The Nigerian government has launched a $23.2 billion programme to improve access to electricity, aiming to address the country’s ongoing power crisis.
Of this, $15.5 billion is expected to come from private sector investments.
Power Minister Adebayo Adelabu introduced the plan, which focuses on expanding electricity access and boosting the use of renewable energy.
This initiative follows commitments made at the recent Mission 300 Africa Energy Summit in Tanzania, where the goal was set to provide electricity to 300 million people across Africa by 2030.
According to a statement from the minister’s spokesperson, Bolaji Tunji, the National Energy Compact was outlined, with specific targets for improving Nigeria’s power sector.
“The compact outlines a $23.2bn investment target, with $15.5bn expected from private investors. These funds will be directed towards expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewable energy solutions,” the statement read.
These include increasing electricity access by 4% to 9% every year, raising clean cooking access from 22% to 25% annually, and growing the share of renewable energy in the country’s power supply from 22% to 50%. The plan also aims to attract private investment to help achieve these goals.
Despite having the largest population in Africa, Nigeria faces major challenges with its electricity supply, generating only 4,500MW at present. Efforts to increase output to 6,000MW in 2024 have been delayed due to frequent grid failures and infrastructure damage.
As a result, over 250 companies have chosen to produce their own electricity rather than rely on the national grid.
Minister Adelabu acknowledged these difficulties, especially the damage caused by vandalism, which disrupts supply and discourages investment. In response, the government is enhancing security, introducing tougher penalties, and using technology to protect critical power infrastructure.
He also highlighted the importance of private sector involvement in expanding power generation, upgrading transmission networks, and integrating renewable energy sources.
The government is calling on development partners and investors to support the energy compact, with the aim of positioning Nigeria as a leading player in Africa’s energy transition.
The $23.2 billion plan is expected to boost economic growth, create jobs, and aid industrial development. Through the National Energy Compact, Nigeria hopes to transform its power sector and set an example for sustainable energy development across Africa.
