$23.2bn Investment Needed To Revamp Power Sector

The federal government has unveiled an ambitious energy access programme that will see to the transformation of the nation’s energy sector.

With the programme, the FG targets a $23.2 billion Investment for the Power Sector, out of which it aims to mobilise $15.5 billion in private investment to drive last-mile electrification.

Minister of Power, Adebayo Adelabu, who spoke at the just-concluded Energy African Summit held in Tanzania, said it would expand electricity access, increase renewable energy adoption, and improve clean cooking solutions for millions of Nigerians.

“With 150 million Nigerians already electrified, Nigeria remains committed to ensuring universal access to affordable and sustainable energy by 2030,” the minister said.

Adelabu noted that while the roadmap for expansion is clear, challenges such as vandalism of power infrastructure pose a significant threat to Nigeria’s electrification efforts.

“Transmission towers, pipelines, and distribution equipment have been targeted, disrupting supply and deterring potential investors,” he said.

The minister emphasised that protecting power assets is crucial to ensuring an uninterrupted electricity supply and sustaining progress, adding that “the government is intensifying efforts to curb vandalism through enhanced security, stricter penalties, and improved surveillance technologies.”

According to him, achieving Nigeria’s electrification targets requires significant investment, and the government is prioritising private sector participation to unlock additional resources.

“The Compact outlines a $23.2 billion investment target, with $15.5bn expected from private investors. These funds will be directed toward expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewables.

Recognising that achieving universal energy access demands collective action, the government called on development partners, philanthropies, and the private sector to join the transformative journey.

“By implementing the action plan in the National Energy Compact, Nigeria is positioning itself as a leader in Africa’s energy transition and creating opportunities for economic growth, job creation, and industrialisation,” the minister reiterated.

“As the Mission 300 initiative gains momentum, Nigeria’s strong commitment to energy sector reforms, infrastructure expansion, and investment mobilisation will be crucial in shaping the future of electricity access across the continent,” he added.