Nigeria's Power Sector Secures $2 Billion Investment Boost

The Nigerian power sector has successfully attracted a $2 billion investment as the federal government reduced its liabilities to N146 billion. Minister of Power, Adebayo Adelabu, disclosed this development during the inauguration of the Nigeria Electricity Liability Management Company (NELMCO) headquarters in Abuja.

This milestone is part of President Bola Tinubu's Renewed Hope Agenda, which aims to reform the power sector and improve its financial framework. Adelabu noted that the reforms have led to a reduction of inherited liabilities from N2.303 trillion to N146.76 billion, resulting in a savings of N700 billion for the federal government.

The reforms also include the implementation of the Electricity Act 2023, which decentralizes the electricity market, allowing for increased participation from subnational entities. The sector is projected to experience a 70% revenue growth by 2024, alongside efforts to address the longstanding meter gap with the mobilization of N700 billion and an additional $500 million from the World Bank.