Nigeria targets reliable power supply with $10 billion investment through public-private partnerships

In a key move to revitalize Nigeria’s ailing power sector, the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, and Minister of Power, Chief Adebayo A. Adelabu, met in Abuja on Tuesday, November 12, to discuss a collaborative approach between the public and private sectors.

Dr. Ewalefoh emphasized the critical role private sector investment plays in rejuvenating the country’s power infrastructure. “The investment required in power is enormous, and government alone cannot shoulder this burden. We must harness the financial capabilities of the private sector, which is why the ICRC was established to regulate such partnerships,” he stated.

As Nigeria’s power infrastructure faces increasing pressure due to neglect and inadequate upgrades, the government has recognized Public-Private Partnerships (PPP) as a vital solution to secure the investment and expertise needed to modernize the sector.

Minister Adelabu echoed this perspective, highlighting that the goal of achieving 24-hour electricity supply across Nigeria within the next five to 10 years demands at least $10 billion in funding—an amount the government alone cannot afford due to competing funding needs in other sectors.

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“Achieving consistent power supply will require collaborative efforts with the private sector, particularly through concessional agreements,” he explained.

Both leaders agreed that improving existing infrastructure and financing new projects would necessitate strong cooperation between public and private entities. The ICRC remains committed to ensuring that PPP processes are streamlined and effective, ensuring transparency and accountability.

Dr. Ewalefoh also addressed concerns regarding potential project delays and non-compliance, asserting that the ICRC’s stringent regulatory measures would ensure that any defaulting bidders face automatic nullification of their agreements. “We are incorporating conditions precedent into all PPP agreements to ensure accountability,” he stressed.

This partnership marks a pivotal step in transforming Nigeria’s power sector, with hopes to attract foreign direct investment, stimulate economic growth, and provide Nigerians with consistent, reliable power.