Nigeria’s Government Calls for Private Investment in Power Sector Amid Massive Spending

The Federal Government of Nigeria has invested more than N10 trillion in the country’s electricity sector since it was privatized in 2013. However, officials say this investment has not yet led to the reliable power supply that was expected from the reform.

Kenny Anuwe, the Managing Director of FGN Power Company Limited, spoke at a conference in Abuja on Thursday. He emphasized that while government funding has been crucial in keeping the industry running, it is not enough to solve the ongoing electricity challenges. Anuwe called for more involvement from private investors and alternative funding methods to help develop the necessary infrastructure.

The conference was centered around Nigeria’s goal of achieving a $1 trillion economy by 2030 and included discussions on the country’s plans for reliable and affordable electricity. Since the privatization, the government has transferred ownership of 11 distribution companies and six generation companies to private investors, but it still controls the transmission network.

Despite government efforts, electricity supply remains unstable due to issues like inadequate generation, gas shortages, and weak infrastructure. Anuwe pointed out that while the government has invested heavily, it has been responsible for over 95% of new infrastructure investments, which is not what privatization aimed to achieve.

To attract private investment, Anuwe suggested that Nigeria needs simpler investment structures, clearer regulations, and projects that are commercially viable. The FGN Power Company is looking to secure $18 billion from investors and plans to capitalize the company with at least $1 billion.

Joseph Tegbe, the Minister of Power, also spoke at the conference, outlining a four-part plan to tackle the sector’s challenges. This includes stabilizing the grid, improving financial sustainability, optimizing assets, and expanding the national grid. He mentioned that the government has raised N1.23 trillion to pay off debts owed to electricity generation companies and has made progress in metering customers and increasing transmission capacity.