The Federal Government (FG) has reaffirmed its dedication to ensuring a consistent and dependable electricity supply for its citizens, a goal projected to necessitate an investment of $32.8 billion and the implementation of innovative solutions.
Of this substantial sum, $15.5 billion is expected to be raised from the private sector.
This disclosure was made by the Minister of Power, Adebayo Adelabu, during the ‘Mission 300’ Stakeholders Engagement meeting held at the Transcorp Hilton Hotel in Abuja.
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Mission 300 is an ambitious initiative, spearheaded by the World Bank Group and the African Development Bank Group (AfDB), which aims to provide electricity access to 300 million people across Sub-Saharan Africa by 2030, thereby accelerating the transformation of the continent’s energy sector and closing the significant energy access gap.
Mr Adelabu emphasised that the federal government is steering the power sector towards long-term viability and financial sustainability by prioritising ongoing reforms.
He underscored these reforms as crucial for the nation’s economic growth and development.
The stakeholders’ meeting, he noted, served as a crucial platform to align strategies and forge necessary partnerships to translate Nigeria’s Energy Compact into tangible results.
He called upon development partners, private sector entities, philanthropic organisations, public sector bodies, and civil society groups to collaborate on this vital mission.
“Mobilising this level of financing will demand innovation, coordination, and a shared commitment,” Mr Adelabu stated.
He urged attendees to ask hard questions, identify practical solutions, and develop actionable plans that will make universal access a reality by powering hospitals, schools, industries, and homes.
Key priorities for the government’s power sector reforms, as outlined by the Minister, include addressing market liquidity challenges and initiating necessary systemic changes.
He highlighted a significant outstanding debt of approximately N4 trillion owed to Power Generation Companies (GenCos) as of December 2024, largely due to unpaid government subsidies.
The FG, he assured, is developing strategies to clear this obligation and prevent future accruals.
Additionally, he announced plans to transition the sector to a fully cost-reflective tariff system while simultaneously implementing targeted subsidies for economically vulnerable citizens.
He said other critical areas of focus include enhancing power generation through the recovery of idle capacities, diversifying the energy mix to ensure energy security, and introducing more affordable and cleaner energy sources.
Mr Adelabu also said the government aims to expand transmission infrastructure to increase power delivery, improve national grid stability to prevent future collapses, and strengthen grid coordination and management.
Furthermore, Mr Adelabu affirmed the government’s commitment to bolstering the viability and performance of the distribution segment of the power sector.
This, he said, through strategic programs such as the Presidential Metering Initiative (PMI) and the World Bank-funded Distribution Sector Recovery Program (DISREP).
He also mentioned the ministry’s pursuit of increased renewable energy adoption through rural electrification and energy transition initiatives, aiming to provide reliable power to underserved communities.
Through its training institute, the ministry is also working to enhance human capital and local content development, thereby reducing import dependence, fostering job creation, and cultivating a homegrown energy industry.
READ ALSO: FG moves to clear ₦2trn in outstanding power sector liabilities
The Minister of Finance, Wale Edun, who joined the meeting via Zoom from Brazil reiterated that the government’s power sector reforms are pivotal to unlocking Nigeria’s full economic potential, which will in turn stimulate job creation.
He noted that these reforms have already led to ‘over 40 per cent’ increase in power distribution during the first quarter of 2025.
