Nigeria wants $100bn energy sector investments – FG

The Federal Authorities has disclosed that Nigeria requires over $100bn in mixed authorities and personal sector investments throughout the ability sector worth chain to realize a dependable, round the clock electrical energy provide.

Talking at a press convention in Abuja on Thursday to tell the general public on developments and achievements within the energy sector beneath the present administration, the Minister of Power, Adebayo Adelabu, acknowledged the current drop in electrical energy provide nationwide, apologising to Nigerians whereas promising swift corrective measures.

“Put collectively, we’re speaking of over $100bn of investments within the upstream, midstream, and downstream of the ability sector worth chain,” Adelabu mentioned. “This isn’t a determine to be underestimated, however it’s achievable in phases, by a mixture of presidency and personal sector participation. Persistence and constant funding are key.”

Based on the minister, the federal government has estimated that including 20,000 megawatts of energy technology would require roughly $30bn, assuming a median of $1.5bn per 1,000MW plant. Transmission infrastructure to evacuate this energy would require $20bn, whereas distribution and gasoline pipeline investments would require roughly $25bn and $22bn, respectively.

Adelabu famous that whereas South Africa, with a inhabitants of about 60 million, contemplates a $25bn non-public sector funding in its energy sector, Nigeria’s bigger inhabitants of over 200 million necessitates proportionally larger investments.

Regardless of the present challenges, the minister highlighted important milestones achieved because the administration assumed workplace in September 2023. “For the primary time in Nigeria’s historical past, we achieved a technology peak of 6,001 megawatts in April 2025, and the best transmission of 5,801 megawatts on March 2, 2025,” he mentioned.

“This was made doable by completion of the Zungeru hydro energy plant (700MW), rehabilitation of present thermal crops, and enlargement of renewable vitality by way of mini-grids.”

Put in capability rose from 13,000MW in 2023 to 14,400MW in 2025, whereas monetary interventions included a N4tn debt restructuring to clear excellent unpaid subsidies to power-generating firms, of which N501bn has already been raised from the bond market and disbursed.

The introduction of cost-reflective tariffs for a portion of shoppers (about 15 per cent) has considerably boosted sector income. “Income grew from N1tn in 2023 to N2.3tn in 2025,” Adelabu mentioned.

“This allowed funds to technology firms to extend from 9 per cent to between 35 per cent and 40 per cent of invoices, dramatically lowering authorities subsidy necessities.”

The minister emphasised that the phased strategy ensures infrastructure upgrades throughout bonds A to E, progressively increasing the variety of shoppers having fun with 24-7 electrical energy. “By steadily migrating prospects to upgraded infrastructure, we are able to obtain 60–70 per cent protection inside just a few years,” he mentioned.

Adelabu disclosed that Nigeria’s nationwide grid can now wheel as much as 8,500 megawatts, up from 5,000MW in 2023, with a goal of 15,000MW inside three years upon completion of ongoing tasks, together with the Presidential Energy Initiative.

“Infrastructure upgrades have decreased grid collapses from a median of 12–15 per yr to only 4 over the past two and a half years,” he mentioned. “This demonstrates the tangible influence of our investments in transmission and substation upgrades.”

The minister additional attributed current energy shortages to gasoline provide constraints affecting 75 per cent of Nigeria’s gas-fired crops.

“Even the most effective generators can’t function with out uncooked supplies,” he mentioned. “World gasoline shortages as a result of Center East disaster, native provide obligations, excellent funds to gasoline suppliers, and pipeline repairs have all contributed to the current decline in technology.”

Solely two out of 32 energy crops presently have agency gasoline provide contracts, he added, whereas the remainder depend on irregular provides on a best-effort foundation. “We’re interesting to all stakeholders for coordinated motion to reverse this development,” Adelabu mentioned, calling for structured cooperation between the Ministries of Energy, Petroleum, Water Assets, and Surroundings.

Nigeria’s electrical energy sector has lengthy struggled with a mixture of structural and operational challenges, together with insufficient gasoline provide, ageing infrastructure, transmission bottlenecks, and protracted liquidity points throughout the worth chain.

Adelabu concluded by reiterating the ministry’s imaginative and prescient: “We see 24-7 electrical energy not as a vacation spot, however as a journey. By way of phased investments, coordination, and personal sector engagement, Nigeria can attain a dependable electrical energy provide for all its residents.”