The Federal Government has revealed that Nigeria needs more than $100 billion ( more than N160 trillion )in combined public and private investment across the entire power sector to ensure a reliable 24/7 electricity supply.
At a press conference, where he was updating the public on recent developments and achievements in the power sector under the current government, the Minister of Power, Adebayo Adelabu, acknowledged the recent decline in electricity supply across the country.
He apologized to Nigerians and promised to take quick steps to fix the situation.
“Put together, we are talking of over $100bn of investments in the upstream, midstream, and downstream of the power sector value chain,” Adelabu said. According to him, “This is not a figure to be underestimated, but it is achievable in phases, through a combination of government and private sector participation. Patience and consistent investment are key.”
The minister explained that the government had worked out the costs: bringing an extra 20,000 megawatts of power online would likely set them back around $30 billion, based on an average cost of $1.5 billion for every 1,000MW plant.
Getting that power to where it’s needed through transmission lines is estimated at $20 billion, while setting up distribution networks and gas pipelines would cost roughly $25 billion and $22 billion, respectively.
Adelabu pointed out that while South Africa, with a population of about 60 million, is considering a $25 billion private investment in its energy sector, Nigeria’s much larger population – over 200 million – means we need to invest even more, proportionally speaking.
Although there are difficulties now, the minister also emphasized the significant progress that had been made since the current administration took office in September 2023.
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He noted that, for the first time in Nigeria’s history, “we achieved a generation peak of 6,001 megawatts in April 2025, and the highest transmission of 5,801 megawatts on March 2, 2025,” he said.
“This was made possible through completion of the Zungeru hydro power plant (700MW), rehabilitation of existing thermal plants, and expansion of renewable energy via mini-grids.”
Installed capacity rose from 13,000MW in 2023 to 14,400MW in 2025, while financial interventions included a N4tn debt restructuring to clear outstanding unpaid subsidies to power-generating companies, of which N501bn has already been raised from the bond market and disbursed.
The introduction of cost-reflective tariffs for a portion of consumers (about 15 per cent) has significantly boosted sector revenue. “Revenue grew from N1tn in 2023 to N2.3tn in 2025,” Adelabu said.
“This allowed payments to generation companies to increase from 9 per cent to between 35 per cent and 40 per cent of invoices, dramatically reducing government subsidy requirements.”
The minister emphasised that the phased approach ensures infrastructure upgrades across bonds A to E, gradually expanding the number of consumers enjoying stable daily electricity.
By steadily migrating customers to upgraded infrastructure, we can achieve 60–70 per cent coverage within a few years,” he said.
Adelabu disclosed that Nigeria’s national grid can now wheel up to 8,500 megawatts, up from 5,000MW in 2023, with a target of 15,000MW within three years upon completion of ongoing projects, including the Presidential Power Initiative.
“Infrastructure upgrades have reduced grid collapses from an average of 12–15 per year to just four over the last two -and_ a- half years,” he said.
Adelabu said ,”This demonstrates the tangible impact of our investments in transmission and substation upgrades.”
The minister further attributed recent power shortages to gas supply constraints affecting 75 per cent of Nigeria’s gas-fired plants.
“Even the best turbines cannot operate without raw materials,” he said. “Global gas shortages due to the Middle East crisis, local supply obligations, outstanding payments to gas suppliers, and pipeline repairs have all contributed to the recent decline in generation.”
Only two out of 32 power plants currently have firm gas supply contracts, he added, while the rest rely on irregular supplies on a best-effort basis. ”
He added, “We are appealing to all stakeholders for coordinated action to reverse this trend,” Adelabu said, calling for structured cooperation between the Ministries of Power, Petroleum, Water Resources, and Environment.
Nigeria’s power sector has been facing tough times for a long time, dealing with a mix of deep-rooted and day-to-day problems. These include not enough gas to fuel the plants, old and worn-out equipment, issues with getting power from one place to another, and ongoing financial troubles throughout the industry.
Adelabu wrapped up by restating the ministry’s goal: “We view having electricity around the clock not as a final finish line, but more like a continuous process.
With careful investments made in stages, better teamwork, and involving the private sector, Nigeria can make sure every citizen has a steady and dependable power supply.
