The Federal Government of Nigeria is seeking $15 billion in private investments to upgrade its struggling power sector and bridge a $23 billion funding gap. This initiative, announced at the World Bank Energy Summit in Tanzania, aims to overcome the country's power crisis and provide electricity to 86 million Nigerians who currently lack access.
The plan includes increasing the share of renewable energy from 22% to 50% and doubling grid connections within five years. A key feature of the initiative is a monthly subsidy of 50 kilowatt-hours (kWh) for households, ensuring affordability across the board. However, by 2027, the government will implement a cost-reflective tariff system, with protections for vulnerable households.
The reforms are designed to attract investors, increase electricity supply, and support economic growth. Despite its rich energy resources, Nigeria's electricity generation remains low at 13,000 megawatts, resulting in frequent power outages.