Nigeria’s Power Sector Needs $10 Billion Investment for 24-Hour Electricity, FG Says

Nigeria Power Sector Needs $10 Billion Investment for 24-Hour Electricity, FG Says

The Federal Government has announced that Nigeria requires an estimated $10 billion in Public-Private Partnership (PPP) investments over the next five to ten years to achieve uninterrupted, 24-hour power supply across the nation. Minister of Power, Adebayo Adelabu, emphasized the need for private sector involvement during a courtesy visit from Dr. Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC).

Adelabu highlighted the urgency of the investment, noting that the government alone cannot bear the entire financial burden due to the demands from other critical sectors. “Government cannot do it alone; this is why we have to look for organized private sector funding, while still retaining government interest and ownership,” he said. He explained that partnering with the private sector, through concessions managed by ICRC, is the most viable path forward.

Ewalefoh supported this view, stressing the importance of leveraging private sector investment to address the extensive challenges in Nigeria’s power sector. He noted that power is a crucial driver of economic development, making it essential to enhance the performance of existing infrastructure while also investing in new projects. “The investment required in the power sector is very large, and government funding alone is insufficient,” Ewalefoh stated.

According to Ewalefoh, the ICRC is committed to mobilizing private sector investment and foreign direct investment (FDI) to meet a portion of the $10 billion target. He highlighted that inter-agency collaboration, along with strategic PPPs, is crucial for addressing the sector’s limitations. “Revamping the power sector requires planning, substantial investment, and time. That’s why the ICRC was established – to regulate and facilitate this kind of private sector leverage,” he explained.

He also commended Minister Adelabu for his deep knowledge of the sector, noting that President Bola Tinubu’s choice of Adelabu for this position aligns with the administration’s commitment to addressing Nigeria’s power challenges. Ewalefoh pointed out that to further accelerate PPP investments, the ICRC has issued a six-point policy directive to streamline PPP service delivery, ensuring regulatory oversight remains strict. The commission, he assured, is focused on maintaining rigorous regulatory standards to avoid project delays and minimize financial risks from underqualified companies.

With this collaborative approach, both the Ministry of Power and ICRC hope to attract critical investment that will transform Nigeria’s power sector, ensuring reliable electricity that supports economic growth.