Federal Government has unveiled an ambitious plan to collaborate with private investors to secure a portion of the $10 billion required to ensure consistent and reliable electricity for the nation.
This strategy marks a critical component of the government’s mission to resolve Nigeria’s persistent power supply challenges, with a roadmap that spans an estimated five to ten years.
This initiative was a primary topic of discussion when the Director-General of the Infrastructure Concession Regulatory Commission, Dr. Jobson Oseodion Ewalefoh, paid a courtesy visit to the Minister of Power, Adebayo Adelabu, in Abuja.
During their meeting, both officials emphasized that private sector participation is essential to meet the technical and financial demands of upgrading the power infrastructure.
According to a statement from Ifeanyi Nwoko, Acting Head of Media and Publicity, the two leaders agreed on the need for Public-Private Partnerships to bring in co-financing and expertise to ensure the electricity infrastructure performs at its peak.
In recent actions to strengthen the power grid, the power minister directed the immediate replacement of outdated equipment, a measure intended to reduce the risk of frequent national grid collapses.
Adelabu also announced the necessity for additional funds from the 2024 Supplementary Budget and the 2025 Appropriation Bill to address the costs associated with these improvements.
The minister emphasized that Nigeria needs at least $10 billion over the next decade to achieve a steady 24-hour power supply nationwide.
He stated, “To achieve a 24-hour power supply across Nigeria within the next five to ten years, a minimum funding of $10bn is required. The government cannot shoulder this alone given the pressing financial needs of other critical sectors.”
He further highlighted that private sector investment would be essential, adding, “Can the government do it alone? No! This is why we need to marshal private sector funds while still retaining government interest and ownership. This is where ICRC comes in. We need to collaborate with the private sector, and the best way to do this is through concessions.”
In response, Ewalefoh assured that the ICRC is ready to facilitate private investments in the power sector, pointing out that bringing foreign direct investment into this and other sectors would contribute to economic growth.
Acknowledging that funding alone will not solve the sector’s problems, he emphasized that the complexities extend beyond financial constraints. With cross-agency cooperation and private investment, he believes these challenges can be resolved.
He explained, “Revamping the power sector requires planning, investment, and time. We need to collaborate to resolve the issues in this sector. The investment required is vast, and the government cannot fund it alone, so we must leverage the private sector’s financial capacity. That is why the ICRC was established—to regulate this leverage.”
The Commission’s regulatory role will be essential in managing investment inflows into the power sector, Ewalefoh added, while commending Minister Adelabu’s depth of industry knowledge and President Bola Tinubu’s strategic choice in appointing him.
In alignment with President Tinubu’s push for accelerated PPP investment, he outlined the Commission’s new six-point policy, which aims to streamline the PPP process and speed up project delivery timelines.
Ewalefoh underscored that the Commission has introduced stricter measures to protect the integrity of projects, including requiring conditions precedent in all PPP agreements.
This includes a clause that nullifies any agreement if a preferred bidder fails to meet the terms.
By introducing these streamlined yet vigilant regulatory measures, the ICRC aims to encourage qualified investors while guarding against potential delays or liabilities that might arise from inadequate project execution.
This strategic approach seeks to build a reliable electricity supply that can fuel sustainable development across Nigeria.
