Nigeria Requires Over $100 Billion in Investment to Achieve 24-Hour Electricity, FG says

The Nigerian Federal Government has announced that it requires over $100 billion in combined public and private investment to achieve a reliable, round-the-clock electricity supply. Minister of Power, Adebayo Adelabu, disclosed this figure during a press conference in Abuja, outlining that the funds would cover the entire power sector value chain. He broke down the investment needs, estimating that $30 billion is needed to add 20,000 megawatts of generation capacity, $20 billion for transmission infrastructure, $25 billion for distribution networks, and $22 billion for gas pipeline development. Adelabu emphasized that while this figure is substantial, it is achievable through a phased approach involving both government and private sector participation.

Addressing recent declines in electricity supply, the minister apologized to Nigerians and attributed the shortages primarily to gas supply constraints affecting the country’s gas-fired plants. He explained that global gas market disruptions, local supply obligations, outstanding debts to gas suppliers, and pipeline repairs have all contributed to the generation shortfall. Currently, only two out of 32 power plants have firm gas supply contracts, with the majority operating on an irregular, best-effort basis. Adelabu called for coordinated action between the Ministries of Power, Petroleum, Water Resources, and Environment to resolve these issues.

Despite current challenges, the minister highlighted significant milestones achieved since the administration took office in September 2023. He noted that Nigeria achieved a record generation peak of 6,001 megawatts in April 2025 and a transmission peak of 5,801 megawatts in March 2025. These gains were facilitated by the completion of the 700MW Zungeru hydroelectric plant, the rehabilitation of existing thermal facilities, and the expansion of renewable energy through mini-grids. He also reported that installed capacity has increased from 13,000MW in 2023 to 14,400MW in 2025.

The government has also made progress in addressing the sector’s long-standing liquidity issues through financial interventions and tariff reforms. A N4 trillion debt restructuring program has been initiated to clear outstanding subsidies, with N501 billion already raised from the bond market and disbursed. The introduction of cost-reflective tariffs for about 15% of consumers has significantly boosted revenue, which grew from N1 trillion in 2023 to N2.3 trillion in 2025. This has enabled payments to generation companies to increase from just 9% to between 35% and 40% of invoices, thereby reducing the government’s subsidy burden.

In conclusion, the minister outlined a vision for steady, long-term progress, noting that infrastructure upgrades have already reduced grid collapses from an average of 12–15 per year to just four over the last two and a half years. He stated that the national grid can now wheel up to 8,500MW, up from 5,000MW in 2023, with a target of 15,000MW within three years. Adelabu described the goal of 24-hour electricity as a journey rather than a destination, asserting that with phased investments, inter-ministerial coordination, and sustained private sector engagement, Nigeria can attain a reliable power supply for all its citizens.