Nigeria’s Minister of Power, Adebayo Adelabu, announced on May 13, 2025, during a ministerial briefing in Abuja that the country needs an annual investment of $10 billion for the next decade to achieve a stable and reliable power supply, addressing a critical barrier to economic growth. The revelation underscores the government’s renewed push to overhaul the nation’s beleaguered electricity sector.
Nigeria, with a population of 230 million, generates only 4,000–5,000 megawatts (MW) against a demand of 30,000 MW, resulting in frequent blackouts that cost the economy $28 billion annually. Adelabu outlined that the $10 billion would fund infrastructure upgrades, including 100,000 MW generation capacity, transmission line expansions, and distribution network modernization. The plan aligns with the 2020–2025 National Broadband Plan, which aims to leverage improved power for 70% broadband penetration. In 2024, the government spent $2 billion on power projects, including 700 MW from the Zungeru Hydro Plant, but funding gaps persist due to a 40% revenue shortfall in the sector.
The minister emphasized private sector involvement, citing the Presidential Power Initiative with Siemens, which has delivered 2,000 MW since 2023. Plans include $3 billion for solar mini-grids to electrify 25 million rural households and $4 billion for gas-fired plants, leveraging Nigeria’s 200 trillion cubic feet of gas reserves. However, challenges include vandalism, with 130 transmission towers destroyed in 2024, and a $1.2 billion debt to gas suppliers, hindering generation. Adelabu also highlighted tariff reforms, with a 2024 hike increasing revenue by 50%, though 60% of consumers remain unmetered, fueling inefficiencies.
The government aims to attract foreign investment through tax incentives and a $500 million World Bank loan for smart grids. Critics note that corruption, with $16 billion misallocated to power projects between 1999 and 2015, and a 15% transmission loss rate, must be addressed. Adelabu’s target of 20,000 MW by 2030 requires policy consistency, as Nigeria’s 33% electrification gap contrasts with peers like Ghana (85%). The $10 billion plan, if realized, could transform industries, where 70% of businesses rely on costly generators, but execution remains a formidable hurdle.