FG launches $23b power plan

The Federal Government has announced a $23.2 billion energy access programme aimed at resolving Nigeria’s persistent power crisis, with $15.5 billion expected from private sector investments.

The plan, unveiled by Minister of Power, Adebayo Adelabu, seeks to significantly increase electricity access and boost renewable energy adoption.

According to a statement by the Minister of Power’s spokesperson, Bolaji Tunji, the initiative—led by Minister Adebayo Adelabu—aims to drive sector-wide transformation.

The initiative, the statement said, emerged from the recently concluded Mission 300 Africa Energy Summit in Tanzania, which seeks to accelerate electricity access for 300 million Africans by 2030.

The two-day summit, which brought together African leaders, business executives, and development partners, was hosted by the Government of Tanzania, the African Union, the African Development Bank Group, and the World Bank Group.

Under the National Energy Compact, the government plans to increase electricity access from 4% to 9% annually; expand clean cooking access from 22% to 25% per year; boost renewable energy’s share in the power mix from 22% to 50%; and mobilize $15.5 billion in private sector investment for electrification.

Adelabu stressed that Nigeria, with 150 million electrified citizens, remains committed to achieving universal access by 2030. However, he noted persistent challenges such as vandalism of power infrastructure, which disrupts supply and deters investors.

To address these issues, the federal government, Adelabu said, is enhancing security, implementing stricter penalties, and leveraging technology to safeguard power assets.

Adelabu further reiterated the importance of private sector participation in meeting Nigeria’s energy targets, directing investments towards generation expansion, transmission upgrades, and renewable energy integration.

Despite being Africa’s most populous country, Nigeria struggles with a meagre 4,500MW of electricity. Efforts to raise output to 6,000MW in 2024 were thwarted by grid collapses and infrastructure sabotage, prompting over 250 companies to exit the national grid for self-generated power.

The government urged development partners and investors to support the energy compact, positioning Nigeria as a leader in Africa’s energy transition while fostering economic growth, job creation, and industrialisation.

“The compact outlines a $23.2bn investment target, with $15.5bn expected from private investors. These funds will be directed towards expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewable energy solutions,” the statement read, adding that by implementing the action plan in the National Energy Compact, Nigeria is positioning itself as a leader in Africa’s energy transition while creating opportunities for economic growth, job creation, and industrialisation.

“As the Mission 300 initiative gains momentum, Nigeria’s strong commitment to energy sector reforms, infrastructure expansion, and investment mobilisation will be crucial in shaping the future of electricity access across the continent,” the statement added.