- Nigerian government seeks $10 billion in private sector investment over the next 5-10 years to achieve 24-hour electricity supply.
- Adebayo Adelabu, Minister of Power, stresses that government alone cannot fix the sector’s challenges, emphasizing the need for private partnerships.
The Nigerian government has revealed that it will require an estimated $10 billion in investment over the next five to ten years to achieve the goal of providing 24-hour electricity across the country.
This was disclosed by the Minister of Power, Adebayo Adelabu, during a visit from the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Ewalefoh, in Abuja on Wednesday, November 14, 2024.
Adelabu emphasised that the Nigerian government alone cannot address the deep-rooted challenges plaguing the country’s power sector. These challenges include frequent grid collapses, rising electricity costs, a significant metering gap, and limited access to power in many areas. He stressed that achieving a stable and reliable electricity supply requires a collaborative effort with the private sector, which will be pivotal in funding the sector’s revitalisation.
“Government cannot do it alone; this is why we need to seek organised private sector investment while still retaining government interest and ownership,” Adelabu stated. He noted that strategic partnerships with the private sector will be essential to address Nigeria’s power sector deficiencies and bring about long-term improvements.
Dr. Jobson Ewalefoh also underscored the importance of collaboration and proper planning in transforming the power sector. “Revamping the power sector is a complex process that requires careful planning, significant investments, and time,” Ewalefoh remarked.
He further highlighted that leveraging private sector financing will be crucial, as the government cannot shoulder the entire financial burden of the sector’s transformation. The ICRC oversees public-private partnerships in Nigeria and has a critical role in regulating and facilitating these investments.
The Nigerian power sector has long struggled with inefficiencies, underinvestment, and infrastructure decay. These issues have resulted in an unreliable power supply, with frequent outages affecting businesses and households across the country. To address this, the government is now turning to private-sector partnerships to inject much-needed capital and expertise into the sector.
In recent years, the government has made some efforts to attract foreign and domestic investors to the energy sector, including privatising parts of the electricity distribution and generation companies. However, experts warn that substantial additional investments and structural reforms are required to ensure reliable and affordable electricity for all Nigerians.
With the $10 billion investment goal, Nigeria aims to overhaul its power infrastructure and create a more sustainable and efficient energy sector. This is seen as a critical step toward achieving economic growth and improving the living standards of millions of Nigerians without reliable electricity access.