The Federal Government of Nigeria has emphasized the necessity for the private sector to invest approximately $3.5 billion each year in order to achieve the goal of increasing electricity generation capacity to 30,000 megawatts (MW) within the next seven years.

This means that a total investment of at least $24.5 billion is required by 2030 to make the aspiration of enhanced electricity capacity a reality.

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Minister of Power, Aliyu Abubakar, highlighted the crucial role of the power sector in the country’s industrial revolution during the ‘Solar Power Naija Programme Investor Matchmaking Event’ organized by the Rural Electrification Agency (REA) in Abuja.

While Nigeria privatized the electricity sector in 2013 with the aim of improving the state of the industry and realizing the long-held ambition of reliable and stable power supply, the anticipated progress has not been fully achieved, as the actual generation capacity remains around 4,000 MW.

Abubakar, represented at the event by Eyo Babalola, Director of Investments and Power Sector Development at the Ministry of Power, mentioned that the Federal Government has enacted the electricity power sector reform (EPSR) Act and recently signed a bill empowering state governments to generate, transmit, and distribute electricity to stimulate investment.

He further emphasized the immense investment opportunities available in the Nigerian power sector.

Ahmad Salihijo, Managing Director of REA, emphasized that budgetary allocations alone cannot bridge the gap in rural electrification.

He stressed the need for concerted efforts to attract private sector participation. The Solar Power Naija team, in collaboration with REA, has been actively engaging with potential investors and guarantors in the solar power space to increase access to financing for developers.

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The investor matchmaking event aims to expedite funding options and expand electricity access to underserved communities across the country.

The Solar Power Naija Programme, launched as part of the Economic Sustainability Plan (ESP), aims to provide five million new solar connections in off-grid communities.

The initiative is expected to generate an additional N7 billion in annual tax revenues and contribute to $10 million in yearly import substitution.

The program’s objectives include expanding energy access to 25 million individuals, promoting local content in the off-grid solar value chain, fostering growth in the local manufacturing and assembly industry, and creating 250,000 new jobs in the energy sector.

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Barbara Izilein, Head of the Solar Power Naija Programme, revealed that the initiative began by accessing N140 billion from the excess cash reserves of commercial banks, providing solar developers with single-digit interest facility loans.

She mentioned that the program has expanded to include other potential investors interested in making substantial investments in the solar sector.