FG, Partners Unveil $32.8bn Power Development Initiative

The Federal Government has reaffirmed its commitment to reviving Nigeria’s power sector through far-reaching reforms and private sector partnerships. This comes as part of the Mission 300 Compact, a continent-wide initiative to provide electricity to 300 million unserved Africans by 2030.

Speaking at the Mission 300 Stakeholders Engagement Meeting held in Abuja, Minister of Power, Adebayo Adelabu, revealed that the total estimated investment for the compact stands at $32.8 billion, with $15.5 billion expected from private sector contributors.

Adelabu emphasised that the government is actively working on transitioning to a cost-reflective electricity pricing model while simultaneously introducing targeted subsidies to protect economically vulnerable citizens.

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He stated that mobilising this scale of financing requires collaboration, innovation, and shared resolve, urging all stakeholders to ensure electricity access goes beyond policy into daily impact by powering homes, schools, hospitals, and industries.

The Minister identified key priorities of the power sector reforms. He noted the Federal Government is addressing the ₦4 trillion debt owed to generation companies as of December 2024 and is strengthening market liquidity, expanding transmission infrastructure, boosting power generation through the recovery of idle capacities and diversified energy mix, and improving the distribution segment via initiatives like the Presidential Metering Initiative and the World Bank’s Distribution Sector Recovery Programme.

Adelabu added that the government is also scaling renewable energy through rural electrification and transition drives to reach underserved areas.

He expressed appreciation to development partners including the World Bank Group, African Development Bank, Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All for supporting the Mission 300 Compact. He described the initiative as a shared belief that energy access is fundamental to unlocking the continent’s economic potential.

Finance Minister Wale Edun, who spoke via Zoom, echoed the importance of the reforms in unlocking economic opportunities and job creation.