FG set to partner private sector to raise $10bln for power sector

The Federal Government has unveiled an ambitious plan to collaborate with the private sector to raise $10 billion, aiming to ensure a consistent and reliable electricity supply across the country within the next five to ten years.

This initiative is part of the government’s broader strategy to tackle Nigeria’s chronic power supply challenges.

According to the Minister of Power, Adebayo Adelabu, the $10 billion investment will be sourced through Public-Private Partnerships (PPPs), leveraging the financial capacity of the private sector while retaining government interest and ownership.

Adelabu emphasized that the government cannot shoulder the financial burden alone, given the pressing needs of other critical sectors.

He said: “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.

“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.”

The Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Ewalefoh, echoed the minister’s sentiments, highlighting the complexity of the power sector’s challenges, which extend beyond funding.

Ewalefoh stressed the importance of interagency collaboration and private-sector involvement in addressing these limitations.

He said: “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 ICRC has also introduced measures to ensure the effectiveness of PPP agreements, including the incorporation of conditions precedent that automatically nullify contracts if preferred bidders default on terms.

This move aims to prevent contingent liabilities and unnecessary delays.

With this investment plan, Nigeria is poised to revamp its power sector, attract foreign direct investment, and stimulate economic growth.

The collaboration between the government and private sector is expected to yield positive results, addressing the nation’s chronic power supply challenges and paving the way for a brighter future.