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The Nigerian government is set to partner with the private sector to bridge the $10 billion funding gap needed to overhaul the country’s power sector over the next five to ten years.
The announcement was made following a meeting between the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Oseodion Ewalefoh, and the Minister of Power, Chief Adebayo A. Adelabu, in Abuja on Tuesday, November 12.
Dr. Ewalefoh emphasised the crucial role of private sector involvement in the revitalisation of the power sector.
"The investment required in power is very huge and government cannot fund it alone, so we have to leverage on the financing capacity of the private sector. That is why the ICRC was set up to regulate this leverage," he said.
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With Nigeria’s electricity infrastructure in dire need of upgrades, the government has identified Public-Private Partnerships (PPP) as a key mechanism to secure the necessary investments and expertise.
The Minister of Power echoed this sentiment, explaining that achieving 24-hour power supply in the country requires substantial investment, which government alone cannot provide.
"For us to achieve 24 hours power supply across Nigeria in the next 5 to 10 years, there is a minimum funding requirement of about $10 billion. The government cannot afford that, when there are other critical sectors in need of funding. We need to do this in collaboration with the private sector and the best way is through concession," Adelabu noted.
Both officials agreed that optimising the performance of existing infrastructure and financing new projects will require close collaboration between public and private entities.
The ICRC, which regulates PPP initiatives, is committed to ensuring that the processes for attracting private sector investment are streamlined and effective.
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As Dr. Ewalefoh outlined, the commission’s six-point policy direction aims to accelerate project delivery and safeguard against delays caused by ill-prepared companies.
In response to concerns about the integrity of the process, Dr. Ewalefoh reassured that the ICRC would maintain stringent regulatory measures to prevent defaulting bidders.
"We are insisting on inserting conditions precedent to all PPP agreements so that any preferred bidder that defaults will have their agreement automatically nullified," he stated.
This initiative is seen as a critical step toward revitalising Nigeria's power sector and improving the nation’s electricity supply.
With the backing of the private sector, the government hopes to attract foreign direct investment, boost economic growth, and ultimately provide Nigerians with regular, reliable power.