Federal Government has unveiled plans to partner with the private sector to raise $10 billion, needed to ensure consistent and reliable electricity supply across the country. This initiative aims to address Nigeria’s chronic power supply challenges and is expected to take five to ten years.
Key Highlights:
- Investment Requirements: Nigeria requires at least $10 billion over the next ten years to achieve 24-hour power supply.
- Private Sector Involvement: The government seeks private sector participation through Public-Private Partnerships (PPP) for co-financing and expertise.
- ICRC Regulatory Role: The Infrastructure Concession Regulatory Commission (ICRC) will facilitate private sector investment and regulate the processes.
Minister of Power, Adebayo Adelabu, emphasized that the government cannot shoulder the financial burden alone, necessitating private sector involvement ¹. Director-General of ICRC, Dr. Jobson Oseodion Ewalefoh, acknowledged the complexity of challenges facing the power sector, extending beyond funding, and stressed the need for inter-agency collaboration and private-sector involvement.
Strategic Initiatives:
- Replacement of Aging Equipment: Immediate replacement ordered to prevent frequent national grid collapse.
- Additional Funding: Required from the 2024 Supplementary Budget and 2025 Appropriation Bill.
- Six-Point Policy Direction: Streamlined PPP process for service delivery, issued by ICRC.
The Commission remains vigilant in regulating investment processes to prevent contingent liabilities and unnecessary delays. This collaborative effort aims to revamp Nigeria’s power sector, attract foreign direct investment, and stimulate economic growth.
