The Federal Government has stated that Nigeria requires over $100 billion in combined government and private sector investments in the power sector to achieve reliable, round-the-clock electricity supply.
Minister of Power, Adebayo Adelabu, made this known at a press conference in Abuja.
“Put together, we are talking of over $100bn of investments in the upstream, midstream, and downstream of the power sector value chain,” Adelabu said.
“This is not a figure to be underestimated, but it is achievable in phases, through a combination of government and private sector participation. Patience and consistent investment are key,” Adelabu stated.
He explained that the government has estimated that adding 20,000 megawatts of power generation would require approximately $30 billion, assuming an average of $1.5 billion per 1,000MW plant.
According to the minister, transmission infrastructure to evacuate this power would require $20 billion, while distribution and gas pipeline investments would require roughly $25 billion and $22 billion, respectively.
Adelabu noted that while South Africa, with a population of about 60 million, contemplates a $25 billion private sector investment in its power sector, Nigeria’s larger population of over 200 million necessitates proportionally higher investments.
