Over N10trn invested in power sector since privatisation – FG

–Seeks private sector led growth By Obas Esiedesa, Abuja The Federal Government has called for increased private sector investment in the electricity industry, saying over N10 trillion spent on the sector since privatisation has not been sufficient to address its infrastructure and financing challenges. Managing Director/Chief Executive Officer, FGN Power Company Limited, Mr Kenny Anuwe, made the call on Thursday at the sixth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja.

Anuwe, who delivered the keynote address at the conference themed, “$1 Trillion Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply”, said government funding alone could not provide the scale of investment required to support Nigeria’s ambition of becoming a $1 trillion economy. He said: “The government has invested over N10 trillion in the electricity sector since the advent of privatisation.

But is it enough? How much money is enough? If the government didn’t invest that money, the industry would not be standing today.” However, he lamented that the government still accounted for more than 95 per cent of new infrastructure investments in the sector, describing the situation as unsustainable. According to him, the industry must move away from overdependence on public funding by creating an investment-friendly environment that would attract private capital.

“We need to change our minds about the reality that the government cannot do everything. The government can provide the enablers, infrastructure, delivery and market conditions under which public and private capital can perform effectively,” he said. Anuwe called for simplified institutional and regulatory arrangements, clear responsibilities, predictable regulations, bankable projects and faster decision-making to encourage investors.

He disclosed that FGN Power Company was targeting a $2.3 billion investment programme, comprising $1.3 billion from Europe and $1 billion from China. He added that the company was working towards raising at least $1 billion in capital, with the Africa Finance Corporation indicating willingness to match the amount, while additional financiers were expected to mobilise about $18 billion into the electricity sector.

The FGN Power boss said the company was also exploring alternative financing arrangements, including viability financing and blended finance, to attract institutional and private investors. On infrastructure development, he said the Presidential Power Initiative had completed its pilot phase and was implementing the first phase of transmission substations and lines, with most of the projects expected to be completed in the first quarter of 2027.

He said the second batch of Siemens substations, comprising 12 facilities, was expected to commence in the fourth quarter of 2026, subject to necessary financing approvals. According to him, ongoing and planned interventions are expected to deliver an additional 5,540 megawatts by 2029 and improve grid reliability by at least 60 per cent, while enabling about 2,000 industries to return to the national grid.

Earlier, the Minister of Power, Joseph Tegbe, said the Federal Government had approved a N3.3 trillion plan to settle verified legacy debts owed to electricity generation companies, with N1.23 trillion already raised. Tegbe, who was represented by his Special Adviser, Administration and Projects, Mr. Martins Olajide, said the intervention was aimed at easing financial pressures on generation companies and improving their capacity to pay gas suppliers and maintain their plants.

He disclosed that over 2.8 million electricity customers had been metered under the Presidential Metering Initiative, while additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026. The Minister said the government was implementing a four-pronged roadmap covering grid stabilisation, sector liquidity and sustainability, asset optimisation, and expansion and enhancement of the national grid.

He identified Lagos-Ogun, Benin-Enugu-Port Harcourt and Abuja-Kaduna-Kano as priority economic corridors where electricity generation, transmission and distribution capacity would be aligned to support industrial activities. Tegbe also identified vandalism of electricity infrastructure as a major challenge, disclosing that President Bola Tinubu had approved a coordinated anti-vandalism campaign involving security agencies to protect critical power assets.

In his welcome address, PCAN Chairman, Mr Obas Esiedesa, said reliable and affordable electricity was fundamental to achieving the Federal Government’s $1 trillion economy target by 2030. He called for urgent measures to address seasonal declines in electricity generation, particularly between November and March, when reduced water inflows into hydroelectric stations and gas supply constraints to thermal plants often worsen electricity supply.

Esiedesa also urged st