The Federal Government has called for increased private sector investment in Nigeria’s electricity industry, acknowledging that more than ₦10 trillion in public funds committed to the sector since its privatisation in 2013 has yet to deliver the reliable power supply expected from the reform.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, made the disclosure on Thursday at the sixth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja.
Anuwe said government interventions had helped keep the industry operational but stressed that public funding alone could not resolve the structural and financial challenges confronting the electricity market.
He called for stronger private sector participation and the adoption of alternative financing arrangements to accelerate infrastructure development, improve operational efficiency and attract the investment required to expand electricity supply.
The conference, themed ‘$1trn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply’, brought together industry stakeholders to examine the reforms and investments needed to support the country’s ambition of building a $1 trillion economy by 2030.
Nigeria’s electricity sector was privatised in 2013, with the distribution of electricity transferred to 11 privately owned distribution companies and six generation companies, while the Federal Government retained ownership of the transmission network.
The reform was designed to improve efficiency, attract private capital and reduce the financial burden on government. However, persistent electricity shortages, inadequate infrastructure, liquidity constraints and operational difficulties have continued to limit the sector’s performance.
Anuwe’s comments highlight the need to reassess the financing structure of the industry, particularly as the government faces competing demands on public resources.
The electricity sector requires substantial investment across generation, transmission and distribution, including the expansion and maintenance of power plants, gas infrastructure, transmission lines, substations and distribution networks.
Industry participants have also identified weak revenue collection, outstanding debts and inconsistent payment arrangements as factors discouraging investment and undermining the financial sustainability of operators.
The call for additional private capital comes as Nigeria seeks to improve electricity access, strengthen industrial productivity and reduce the cost of doing business.
For the sector to support the country’s economic growth ambitions, stakeholders say investment must be accompanied by commercially sustainable arrangements, effective regulation and improved coordination across the electricity value chain.
The Federal Government’s renewed emphasis on private financing therefore signals a recognition that sustained improvements in electricity supply will require more than public expenditure, with private investors expected to play a greater role in expanding infrastructure and improving service delivery.
