The Federal Government has spent more than N10tn on Nigeria’s electricity sector since privatisation, with public funding continuing to account for most new infrastructure investment.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed that the government provided more than 95 per cent of new investments in electricity infrastructure despite efforts to encourage private sector participation.
Anuwe made the disclosure at the sixth annual conference of the Power Correspondents Association of Nigeria in Abuja.
FG questions electricity financing structure
Speaking at the conference, Anuwe argued that Nigeria’s electricity industry remained heavily dependent on public funding more than a decade after privatisation.
He explained that the limited participation of private investors had weakened one of the main objectives of the 2013 reform.
According to him, the electricity sector required a more sustainable financing structure capable of attracting substantial private capital.
He maintained that government funding alone would be insufficient to meet the country’s growing electricity demand.
Presidential power initiative targets 5,540MW
Anuwe disclosed that the Presidential Power Initiative was targeting an additional 5,540 megawatts of electricity capacity by 2029.
The programme is also expected to improve grid reliability by at least 60 per cent.
He explained that the planned interventions could support efforts to reconnect approximately 2,000 industries to the national grid.
The target forms part of broader efforts to improve electricity transmission and strengthen industrial productivity.
Private investment remains critical
The conference, themed around Nigeria’s ambition to achieve a $1tn economy, highlighted the importance of affordable and dependable electricity.
Anuwe argued that stronger participation by private investors would help address infrastructure gaps and reduce the financial burden on the government.
Electricity supply remains a major concern for Nigerian businesses, many of which depend on generators and alternative power sources.
Unreliable supply can increase operating costs and discourage industrial investment.
The government is seeking greater private participation to support electricity infrastructure expansion.
However, the announced additional capacity, grid improvements and industrial reconnections remain future targets rather than completed achievements.
