The Federal Government has said Nigeria will require more than $100 billion in investments to deliver consistent, round-the-clock electricity across the country.
Minister of Power, Adebayo Adelabu, disclosed this during a briefing in Abuja, where he addressed recent declines in electricity supply and outlined plans to improve the sector. He acknowledged the challenges faced by Nigerians and assured that corrective steps are underway.
According to him, the estimated funding will cover the entire electricity value chain. Power generation alone would need about $30 billion to add 20,000 megawatts, while transmission infrastructure is projected to cost $20 billion. Distribution upgrades and gas pipeline development are expected to require roughly $25 billion and $22 billion respectively.
Adelabu explained that achieving this target would depend on phased investments involving both the government and private sector, stressing that sustained funding and patience are critical.
He noted that Nigeria’s large population makes its investment needs significantly higher compared to countries like South Africa, which is considering about $25 billion in private power sector funding.
Despite current setbacks, the minister highlighted progress recorded in recent years. Nigeria reached a peak power generation of 6,001 megawatts in 2025, alongside improvements in transmission capacity. Installed electricity capacity has also increased, supported by projects such as the Zungeru hydropower plant and expansion of renewable energy through mini-grids.
Financial reforms within the sector have also boosted revenue, with earnings rising significantly between 2023 and 2025. This improvement has enabled better payments to power generation companies and reduced the government’s subsidy burden.
Adelabu added that ongoing infrastructure upgrades are gradually improving electricity access, with plans to expand reliable power supply to a larger share of consumers in the coming years.
On the recent drop in power supply, he attributed the issue largely to gas shortages affecting most thermal power plants. He explained that many facilities depend on inconsistent gas supply, with only a few operating under firm supply agreements.
Other contributing factors include global energy disruptions, domestic supply obligations, outstanding payments to gas suppliers, and pipeline maintenance.
He called for stronger coordination among key government ministries and stakeholders to address these challenges and ensure steady progress.
The minister reiterated that achieving uninterrupted electricity in Nigeria will require long-term commitment, strategic investments, and collaboration across the public and private sectors.
