Nigerian Government Needs $10 Billion Annually to Revitalize Power Sector- Minister

Mr. Adebayo Adelabu, the Minister of Power, emphasized the need for an annual investment of $10 billion over the next decade to rejuvenate the power sector during a one-day investigative hearing in Abuja on Monday. He addressed the Senate Committee on Power regarding the halt on electricity tariff increases by the Nigerian Electricity Regulatory Commission (NERC).

Adelabu highlighted the necessity for substantial investments to ensure sector stability but acknowledged the government’s financial limitations. He emphasized the importance of making the sector appealing to investors and lenders to attract the necessary funding.

To make the sector attractive for investment, Adelabu stressed the importance of commercial pricing. He explained that without appropriate pricing, investors would be deterred from participating in the sector. Adelabu noted that the recent tariff increase has sparked interest among potential investors.

The minister identified liquidity as a significant challenge in the sector, citing the absence of a cost-reflective tariff. He explained that the sector has been operating under a subsidized tariff regime, resulting in unpaid liabilities to generating and gas companies over the years.