NERC Proposes $2bn Industrial Power Fund to Boost Nigerian Economy

The Nigerian Electricity Regulatory Commission (NERC) has suggested a $2 billion industrial power fund to drive economic growth by shifting focus from rural electrification to powering industrial clusters. The fund, managed by the Rural Electrification Agency (REA), includes contributions from the World Bank, African Development Bank, and Global Energy Alliance.

This initiative aims to address power deficits in manufacturing corridors like Lagos, Ogun, Kano, and Nnewi, where inadequate electricity supply hampers production and investment. By reallocating funds to support industrial zones, Nigeria seeks to reduce energy costs, enhance capacity utilization, attract private investments, and promote renewable energy projects.