The Federal Government of Nigeria has said there is an urgent need for private investment in the energy sector. It estimates that at least $10 billion will be needed over the next 10 years for Nigeria to achieve a 24-hour power supply nationwide. The request was made by the Minister of Energy, Dr. Adebayo Adelabu, during his visit to the country. The request was raised by Jobson Ewalefo, Executive Director of the Infrastructure Concession Regulatory Commission (ICRC).
Adelabu revealed that relying solely on government funds is not feasible given the competing demands of other key sectors. He explained that the government’s approach has been to enlist the support of the private sector through concessions that allow for shared management while introducing much-needed capital and expertise.
The ICRC, which regulates such partnerships, will play a key role in monitoring these private investments and ensuring they are aligned with national infrastructure goals.
Ewalefoh stressed the importance of working with the private sector to solve Nigeria’s long-standing power problems. He noted that the Public-Private Partnership (PPP) model is essential to improve infrastructure performance and secure additional funding.
With over 85 million Nigerians lacking access to reliable electricity, optimizing existing facilities and building new ones is essential to meet the country’s growing energy demand.
In response, the ICRC introduced a streamlined policy framework to promote PPP engagement. According to Ewalefoh, the six-point policy aims to avoid delays in project execution and minimize the risks posed by unprepared companies.
The Commission will also ensure that each contract contains strict conditions that will void the contract if private bidders do not meet certain requirements.
Both officials note that foreign direct investment in Nigeria’s energy sector will help modernize the grid and boost economic growth. The two leaders agreed that ensuring reliable electricity supply will strengthen the Nigerian economy, benefiting both businesses and households.
The partnership approach is aimed at attracting both financial investment and technical expertise from international players, ultimately bringing sustainable energy solutions to Nigeria.
