The Federal Government of Nigeria has revealed plans to source part of the $10 billion needed to provide reliable electricity across the country over the next five to ten years from the private sector. This development was discussed during a courtesy visit by the Director General of the Infrastructure Concession Regulatory Commission (ICRC), Jobson Oseodion Ewalefoh, to the Minister of Power, Adebayo A. Adelabu, in Abuja on Tuesday.
A statement issued by Ifeanyi Nwoko, Acting Head of Media and Publicity, outlined that the two officials agreed on the need to involve the private sector in funding and providing expertise through Public-Private Partnerships (PPP). This approach, they noted, would be essential for advancing the power sector and ensuring optimal performance of existing infrastructure.
During the meeting, Dr. Ewalefoh emphasized that power is critical to Nigeria’s economic development, and optimizing the performance of current power infrastructure, as well as funding new projects, is crucial. He acknowledged that while funding is a key challenge, the sector’s issues are multifaceted and require a collaborative effort across agencies and with private sector involvement.
In response to the Minister’s comments, Dr. Ewalefoh explained that the ICRC, through its regulatory processes, could help attract private sector investment for part of the $10 billion needed to revamp the power sector. He added that the infusion of private sector capital would not only stabilize electricity supply but also stimulate foreign direct investment in other sectors, ultimately contributing to economic growth.
“Revamping the power sector requires careful planning, substantial investments, and time,” Dr. Ewalefoh said. “Government alone cannot fund this enormous investment, so we must leverage the financing capabilities of the private sector. This is where the ICRC plays a crucial role in regulating and facilitating these partnerships.”
The ICRC boss also commended the Minister for his extensive knowledge of the power sector, noting that President Buhari’s choice of Chief Adelabu for the role was highly commendable. He further emphasized that while the ICRC has streamlined processes to accelerate project delivery and attract investors to PPPs, the Commission remains committed to its regulatory role. It is crucial, he stressed, to avoid the risk of contingent liabilities or unnecessary delays by ensuring that only qualified companies are allowed to participate in these ventures.
In response, Minister Adelabu thanked Dr. Ewalefoh for the initiative to propose increasing private sector investment in Nigeria’s power sector through PPPs. He expressed his full support for the efforts and the role of the ICRC in facilitating such partnerships.
This collaboration is expected to play a pivotal role in addressing Nigeria’s power challenges and accelerating the development of critical infrastructure in the sector.
