Nigeria’s Federal Government is seeking to raise $10 billion in investment, partly from the private sector, to address the nation’s chronic power supply issues and ensure reliable electricity for the next five to ten years.
This effort is a key part of the government’s strategy to overhaul the power sector and achieve 24-hour electricity nationwide.
The Minister of Power, Adebayo Adelabu, emphasised the need for collaboration with private investors, particularly through Public-Private Partnerships (PPPs), to co-finance the $10 billion required.
Given the significant funding and technical challenges involved, the government cannot handle the full financial burden alone.
The Infrastructure Concession Regulatory Commission is seen as central in facilitating private sector involvement, which is critical to attracting investment and stimulating broader economic growth.
He said, “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.”
A recent meeting between Adelabu and Dr. Jobson Oseodion Ewalefoh, the Director-General of ICRC, highlighted the urgency of replacing aging equipment to prevent further grid collapses.
Additional funding from Nigeria’s 2024 Supplementary Budget and 2025 Appropriation Bill will also be needed to address these issues.
The ICRC plans to regulate and streamline the investment process, ensuring private sector involvement while protecting the government’s interests.
To further encourage private investment, the ICRC has issued a six-point policy to accelerate the delivery of PPP projects, while remaining vigilant about regulatory standards to avoid risks and delays.
