Nigeria requires $10 billion annually for power sector revival — Minister

The Minister of Power, Adebayo Adelabu, revealed that the country needs an annual $10 billion investment to revive Nigeria’s power sector over the next decade during an investigative hearing in Abuja.

Adelabu emphasized the need for significant infrastructure funding to ensure sector stability. He noted that attracting private investors and lenders is crucial due to the government’s inability to afford such a substantial investment alone.

Adelabu highlighted the importance of implementing commercial pricing to make the sector attractive to investors, citing increased interest following tariff adjustments.

However, concerns were raised about the impact of tariff increases, particularly for customers experiencing inadequate power supply.

One of the sector’s major challenges is the absence of liquidity due to years of operating on subsidized tariffs, resulting in significant debts owed to GenCos and Gas Companies.

Adelabu urged lawmakers to support efforts to settle these outstanding debts to ensure sector sustainability.

Efforts to improve power supply include investments in hydroelectric power projects like the Zungeru and Kashimbila plants. Additionally, the government is investing in 26 small hydropower dams to enhance electricity production nationwide.

During the hearing, concerns were raised about sector inefficiencies and the lack of consultation before implementing tariff adjustments. Some senators called for a reversal of the tariff hike to protect vulnerable citizens.

Stakeholders present at the event included representatives from the Nigerian Electricity Regulatory Commission (NERC), the Manufacturers Association of Nigeria (MAN), the Association of Power Generation Companies (Gencos), and Electricity Distribution Companies.