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The Federal Government of Nigeria has revealed plans to collaborate with the private sector to raise a part of the $10 billion needed to ensure continuous and reliable power supply across the country.
The initiative is part of the government's broader strategy to address the country's chronic power supply challenges and is expected to take five to ten years.
This was the focus of discussion when the Director General of the Infrastructure Concession Regulatory Commission, Dr. Jobson Oseodien Iwalefoh, paid a courtesy visit to the Minister of Power, Adebayo Adelabu in Abuja.
A statement by the Acting Head of Media and Publicity, Ifeanyi Nwoko, on Wednesday revealed that both officials agreed that given the funding and technical requirements needed to advance Nigeria's power sector, through public-private It has become imperative to seek private sector participation. Partnership for co-financing and expertise to ensure optimal performance of electricity infrastructure.
Last week, the power minister had ordered immediate replacement of old equipment as part of recommendations to prevent the continuing collapse of the national grid.
He said additional funding from the 2024 supplemental budget and the 2025 appropriations bill will be needed to address the financial implications of the strategies needed to prevent ongoing grid collapse.
During the meeting, the Minister revealed that Nigeria needs at least $10 billion in the next ten years to achieve 24-hour power supply across the country.
“A minimum of $10 billion in funding is required to achieve 24-hour power supply across Nigeria within the next five to ten years,” he said. Given the financial needs of other critical sectors, the government cannot afford this alone.
“Can the government do it alone? No! That is why we need to control private sector funds while maintaining government interest and ownership. This is where the ICRC comes in. We need to collaborate with the private sector and the best way to do this is by giving concessions.
Responding to the Minister's statement, the Director-General said that through its regulatory processes, the ICRC can facilitate private sector investment in part of the $10 billion needed to reform the power sector, more directly in other sectors. Can attract foreign investment and ultimately provide economic stimulus. Development.
The ICRC Director-General acknowledged that while funding is important, the challenges facing the power sector are complex and extend beyond finance.
However, with inter-agency collaboration and private sector involvement, these limitations can be addressed.
“Power sector reforms require planning, investment and time,” he said. We need to cooperate to resolve issues in this area. The investment required is huge, and the government cannot finance it alone, so we must leverage the financial capacity of the private sector. That is why the ICRC was established to regulate this leverage.
The Commission is committed to regulate the processes of attracting investments in the power sector.
He commended the Minister for his extensive knowledge of the region and said President Bola Tinubu’s choice of him was commendable.
Iwalefoh said that as directed by President Tinubu, to accelerate PPP investment, the Commission had issued a six-point policy directive which has streamlined the PPP process for service delivery.
The Director General emphasized that although the processes have been streamlined to expedite project delivery and encourage investors to adopt the PPP model, to prevent contingent liabilities or unnecessary delays by companies lacking the necessary capacity. The Commission remains vigilant in its regulatory work.
Iwalefoh also noted that the Commission now insists on including precedential conditions in all PPP agreements, stipulating that any preferred bidder who defaults on the terms of the agreement will automatically forfeit its contract. Will be cancelled.
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