Nigeria will require about $10 billion to address the challenges in the country’s power sector and guarantee reliable electricity supply, Minister of Power, Chief Adebayo Adelabu, has said.
This amount is equivalent to almost a third of Nigeria’s national budget, prompting Adelabu to question whether the nation can commit such a huge sum to the power sector, considering other critical sectors like defense, education, and health also need interventions.
Adelabu explained that a turnaround in the power sector would require foreign and local investors, as well as the Federal and State Governments, to make the necessary investments.
“We need about $10 billion, which is about N63 trillion… Can we afford to put that alone in the power sector? There must be some level of investment flow locally by investors and even foreign investment flows for this sector to be turned around,” he said during the Nigerian Electricity Regulatory Commission (NERC) retreat.
The Minister also highlighted that the Federal Government owes over N200 billion in electricity debt.
Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power, elaborated on the debt burden, stating that the tariff shortfall means the government owes N200 billion monthly.
With no payments made since 2025, the debt burden this year stands at N800 billion, adding to an existing N3 trillion debt owed to generating companies.
Akwa Ibom State Governor, Pastor Umo Eno, emphasized that while power is a catalyst for economic growth, Nigeria currently faces significant challenges in the sector.
He stressed the need for a steady electricity supply to unlock the potential of Small and Medium Enterprises (SMEs), which drive economic growth in most societies
Source:https://energynewsafrica.com
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