Nigeria: Govt Needs $10 Billion to Salvage Power Sector - Minister

The Minister of Power, Chief Adebayo Adelabu, stated that the Federal Government needs about $10 billion to improve the power sector. He spoke at the Nigerian Electricity Regulatory Commission (NERC) retreat in Ikot Ekpene. The theme of the retreat was "Addressing Critical and Emerging Issues in the Nigerian Power Sector."

Adelabu mentioned that the government owes over N200 billion in electricity debt. He noted that $10 billion is nearly a third of Nigeria's national budget. He questioned if Nigeria could invest such a large amount in power while other sectors like defense, education, and health also need funding.

For real change in the power sector, both local and foreign investors must contribute. Adelabu emphasized that investment flow is essential for improvement. He stated there are no excuses for not achieving this.

Senator Enyinnaya Abaribe discussed the electricity debt burden on the government. He explained that due to tariff shortfalls, the government owes N200 billion each month. Since 2025 began, no payments have been made, leading to an N800 billion debt this year alone.

Abaribe added that there is already a N3 trillion debt owed to generating companies. He highlighted a liquidity crisis in the power sector affecting both generating and distribution companies. Gas suppliers are also owed money and cannot continue supplying gas indefinitely.

Akwa Ibom State Governor Pastor Umo Eno stressed that power is crucial for economic growth. Represented by Deputy Governor Senator Akon Eyakenyi, he said steady electricity supply is vital for Small and Medium Enterprises (SMEs). SMEs are key drivers of economic growth in many societies.