FG Sets Ambitious $23.2bn Investment Target for Power Sector Transformation
Written by Olakunle Oke on January 30, 2025
The Federal Government has unveiled an ambitious energy access program aimed at transforming the nation’s energy sector. Tagged the National Energy Compact (NEC), the program seeks to increase electricity access from 4% to 9% annually, boosting access to clean cooking solutions and expanding renewable energy’s share in the power generation mix.
The government plans to mobilize $15.5 billion in private investment to drive last-mile electrification, with the overall investment target set at $23.2 billion. This effort aligns with the UN’s Sustainable Development Goal 7 (SDG7), which aims to ensure universal access to modern energy services.
Minister of Power, Chief Adebayo Adelabu, emphasized that protecting power assets is crucial to ensuring uninterrupted electricity supply. The government is intensifying efforts to curb vandalism through enhanced security, stricter penalties, and improved surveillance technologies.
Key Objectives of the National Energy Compact:
– Increase Electricity Access: From 4% to 9% annually
– Boost Clean Cooking Solutions: From 22% to 25% annually
– Expand Renewable Energy: From 22% to 50% of the power generation mix
– Mobilize Private Investment: $15.5 billion for last-mile electrification
The government is calling on development partners, philanthropies, and the private sector to join the transformative journey, positioning Nigeria as a leader in Africa’s energy transition.