The Nigerian Federal Government is stepping up its efforts to solve the nation’s persistent power supply problems by launching a $10 billion initiative in partnership with the private sector. Aiming to secure reliable, 24-hour electricity for Nigerians within the next decade, the government plans to fund a portion of the project through Public-Private Partnerships (PPP). This strategy marks a significant step in addressing the financial and technical barriers that have long hindered progress in Nigeria’s power sector.
The ambitious plan was a central focus of discussions between the Infrastructure Concession Regulatory Commission (ICRC) Director-General, Dr. Jobson Oseodion Ewalefoh, and the Minister of Power, Adebayo Adelabu, during a recent meeting in Abuja. According to the Acting Head of Media and Publicity, Ifeanyi Nwoko, the meeting highlighted the urgent need for private sector involvement to bridge the funding gap and bolster technical expertise for effective power infrastructure.
Minister Adelabu underscored the need for at least $10 billion over the next five to ten years to reach the target of a round-the-clock power supply. He emphasized that while government support remains essential, limited resources make it impractical for the public sector to tackle this challenge alone. Adelabu remarked, “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 shoulder this alone given the pressing financial needs of other critical sectors.” He added that PPPs will be key to ensuring government ownership and interest in the power sector without compromising efficiency.
As part of recent reforms, Adelabu also directed the immediate replacement of outdated power equipment, a recommendation aimed at reducing frequent grid failures. Additional funding for these infrastructure improvements is expected to come from the 2024 Supplementary Budget and the 2025 Appropriation Bill.
Dr. Ewalefoh assured the minister of ICRC’s support, noting that its regulatory processes would play a pivotal role in attracting private investment to fund part of the $10 billion requirement. He acknowledged that while financial backing is essential, other complex challenges in the power sector must be addressed, including planning and technical limitations. He explained that private-sector partnerships would help ease the financial burden on the government and foster a pathway to lasting solutions.
To accelerate the adoption of PPP models, the ICRC has introduced a six-point policy direction, streamlining the PPP process and ensuring timely project delivery. Dr. Ewalefoh emphasized the Commission’s commitment to enforce “conditions precedent” in all PPP contracts to avoid unnecessary delays, protect against contingent liabilities, and nullify contracts with non-compliant bidders.
Dr. Ewalefoh commended President Bola Tinubu’s appointment of Minister Adelabu, highlighting his understanding of the sector’s complexities. Both officials expressed optimism that with strong inter-agency collaboration and a well-regulated PPP framework, Nigeria’s power sector could achieve transformative progress, ultimately boosting economic growth and foreign investment across multiple sectors.
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