Nigeria Seeks $10bn Private Sector Investment for Power Sector Overhaul
By Patience Ikpeme
The Federal Government of Nigeria plans to mobilize part of the $10 billion needed to secure regular electricity nationwide over the next five to ten years, with a substantial contribution from the private sector.
This focus emerged during a meeting between Dr. Jobson Oseodion Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), and Minister of Power, Chief Adebayo Adelabu, held in Abuja on Tuesday.
Both officials agreed that the funding and technical expertise required to advance Nigeria’s power sector necessitate private sector involvement through Public-Private Partnerships (PPPs) to enhance infrastructure and boost operational performance.
Dr. Ewalefoh emphasized the critical role of power in Nigeria’s economic development, noting that current challenges extend beyond funding and include technical complexities. “The power sector’s improvement requires planning, significant investment, and collaboration with the private sector,” he said. “The ICRC can facilitate private sector participation in the $10 billion investment target, boosting electricity supply and attracting more foreign direct investment across the economy.”
He also highlighted recent regulatory advancements by the ICRC to streamline PPP processes as directed by President Bola Ahmed Tinubu. These changes, outlined in a new six-point policy, aim to expedite project delivery while maintaining stringent regulatory standards to prevent delays and ensure only capable firms secure partnerships. The ICRC now includes conditions precedent in all agreements, allowing automatic nullification for non-compliant bidders.
Minister Adelabu commended the ICRC’s commitment, noting that achieving reliable power supply nationwide requires substantial investment beyond what government alone can provide. “To achieve 24-hour power supply within 5 to 10 years, an estimated $10 billion is required,” he said. “Government cannot bear this alone, which is why we must leverage private sector financing while maintaining public ownership through PPPs and concession arrangements.”
The government, he added, sees the ICRC as key to advancing these investments through carefully structured partnerships that balance public interest and private sector capability.
