Nigeria needs $10bn yearly for power — Minster

…FG seals N5.8bn renewable deal

To achieve stable electricity nationwide, Nigeria needs at least $10 billion in annual investments over the next 10 to 20 years, according to the Federal Government.

Minister of Power, Adebayo Adelabu, disclosed this during the commissioning of a 2.5MW Solar Hybrid Power Plant at the Nigerian Defence Academy in Kaduna.

Adelabu noted that while funding is crucial, real transformation also depends on resolving foundational issues in the sector, including outdated infrastructure, a wide metering gap, and policy limitations.

He lauded the signing of the Electricity Act as a major milestone, which now allows state and local governments to actively participate in power generation, transmission, and distribution, a decentralization he said will fast-track improvements.

“We must also address a 50 per cent metering gap and revive the transmission grid, which has suffered decades of underinvestment,” he said, adding that a presidential initiative is targeting the installation of 18 million meters within five years.

Meanwhile, the Federal Government, through the Rural Electrification Agency (REA), has secured a fresh N5.8 billion private sector investment through new agreements with 32 renewable energy firms.

The deal, under the third call of the Rural Electrification Fund (REF), aims to power off-grid communities and boost clean energy access.

At a signing ceremony in Abuja, REA’s Managing Director, Abba Aliyu (represented by Executive Director. Corporate Services, Ayoade Adegboyega), said the REF has already delivered 16.6MW of renewable capacity, created over 26,000 jobs, and avoided more than 91,000 tonnes of CO₂ emissions.

The fund has also supported 124 mini-grids, over 25,000 solar home systems, and empowered more than 18,000 MSMEs in 183 communities across all states and the FCT.

Other REA-led programmes like the Interconnected Mini-grid Acceleration Scheme (IMAS), GCIP, and DSOLS were also praised as models of bold execution driving energy access nationwide.