The Nigerian Federal Government announced plans to collaborate with the private sector to raise part of the $10 billion needed to secure a reliable, 24-hour electricity supply nationwide.
This investment, projected over five to ten years, is part of a broader initiative to tackle Nigeria’s longstanding power supply issues.
The plans were discussed during a meeting between the Minister of Power, Adebayo Adelabu, and the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, in Abuja.
According to a statement from Ifeanyi Nwoko, Acting Head of Media and Publicity, both officials agreed on the necessity of Public-Private Partnerships (PPPs) to bring in co-financing and technical expertise to support power infrastructure upgrades.
Minister Adelabu outlined the financial scope required, noting, “To achieve a 24-hour power supply across Nigeria within the next five to ten years, a minimum funding of $10 billion is required.
The government cannot shoulder this alone given the pressing financial needs of other critical sectors.”
He highlighted that private sector involvement would be essential to fund and manage power projects effectively, with PPPs providing an optimal model to attract investment while retaining government ownership.
To address frequent grid collapses, the minister recently ordered the replacement of aging infrastructure and identified additional funding needs in the upcoming 2024 Supplementary Budget and 2025 Appropriation Bill.
Dr. Ewalefoh confirmed that the ICRC, through regulatory processes, would facilitate private sector contributions toward the $10 billion target, boosting not only the power sector but also the broader economy by attracting foreign direct investment.
“Revamping the power sector requires planning, investment, and time.
We need to collaborate to resolve the issues in this sector, and this is why the ICRC was established, to regulate and leverage private sector investment,” he said.
He further emphasized the Commission’s commitment to streamlining the PPP process, citing a six-point policy issued to fast-track PPP projects under President Bola Tinubu’s directive.
These new guidelines are designed to reduce project delays, attract serious investors, and ensure each contract includes conditions that allow automatic cancellation for non-compliance.
Ewalefoh also commended Minister Adelabu’s deep understanding of the sector, affirming that Tinubu’s choice of Adelabu to lead power sector reform was “commendable.”
