By Abigail Philip David
The Federal Government has launched an ambitious $23.2 billion energy access programme aimed at addressing Nigeria’s chronic electricity challenges and transforming the energy sector. Of the total investment, $15.5 billion is expected to come from private sector participation.
The programme, known as the ‘National Energy Compact’, was unveiled by the Minister of Power, Adebayo Adelabu, and is part of Nigeria’s commitment to achieving universal access to modern energy services by 2030, in alignment with the UN Sustainable Development Goal 7.
According to Bolaji Tunji, the minister’s spokesperson, the initiative stems from Nigeria’s active participation in the recent Mission 300 Africa Energy Summit held in Dar es Salaam, Tanzania. The summit, hosted by Tanzania’s government in collaboration with the African Union, African Development Bank, and World Bank, aims to provide electricity access to 300 million Africans by 2030.
Key Targets of the Energy Compact
Tunji outlined the programme’s primary goals:
– Increase electricity access from 4% to 9% annually.
– Boost clean cooking solutions access from 22% to 25% annually.
– Expand renewable energy’s share in power generation from 22% to 50%.
– Mobilise $15.5 billion in private investment to support last-mile electrification efforts.
Minister Adelabu emphasised that the programme will significantly enhance electricity access, drive renewable energy adoption, and improve access to clean cookiKng solutions for millions of Nigerians.
“With over 150 million Nigerians already electrified, we are committed to ensuring universal access to affordable and sustainable energy by 2030,” he stated.
Challenges and Security Concerns
Adelabu acknowledged the challenges posed by vandalism of power infrastructure, which has disrupted electricity supply and deterred potential investors.
“Transmission towers, pipelines, and distribution equipment are frequently targeted, threatening the sustainability of our electrification efforts. Protecting power assets is crucial for an uninterrupted power supply,” he said.
To combat this, the government plans to enhance security measures, impose stricter penalties, and deploy improved surveillance technologies to safeguard power infrastructure.
Investment and Private Sector Involvement
The government is prioritising private sector participation to achieve its energy goals. Adelabu highlighted that the $23.2 billion investment plan would focus on:
– Expanding power generation capacity.
– Strengthening transmission and distribution networks.
– Integrating distributed renewable energy solutions.
The programme calls on development partners, philanthropists, and private investors to join efforts in reshaping Nigeria’s energy landscape.
Nigeria’s Energy Deficit
Despite a population of over 200 million, Nigeria struggles to provide stable electricity, with a current output of just 4,500 megawatts. Efforts in 2024 to increase power generation to 6,000MW were hampered by frequent grid collapses and vandalism.
In response to these challenges, over 250 companies and institutions have opted out of the national grid, generating their own electricity to meet their energy needs.
By implementing the National Energy Compact, the government aims to position Nigeria as a leader in Africa’s energy transition, fostering economic growth, job creation, and industrialisation.
“As the Mission 300 initiative gathers pace, Nigeria’s commitment to energy reforms, infrastructure expansion, and investment mobilisation will play a crucial role in shaping the future of electricity access across the continent,” the minister added.
