The federal government of Nigeria has said there is an urgent need for private sector investment in the power sector, estimating that a minimum of $10 billion is required over the next decade to achieve a stable 24-hour power supply nationwide.
This call was made by Minister of Power, Mr Adebayo Adelabu, during a visit from Dr Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC).
Adelabu clarified that solely relying on government funding is not feasible, given the competing demands of other essential sectors.
He stated that the government’s approach includes enlisting the support of the private sector through concessions that would allow shared control while bringing in much-needed capital and expertise.
The ICRC, which regulates such partnerships, will be key in overseeing these private investments to ensure they align with national infrastructure goals.
Ewalefoh emphasised that private sector collaboration is important for addressing Nigeria’s long-standing electricity challenges. The Public-Private Partnership (PPP) model, he noted, is essential for boosting infrastructure performance and securing additional funds.
Given that over 85 million Nigerians lack access to reliable grid electricity, optimising existing facilities and building new ones has become imperative to meet the nation’s growing energy needs.
In response, the ICRC has introduced a streamlined policy framework to facilitate PPP engagements. According to Ewalefoh, this six-point policy is designed to prevent delays in project execution and minimise risks posed by ill-prepared companies.
The commission is also ensuring that each agreement includes strict conditions that nullify contracts if private bidders fail to meet specified requirements.
Both officials note that foreign direct investment in Nigeria’s energy sector would help revamp the electricity grid and stimulate economic growth. They agreed that enabling a reliable power supply would enhance Nigeria’s economy, benefiting both businesses and households.
This partnership-driven approach is expected to attract both financial investments and also technical expertise from international players, ultimately bringing sustainable energy solutions to Nigeria.
