The Federal Government of Nigeria has announced plans to collaborate with the private sector to raise a significant portion of the $10 billion required to establish reliable 24-hour electricity across the country. This initiative, expected to span five to ten years, aims to address Nigeria’s long-standing power challenges.

The proposal was discussed during a recent meeting between Dr. Jobson Oseodion Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), and Minister of Power Adebayo Adelabu in Abuja. According to a statement by Ifeanyi Nwoko, Acting Head of Media and Publicity, the officials agreed that Public-Private Partnerships (PPPs) are essential for co-financing and expertise to achieve optimal performance in Nigeria’s power infrastructure.

Highlighting the urgency, Adelabu stated, “Achieving a 24-hour power supply across Nigeria within five to ten years requires a minimum of $10 billion. The government alone cannot bear this financial load due to the demands from other critical sectors. This is why we must engage private sector funds, retaining government interest and ownership through concessions.”

Last week, Adelabu also ordered the immediate replacement of aging equipment to prevent national grid collapses, with additional funding needs anticipated in the 2024 Supplementary Budget and the 2025 Appropriation Bill.

Ewalefoh emphasized that funding is just one aspect of the complex issues facing the power sector. He pointed out that while government partnerships with private investors could unlock the required funds, successful outcomes would depend on regulatory vigilance and incorporating clear terms to avoid delays by underprepared bidders.

The ICRC’s recent six-point policy, introduced to streamline the PPP process, is part of efforts directed by President Bola Tinubu to accelerate private investment in key infrastructure sectors.