The Nigerian government is seeking to raise a substantial portion of the $10 billion needed to secure a stable and reliable electricity supply for the country through public-private sector partnerships, according to recent statements from officials. This ambitious plan, aimed at addressing Nigeria’s long-standing power supply challenges, is expected to span a period of five to ten years.
The initiative was discussed during a visit by Dr. Jobson Oseodion Ewalefoh, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), to the Minister of Power, Adebayo Adelabu, in Abuja. A statement from the Acting Head of Media and Publicity, Ifeanyi Nwoko, detailed that both officials agreed on the importance of involving the private sector in the funding and technical aspects of the country’s power sector to ensure efficient infrastructure performance.
Dr. Adelabu highlighted that while the government would take an active role in this project, the sheer scale of the financial and technical needs for improving the national grid made private sector collaboration essential. He stated that Nigeria would require at least $10 billion over the next decade to ensure 24-hour power supply, emphasizing that the government could not shoulder this burden alone, given other pressing financial priorities.
“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 do it alone. This is why we need to involve the private sector, while still maintaining government interest and ownership,” said the Minister of Power.
The Minister also pointed out that replacing outdated equipment in the national grid was a priority to prevent frequent collapses. Further funding, he noted, would be sourced from the 2024 Supplementary Budget and the 2025 Appropriation Bill to address the immediate financial needs.
In response, Dr. Ewalefoh stated that the ICRC could play a critical role in facilitating private sector investment through its regulatory framework, which would not only improve the power sector but also help attract foreign direct investment into other sectors, spurring economic growth. He acknowledged the multifaceted nature of the challenges facing the power sector, noting that financing alone would not resolve the issue. Collaborative efforts, including private sector involvement, were essential to tackle these complex problems.
“Revamping the power sector requires planning, investment, and time. We must collaborate across agencies and with the private sector to resolve these challenges,” Dr. Ewalefoh said. “The ICRC’s role is to regulate and facilitate this collaboration, ensuring that the right kind of investment flows into the sector.”
The ICRC DG also praised the Minister for his extensive expertise and the strategic approach he was bringing to the sector. Additionally, Dr. Ewalefoh mentioned that the ICRC had outlined a six-point policy direction to streamline the public-private partnership (PPP) process, helping to accelerate project delivery. He also emphasized the Commission’s focus on preventing delays or liabilities by ensuring that all PPP agreements include stringent conditions to protect the public interest.
