Nigeria Seeks to Secure N1.1bn Private Investment for Power Sector Revamp
Nigeria’s Federal Government is making strides to catalyse N1.1 billion in private sector funding to bolster the country’s power sector, according to the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu. Speaking at the Nigeria Energy Summit in Lagos, Aliyu detailed the government’s ambitious plans to attract investment and diversify the country’s energy sources to close the widening electricity gap.
“Apart from the $750 million already provided by the current administration, we expect that sum to leverage an additional N1.1 billion in private sector funding as a co-financing requirement. We don’t finance the entire infrastructure cost; instead, we offer grants and subsidies to trigger private sector engagement,” Aliyu said.
The summit, organised by Informa Markets under the theme “Breaking Barriers to the New Energy Era: Clean, Reliable and Sustainable,” saw industry leaders discussing ways to unlock Nigeria’s renewable energy potential. The REA’s focus is on integrating various energy sources, including solar, hydro, biomass, and wind, into Nigeria’s grid. Aliyu hinted that tenders for a 336-kilowatt micro-hydro plant will be issued within weeks, alongside projects earmarked in several states, including Katsina, Ondo, and Cross River.
Solar power, Aliyu added, remains a critical tool in Nigeria’s quest for energy access. “We have interconnected 1.5 million Nigerians through mini-grids and provided electricity to 3 million more via isolated grids,” he noted, highlighting the agency’s broader mission to boost energy reliability and sustainability.
The summit underscored the importance of financial viability for private sector players in Nigeria’s energy sector. Aliyu stressed that the long-term success of mini-grid and off-grid solutions hinges on the financial health of the companies involved. “Whether it’s off-grid or large-scale infrastructure, the sustainability of these projects is determined by the financial viability of the implementers,” he explained.
Hakeem Disu, co-founder of Lihon Energy, praised Nigeria’s progress in the energy transition, noting that the country is leading the way in Africa. “The mini-grid and solar systems being rolled out by the Rural Electrification Agency are improving the livelihoods of people in rural areas. This initiative not only benefits communities but also boosts investor confidence,” Disu said, citing the role of carbon credits in attracting further investment to rural projects.
Ade Yusuf, Exhibition Director of Informa Markets, noted that Africa is increasingly seen as a key player in the global energy conversation. “Africa’s natural resources and growing appetite for innovation have made it a supply house for global economic growth. This summit is now focused on renewable energy and energy efficiency as part of the continent’s energy transition,” he said.
As Nigeria grapples with its energy challenges, the government’s push for public-private partnerships offers a potential lifeline, with hopes that new investment and technological innovation will accelerate progress in clean and reliable energy. However, the success of these plans will depend on the ability to sustain momentum and build a financially resilient energy sector capable of powering the country’s future.
