The Federal Government of Nigeria is taking significant steps to address the country's electricity challenges by planning to source part of the $10 billion needed for consistent power supply from the private sector over the next five to ten years.
This initiative was a key outcome of a recent meeting between Dr. Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), and Minister of Power Chief Adebayo Adelabu in Abuja.
Both officials recognized the urgent need for private sector involvement through Public-Private Partnerships (PPP) to meet the funding and technical requirements essential for advancing the power sector. They emphasized that collaboration with private entities is crucial for optimizing existing infrastructure and funding new projects.
Ewalefoh highlighted that revamping the power sector demands careful planning and substantial investment, which cannot be solely borne by the government.
He stated, “The investment required in power is very huge, and we have to leverage on the financing capacity of the private sector.” The ICRC is tasked with regulating this collaboration to ensure effective investment attraction.
To streamline this process, the ICRC has introduced a six-point policy directive aimed at accelerating PPP investments, as directed by President Bola Tinubu. This includes stringent conditions for bidders, ensuring that any defaults would lead to automatic nullification of their agreements.
Minister Adelabu echoed these sentiments, noting that achieving 24-hour power supply within the next decade necessitates a minimum funding of $10 billion. He stressed that government resources are limited and that engaging private sector funds while retaining governmental interest is vital for success.
