BREAKING: Nigeria Targets $23.2bn Investment to Transform Energy Sector, Boost Electricity Access

The federal government has set a target of $23.2 billion aimed at transforming Nigeria’s energy sector, with $15.5 billion expected to come from the private sector to drive last mile electrification.

A statement issued in Abuja on Thursday by Bolaji Tunji, spokesman to the Minister of Power, Chief Adebayo Adelabu, said that this was a spin-off of the just-concluded Mission 300 Africa Energy Summit recently held in Dar es Salam, Tanzania.

The two-day summit which brought together African leaders, business executives, and development partners to advance the continent’s ambitious energy agenda was hosted by the government of Tanzania, the African Union (AU), the African Development Bank (AfDB) Group, and the World Bank Group. The summit aimed to accelerate electricity access for 300 million Africans by 2030.

Through the energy access programme, tagged National Energy Compact (NEC), the Nigerian government said it aims to increase electricity access from 4 per cent to 9 per cent annually to close the energy gap.

Part of the expected funding is also intended to boost access to clean cooking solutions from 22 per cent to 25 per cent annually, expand renewable energy’s share in the power generation mix from 22 per cent to 50 per cent, and mobilise $15.5 billion in private investment.

The efforts, according to the statement, align with the United Nation’s Sustainable Development Goal 7 (SDG7), which seeks to ensure universal access to modern energy services.

Adelabu said that if achieved, the funding will help expand electricity access, increase renewable energy adoption, and improve clean cooking solutions for millions of Nigerians.

“With 150 million Nigerians already electrified, Nigeria remains committed to ensuring universal access to affordable and sustainable energy by 2030”, Adelabu said.

He noted that while the roadmap for expansion was clear, challenges such as vandalism of power infrastructure pose a significant threat to Nigeria’s electrification efforts.

“Transmission towers, pipelines, and distribution equipment have been targeted, disrupting supply and deterring potential investors,” he lamented.

The minister emphasised that protecting power assets was crucial to ensuring uninterrupted electricity supply and sustaining progress, adding that the government was intensifying efforts to curb vandalism through enhanced security, stricter penalties, and improved surveillance technologies.

According to him, achieving Nigeria’s electrification targets requires significant investment, and the government is prioritising private sector participation to unlock additional resources.

“The compact outlines a $23.2 billion investment target, with $15.5 billion expected from private investors. These funds will be directed toward expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewable energy solutions,” he said.

Recognising that achieving universal energy access demands collective action, the government called on development partners, philanthropists, and the private sector to join the transformative journey.

“By implementing the action plan in the National Energy Compact, Nigeria is positioning itself as a leader in Africa’s energy transition and creating opportunities for economic growth, job creation, and industrialisation.

“As the Mission 300 initiative gains momentum, Nigeria’s strong commitment to energy sector reforms, infrastructure expansion, and investment mobilisation will be crucial in shaping the future of electricity access across the continent,” he added.