Nigeria requires $10bn power investment for reliable electricity supply, says minister
By Jeffrey Agbo
The Nigerian government has announced plans to partner with the private sector to raise part of the $10 billion needed to establish a consistent and reliable electricity supply nationwide.
This initiative is part of a long-term strategy to tackle Nigeria’s persistent power supply challenges, with a projected timeline of five to 10 years.
The announcement followed a recent meeting between the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, and the Minister of Power, Adebayo Adelabu, in Abuja.
According to a statement by Ifeanyi Nwoko, Acting Head of Media and Publicity, both officials emphasised the importance of private sector participation through Public-Private Partnerships (PPPs) to bring in the necessary funding and technical expertise for Nigeria’s power sector.
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As an immediate measure to reduce grid failures, the power minister recently ordered the replacement of outdated equipment. Additional funds are expected from the 2024 Supplementary Budget and the 2025 Appropriation Bill to support this effort.
The minister underscored the importance of private investment, stating, “To achieve a 24-hour power supply across Nigeria within the next five to ten years, a minimum funding of $10bn is required. The government cannot shoulder this alone given the pressing financial needs of other critical sectors.”
He added that private sector contributions, facilitated by the ICRC, are essential for securing the necessary resources while allowing the government to retain an ownership stake through concession arrangements.