The Nigerian government has announced that the country requires $15 billion from private investors to overhaul its struggling power sector.
According to a Bloomberg report on Tuesday, the federal government made its appeal at a World Bank energy summit in Tanzania, outlining plans to attract investors by adjusting electricity tariffs while offering fresh subsidies to cushion the impact on households.
As part of the strategy, Nigerians will receive a subsidized 50 kilowatt-hours (kWh) of electricity per month, either through direct consumption or via vouchers. The initiative is also aimed at providing power access to the 86 million people currently living without electricity.
Earlier this year, Minister of Power Adebayo Adelabu outlined plans to increase electricity generation from 4,000 megawatts (MW) to 6,000MW within three to six months. However, persistent challenges, including vandalism and grid failures, continue to plague the sector.
On April 3, 2024, the National Electricity Regulatory Commission (NERC) approved a tariff hike for Band A customers, raising rates from N66 to N225 per kWh. Despite these efforts, power generation remains unstable.
The Association of Power Generating Companies (APGC) revealed that Nigeria’s national grid has collapsed 162 times in the past 11 years, with the most recent disruptions reported on October 24, 2024. Additionally, the Transmission Company of Nigeria (TCN) disclosed that 18 transmission towers were vandalized in Rivers, Abia, and Kano states between January 9 and 14.
To combat these challenges, Adelabu announced that N8 billion will be allocated by 2025 for technology-driven security measures to protect power infrastructure and curb vandalism.
With these reforms and investments, the government aims to stabilize the power sector and drive economic growth by ensuring a more reliable electricity supply for millions of Nigerians.
