The Federal Government has called for increased private sector investment in Nigeria’s electricity industry, admitting that more than N10tn spent since the 2013 privatisation has not delivered the reliable power supply expected from the reform.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, made the call on Thursday at the sixth annual conference of the Power Correspondents Association of Nigeria in Abuja.
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The conference, themed *“$1tn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply”*, brought together stakeholders to examine strategies for improving electricity supply as the Federal Government pursues its ambition of growing the economy to $1tn by 2030.
Anuwe said government funding had helped keep the electricity industry operational but warned that public investment alone could not address its infrastructure and financing challenges.
“Government has invested over N10tn in the electricity sector since the advent of privatisation. But is it enough? How much money is enough?” he asked.
He noted that the Federal Government currently accounts for more than 95 per cent of new infrastructure investment in the sector, describing the situation as unsustainable and contrary to the original objectives of privatisation.
According to him, the industry needs simpler investment structures, predictable regulations, clear institutional responsibilities and commercially viable projects to attract private capital.
Anuwe said the government could not continue to shoulder the bulk of the sector’s investment requirements, urging stakeholders to move beyond explanations for the industry’s difficulties and focus on practical solutions.
He disclosed that FGN Power Company was working towards a financing structure capable of attracting $18bn from investors and financiers.
The company is also targeting at least $1bn in capitalisation, with the Africa Finance Corporation expected to provide a matching amount.
Under the ongoing Presidential Power Initiative, Anuwe said the company was targeting an additional 5,540 megawatts of transmission capacity by 2029, alongside an improvement of at least 60 per cent in grid reliability.
The projects include a second batch of 12 Siemens substations and special interventions involving Omotosho, which are expected to deliver nearly 3,400MW cumulatively.
Meanwhile, the Minister of Power, Joseph Tegbe, said the Federal Government had developed a four-pronged roadmap to address persistent challenges in the electricity industry.
He listed the priorities as grid stabilisation, sector liquidity and sustainability, asset optimisation, and expansion and enhancement of the national grid.
Tegbe disclosed that the government had raised N1.23tn under its N3.3tn plan to settle verified legacy debts owed to electricity generation companies.
He also said more than 2.8 million electricity customers had been metered under the Presidential Metering Initiative.
According to the minister, additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026.
He said more than 1,300MVA had been added in the two months preceding the conference through the installation of new substation equipment in locations including Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri and Walalambe.
Tegbe explained that the government was adopting a corridor-based approach to prioritise major electricity demand centres and improve the prospects of more reliable supply to industrial and residential customers.
He added that a technical audit had been commissioned to identify critical constraints and guide the sequencing of infrastructure interventions.
The latest push for private investment comes against the background of persistent difficulties in Nigeria’s electricity market, including inadequate generation, gas supply constraints, weak transmission and distribution infrastructure, mounting debts and insufficient investment.
The 2013 privatisation transferred the country’s 11 electricity distribution companies and six generation companies to private investors, while the Federal Government retained ownership of the transmission network.
However, successive government interventions have continued to support the industry, raising questions about the extent to which private operators have delivered the investment and improvements expected from the reform.
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Anuwe’s remarks highlight the Federal Government’s renewed effort to attract private financing and reduce dependence on public funds as it seeks to improve electricity supply and support economic growth.
Mariam Balogun is a contributor to Freelanews.com, covering news, business, and public affairs.
