Blackout: Nigeria Needs $100bn to Fix Power Crisis – FG

The Federal Government has disclosed that Nigeria will require over $100 billion (about N160 trillion) in combined public and private investment to achieve a stable, round the clock electricity supply.

Speaking at a press briefing, the Minister of Power, Adebayo Adelabu, acknowledged the recent decline in electricity supply nationwide, apologising to Nigerians and assuring that urgent corrective measures are underway.

According to him, the investment will span the entire power value chain, covering generation, transmission and distribution.

“Put together, we are talking of over $100bn of investments across the upstream, midstream and downstream segments of the power sector,” Adelabu said, noting that while the figure is substantial, it can be realised through phased implementation and strong private sector participation.

He explained that adding 20,000 megawatts (MW) of power would cost approximately $30 billion, based on an estimated $1.5 billion per 1,000MW plant. Transmission infrastructure would require about $20 billion, while distribution networks and gas pipelines are projected to cost $25 billion and $22 billion respectively.

Drawing comparisons, the minister noted that South Africa, with a population of around 60 million, is targeting $25 billion in private energy investments. Nigeria’s population of over 200 million, he said, necessitates significantly higher funding.

Despite current challenges, Adelabu highlighted progress made since the present administration assumed office in September 2023. He revealed that Nigeria recorded a historic generation peak of 6,001MW in April 2025 and a transmission peak of 5,801MW in March 2025.

These gains, he said, were driven by the completion of the Zungeru Hydropower Plant, rehabilitation of thermal plants and expansion of renewable energy through mini grids.

Installed capacity increased from 13,000MW in 2023 to 14,400MW in 2025. Financially, the sector has also seen reforms, including a N4 trillion debt restructuring initiative aimed at settling unpaid subsidies owed to power generation companies. So far, N501 billion has been raised through the bond market.

The introduction of cost reflective tariffs for about 15 per cent of consumers has also boosted sector revenue, which rose from N1 trillion in 2023 to N2.3 trillion in 2025. This improvement enabled payments to generation companies to increase from 9 per cent to between 35 and 40 per cent of their invoices, significantly reducing subsidy burdens.

Adelabu further explained that the government’s phased upgrade plan across service bands aims to expand access to reliable electricity, with a target of reaching 60 to 70 per cent of consumers within a few years.

He added that the national grid’s capacity has improved from 5,000MW in 2023 to 8,500MW, with a target of 15,000MW within three years under ongoing projects, including the Presidential Power Initiative.

According to him, these upgrades have reduced grid collapses from an average of 12 to 15 annually to just four in the past two and a half years.

The minister attributed the recent drop in power supply largely to gas constraints affecting about 75 per cent of Nigeria’s gas fired plants.

“Even the best turbines cannot operate without gas,” he said, citing global supply disruptions linked to the Middle East crisis, domestic supply challenges, unpaid obligations to gas suppliers and pipeline maintenance issues.

He disclosed that only two out of Nigeria’s 32 power plants currently have firm gas supply agreements, with others relying on inconsistent supply arrangements.

Adelabu called for stronger coordination among key ministries, including Power, Petroleum, Water Resources and Environment, to address the challenges.

He reiterated that Nigeria’s power crisis stems from longstanding structural issues such as inadequate gas supply, ageing infrastructure, transmission bottlenecks and financial constraints across the sector.

Concluding, the minister emphasised that achieving uninterrupted electricity should be seen as a gradual process rather than an immediate endpoint.

“With sustained investment, improved coordination and private sector involvement, Nigeria can deliver reliable power supply to all citizens,” he said.