Adebayo Adelabu Seeks $10 Billion Private Sector Investment to Revitalize Power Sector

Minister of Power seeks private sector involvement in raising $10bn to fix power sector

“The scale of investment needed is immense, and the government cannot shoulder it alone...”

Minister of Power, Adebayo Adelabu, is calling for private sector involvement to raise $10 billion to fix Nigeria's power sector, aiming for 24-hour electricity supply. This move acknowledges that government funding alone cannot meet the sector's needs. Adelabu emphasized the importance of collaboration with the private sector to achieve this goal.

Nigeria's Federal Government has announced that it requires $10 billion in investments through Public-Private Partnerships (PPP) over the next five to ten years to ensure a continuous 24-hour power supply. This revelation came from Minister of Power, Adebayo Adelabu, during a visit from Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC).

Government's Financial Limitations

The government acknowledges that it cannot solely finance the $10 billion required, especially considering the need for funding in other critical sectors. Adelabu emphasized, “The government cannot do this alone... We must seek organized private sector funding, while still maintaining government interest and ownership.”

Private Sector Partnership

To achieve this goal, the government is seeking private sector investment to bridge the funding gap. This partnership aims to provide a sustainable solution to Nigeria's power challenges, ensuring a reliable 24-hour power supply.

Major Objectives

Address Power Sector Challenges: Provide 24-hour electricity supply to drive economic growth

Private Sector Partnership: Leverage organized private sector funding while maintaining government interest and ownership

Regulatory Framework: Work with the ICRC to regulate private sector involvement and ensure successful implementation.

“The government cannot do this alone. This is why we must seek organized private sector funding, while still maintaining government interest and ownership, Adelabu stated.

He added, “This is where the ICRC comes in. Collaboration with the private sector is essential, and the most effective approach is through concessions.”

Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), stressed the urgent need for private sector involvement to revamp Nigeria's power sector. He emphasized that power plays a vital role in the nation's economic growth, making it crucial to optimize existing infrastructure and secure funding for new projects.

Ewalefoh acknowledged the sector's numerous challenges, which can no longer be addressed by federal government funding alone. To overcome these limitations, he advocated for inter-agency collaboration and partnerships with the private sector. The ICRC's regulatory processes can facilitate private sector investment to contribute to the $10 billion needed for a stable electricity supply.

Strategies for Power Sector Improvement:

Optimize Existing Infrastructure: Enhance current power infrastructure to increase efficiency

Secure Funding for New Projects: Attract private sector investment to support new power projects

Inter-Agency Collaboration: Foster cooperation among government agencies to streamline processes

Private Sector Partnerships: Leverage public-private partnerships to access expertise and funding

Regulatory Support: Utilize ICRC's regulatory processes to facilitate private sector investment

By implementing these strategies, Nigeria can bridge the funding gap and ensure a reliable power supply, ultimately boosting the nation's economy. The ICRC's efforts can also attract foreign direct investment to other sectors, further driving economic growth.

“Revitalizing the power sector requires careful planning, Investments, and time. substantial

“Therefore, collaboration is essential to addressing the sector's challenges, he said.

“The scale of investment needed is immense, and the government cannot shoulder it alone, so we must leverage the financing capacity of the private sector.”

Mr. Ewalefoh commended the Minister for his in-depth understanding of the sector, acknowledging that President Bola Tinubu made an excellent choice in appointing him. This endorsement recognizes the Minister's exceptional expertise and ability to drive progress in the sector.

The Director-General also highlighted the commission's efforts to expedite Public-Private Partnerships (PPPs) investments, in line with the President's directive. To achieve this, the commission introduced a comprehensive six-point policy framework aimed at streamlining PPP service delivery. This strategic move ensures a more efficient and effective partnership process.

Objectives of the Policy Framework:

Enhance Efficiency: Streamline PPP service delivery to foster growth and development

Prevent Liabilities: Maintain strict regulatory standards to avoid potential risks and delays

Ensure Capacity: Verify companies' capabilities to undertake projects, preventing capacity-related issues

By implementing this framework, the commission demonstrates its commitment to responsible governance and sustainable partnerships. Mr. Ewalefoh emphasized that the commission will maintain its rigorous regulatory role, safeguarding against potential liabilities and delays caused by companies lacking necessary capacity.