- The Federal Government has unveiled a $23.2 billion programme to close electricity gaps
- The private sector will provide $15.5 billion of the funds for the programme
- The programme aims to position Nigeria as a leader in Africa’s energy transition
The Federal Government has unveiled a $23.2 billion energy access programme aimed at transforming the nation’s energy sector and closing the country’s electricity gap
According to a statement by Bolaji Tunji, the spokesman for the Minister of Power, the programme will be spearheaded by the minister, Adebayo Adelabu.
The statement added that out of the $23.2 billion, $15.5 billion would be provided by the private sector.
It noted that the initiative is a direct outcome of the recently concluded Mission 300 Africa Energy Summit held in Dar es Salaam, Tanzania, which aims to accelerate electricity access for 300 million Africans by 2030.
The two-day summit brought together African leaders, business executives, and development partners, and was hosted by the Government of Tanzania, the African Union, the African Development Bank Group, and the World Bank Group.
The statement read, “Through the energy access programme, tagged the National Energy Compact, the government aims to increase electricity access from four per cent to nine per cent annually, boost access to clean cooking solutions from 22 per cent to 25 per cent annually, expand renewable energy’s share in the power generation mix from 22 per cent to 50 per cent, and mobilise $15.5 billion in private investment to drive last-mile electrification.”
Programme to position Nigeria as leader in Africa’s energy transition
The Minister of Power further noted that the energy access programme aims to position Nigeria as the leader in Africa’s energy transition plans through massive investment in power infrastructure, among others.
Adelabu said Nigeria’s commitment to energy sector reforms is crucial in shaping the future of electricity access across the continent.
He said, “The compact outlines a $23.2 billion investment target, with $15.5 billion expected from private investors. These funds will be directed toward expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewable energy solutions.
“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.”
Challenges to Nigeria’s electrification efforts
Adelabu noted challenges such as liquidity threats, vandalism of power infrastructure like targeted attacks on transmission towers, pipelines, and distribution equipment, and frequent grid collapses that disrupt power supply and discourage potential investors.
Recall that the minister said the government aims to achieve 6,000 MW of power by the end of 2024 through a combination of hydroelectric and gas-fired power plants.
Adelabu also said the government targets to generate, transmit and distribute 30 gigawatts (GW) by 2030, 30 per cent of which will be renewable energy.
However, this was not achieved before the end of the year due to factors such as vandalisation of power infrastructure including transmission towers, which cost N8.8 billion to repair in 2024 alone.
He expressed concern that transmission towers, pipelines, and distribution equipment are being targeted, disrupting supply and discouraging potential investors.
The minister stressed that protecting power assets is crucial to ensuring an uninterrupted electricity supply and sustaining progress.
He added that the government is intensifying efforts to curb vandalism through enhanced security measures, stricter penalties, and improved surveillance technologies.
Tinubu announces that $3.25bn has been invested in Nigeria's power sector
Meanwhile, TheRadar earlier reported that President Bola Tinubu announced that Nigeria is leveraging over $3.25 billion in foreign investment to ensure a steady and reliable power supply for 23.7 million people across the country.
This investment, which includes contributions from the African Development Bank (AfDB) and the World Bank, is central to Nigeria’s ongoing efforts to electrify its most remote and hard-to-reach communities, with a focus on achieving energy equity.
