The Federal Government has announced an ambitious investment strategy of $23.2 billion intended to revolutionize Nigeria’s energy sector, with $15.5 billion anticipated to be contributed by private investors.
The project, which is a component of the National Energy Compact, was revealed by the Minister of Power, Adebayo Adelabu, after the recently held Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania.
The summit, hosted by the Government of Tanzania in collaboration with the African Union, African Development Bank Group, and World Bank Group, seeks to accelerate electricity access for 300 million Africans by 2030.
In a statement on Thursday, Adelabu’s media aide, Bolaji Tunji, outlined the key objectives of the NEC.
Through the programme, the government aims to, expand electricity access from 4% to 9% annually to close the energy gap.
Increase access to clean cooking solutions from 22% to 25% annually, boost renewable energy’s share in power generation from 22% to 50%, mobilize $15.5 billion in private investment for last-mile electrification.
The plan aligns with the United Nations Sustainable Development Goal 7 (SDG7), which promotes universal access to modern energy services.
Adelabu, who unveiled the programme, underlined the government’s dedication to boosting clean cooking options for millions of Nigerians, increasing the use of renewable energy, and increasing access to power.
“Nigeria remains committed to ensuring universal access to affordable and sustainable energy by 2030, with 150 million Nigerians already electrified,” he said.
However, the Minister acknowledged that challenges such as vandalism of power infrastructure pose significant threats to the country’s electrification efforts.
“Pipelines, distribution equipment, and transmission towers have been targeted, causing supply disruptions and discouraging potential investors,” he said.
Through increased security, harsher sanctions, and better surveillance tools, the government is stepping up its efforts to stop vandalism in order to allay these worries.
Adelabu stressed that achieving Nigeria’s electrification target requires significant investments, with the private sector playing a key role in unlocking additional resources.
“The pact sets an investment target of $23.2 billion, of which $15.5 billion is expected to come from private investors.
“This will serve to enhance power production, bolster transmission and distribution systems, and incorporate decentralized renewable energy solutions,” he clarified.
Acknowledging the necessity for joint efforts, the government has urged development partners, philanthropists, and the private sector to back the initiative.
Adelabu reiterated, “Nigeria is positioning itself as a leader in Africa’s energy transition and creating opportunities for economic growth, job creation, and industrialization through the execution of the action plan outlined in the National Energy Compact.”
“Nigeria’s commitment to reforming the energy sector, enhancing infrastructure, and fostering investment will be vital in determining the future of electricity access throughout the continent as the Mission 300 initiative advances,” he added.
