Nigeria targets $10bn investement for uninterrupted power supply
The Minister of Power, Adebayo Adelabu, has revealed that an investment of $10bn is required to attain a 24-hour supply of electricity in Nigeria.
Adelabu made this disclosure while receiving the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Oseodion Ewalefoh, in Abuja on Wednesday.
To achieve this, the Minister revealed that the Federal Government of Nigeria is planning a partnership with the private sector to generate part of the huge sum.
The move, he said, will take five to ten years to actualize.
Ewalefoh and Adelabu both agreed that joint financing through Public-Private Partnerships was the only way forward for the power sector in teh country.
According to a statement issued by the Acting Head of Media and Publicity, Ifeanyi Nwoko, on Wednesday, this could only happen by involving the private sector.
In a bid to check the incessant collapse of the national grid, the Minister had, last week, ordered for all ageing equipment to be replaced.
The Minister further said that to find a lasting solution to the persistent national grid issues and to source finance for the $10bn power move, the 2024 Supplementary Budget and the 2025 Appropriation Bill must provide more funding for the sector.
“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.
“Can the government do it alone? No! This is why we need to marshal private sector funds while still retaining government interest and ownership. This is where ICRC comes in. We need to collaborate with the private sector, and the best way to do this is through concessions,” the Minister said.
In his reaction, the Director-General noted that the ICRC can source part of the $10bn via private sector investment through regulatory processes.
“Revamping the power sector requires planning, investment, and time. We need to collaborate to resolve the issues in this sector. The investment required is vast, and the government cannot fund it alone, so we must leverage the private sector’s financial capacity. That is why the ICRC was established—to regulate this leverage,” the Director-General said.
He noted that the Commission was finalizing steps to lure investors to the power sector.
