FG Pushes Local Manufacturing of Power Equipment to Reduce Imports

The Federal Government has intensified efforts to reduce Nigeria’s reliance on imported electricity infrastructure by urging stronger collaboration among key power sector agencies to support local manufacturing and conserve foreign exchange.

The Minister of Power, Adebayo Adelabu, called on the Energy Commission of Nigeria and the Rural Electrification Agency to deepen cooperation through coordinated research, shared data systems, and joint planning, describing these measures as essential to achieving reforms in the electricity sector.

The directive follows growing concerns over Nigeria’s heavy dependence on imported meters, turbines, transformers, and other critical power equipment, which continues to place pressure on foreign exchange reserves and slow infrastructure expansion.

Adelabu made the call during a strategic engagement with the leadership of the Energy Commission of Nigeria in Abuja, where he emphasised that improved synergy between sector institutions would support the administration’s goal of strengthening domestic production capacity.

Despite several reform initiatives over the years, Nigeria’s power sector continues to face structural challenges, including weak infrastructure, limited local manufacturing capability, and poor data management. While access to electricity has expanded modestly, the sector remains vulnerable to currency fluctuations due to its dependence on imported components.

The minister said the current administration is determined to reverse this trend by prioritising local production of key power infrastructure. He stressed that building domestic capacity for manufacturing meters and other equipment would not only conserve foreign exchange but also support industrial growth.

According to Adelabu, effective planning in the power sector is impossible without reliable data. He described the lack of accurate data as a major obstacle and disclosed plans to establish a centralised data pool that would integrate inputs from all stakeholders across the electricity value chain, including generation and distribution companies.

He urged the Energy Commission of Nigeria to actively participate in the initiative, noting that its research mandate is critical to evidence-based decision-making. To further improve coordination, he directed that the commission be incorporated into the Power Sector Working Group, which meets quarterly to review industry developments.

While acknowledging the dominance of gas-fired power plants in Nigeria’s electricity mix, the minister highlighted the untapped potential of hydropower, particularly small-scale projects. He noted that hundreds of small dams across the country could be harnessed to improve electricity supply if local capacity in turbine production is developed.

Responding, the Director-General of the Energy Commission of Nigeria, Mustapha Abdullahi, expressed the commission’s readiness to collaborate closely with the Ministry of Power and other agencies. He said the commission is committed to supporting the use of the power sector as a driver of economic growth through research, innovation, and strategic planning.