeria. We are immensely consistent with the belief that economic collaboration and inclusiveness are necessary to gain stability in the rest of the world,” Bola Tinubu said, in response to a question, as reported by Zawya.

“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt and to reset the economy and the pathway to growth. It was going to be difficult, but the hallmark of leadership is making difficult decisions. At this time, it ought to be taken decisively. That was necessary for the country. Yes, there have been drawbacks. Yes, there was the expectation that the difficulty would be felt by a greater number of people,” he added further.

“But, of course, I believed it was their interest that was the focus of the government. It is easier to manage and explain the difficulties. But along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country. We shared the pain across the board. We cannot but include those who are very vulnerable,” Bola Tinubu noted.

President Bola Tinubu expressed his happiness over Nigeria’s youthful population, which he believes is full of energy and determined to use technology and education to take control of their own destiny.

He emphasised that the government is committed to staying focused on its current course and stated that it has been able to show transparency in the management of the country’s affairs.

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In a letter to clients, Fitch Ratings stated that the pressure on the naira has reversed the initial narrowing that followed the naira’s devaluation due to limited FX availability and strong demand in the underground market.

“There has been a renewed divergence between the parallel market and official exchange rates since August due to the limited supply of FC (foreign currency), reversing some of the narrowing at June’s devaluation,” the rating agency stated.

According to the assessment by three leading analysts, “This raises the possibility of a further devaluation and highlights the difficulties in sustaining exchange-rate liberalization.”

President Bola Tinubu of Nigeria abolished gasoline subsidies and restrictions on foreign exchange, which led to a 40% decline in the value of the naira versus the dollar and the highest inflation in 18 years.

The official and black market rates temporarily aligned as a result of Bola Tinubu’s decision; however, this alignment was fleeting.

The gap increased as a result of buyers turning to the parallel market due to the central bank’s limited availability of foreign currency.

In 2023, the naira experienced its worst-ever performance on the illicit market, reaching 1,000 to the dollar.

Former Citibank Nigeria chairman Olayemi Cardoso was confirmed as governor of the central bank on the same day that the value of the naira fell to a record low. He promised to boost the value of the naira.

Fitch Ratings stated in its note that despite being bearish on the naira, the central bank “has instructed banks to retain their large FX gains rather than to distribute them as dividends, which will provide a cushion to absorb further currency devaluation and loan quality risks.”

In September, Fitch Ratings noted that the financial data published by the central bank for the seven-year period between 2016 and 2022 contained large gaps that prevented a trustworthy evaluation of the nation’s net reserve position.

It also agreed with Bola Tinubu’s assertion that the liberalization of the exchange rate should make it easier for the West African country to attract capital.

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