The Federal Government has revealed that Nigeria requires over $100 billion in combined public and private sector investments to achieve a stable, round-the-clock electricity supply.
Speaking at a press conference in Abuja, the Minister of Power, Adebayo Adelabu, acknowledged the recent decline in electricity supply across the country, apologising to Nigerians and assuring them of swift corrective actions.
“Put together, we are talking of over $100bn of investments in the upstream, midstream, and downstream of the power sector value chain,” Adelabu said, noting that the funding would be deployed in phases through collaboration between the government and private investors.
He explained that adding 20,000 megawatts of generation capacity alone would require about $30bn, while transmission infrastructure would need $20bn. Distribution upgrades and gas pipeline development are projected to cost $25bn and $22bn, respectively.
Adelabu compared Nigeria’s needs with that of South Africa, which is considering $25bn in private sector investments for its power sector, noting that Nigeria’s population size demands significantly higher funding.
Despite ongoing challenges, the minister highlighted key milestones achieved since the current administration took office in September 2023. He said Nigeria recorded a historic generation peak of 6,001MW in April 2025 and a transmission peak of 5,801MW in March 2025.
These gains, according to him, were driven by projects such as the completion of the Zungeru Hydroelectric Power Station, rehabilitation of thermal plants, and expansion of renewable energy through mini-grids.
Installed generation capacity has increased from 13,000MW in 2023 to 14,400MW in 2025. Financially, the government has undertaken a N4tn debt restructuring to settle outstanding obligations to power generation companies, with N501bn already raised from the bond market and disbursed.
The introduction of cost-reflective tariffs for about 15 per cent of consumers has also boosted sector revenue, which rose from N1tn in 2023 to N2.3tn in 2025. This improvement has enabled payments to generation companies to increase significantly, reducing reliance on government subsidies.
Adelabu noted that Nigeria’s national grid capacity has improved, now able to wheel up to 8,500MW compared to 5,000MW in 2023, with a target of 15,000MW within three years under initiatives such as the Presidential Power Initiative.
He added that infrastructure upgrades have reduced grid collapses from an average of 12–15 annually to just four in the past two and a half years.
However, the minister attributed recent power shortages largely to gas supply constraints, which affect about 75 per cent of Nigeria’s gas-fired power plants.
“Even the best turbines cannot operate without raw materials,” he said, citing global gas supply disruptions, local obligations, unpaid debts to suppliers, and pipeline maintenance as contributing factors.
Adelabu disclosed that only two out of Nigeria’s 32 power plants currently have firm gas supply agreements, with the rest relying on irregular supplies.
He called for stronger coordination among key government bodies and stakeholders to address the challenges and ensure sustainable improvements across the sector.
Reaffirming the government’s long-term vision, Adelabu said achieving uninterrupted electricity supply would require sustained investment, strategic planning, and collaboration.
“We see 24-7 electricity not as a destination, but as a journey,” he said, expressing confidence that Nigeria can attain reliable power supply through consistent reforms and private sector participation.
