Nigeria Needs to Invest $10 Billion Annually for 20 Years to Achieve Stable Electricity Supply, Says Minister Adelabu
Nigeria’s Minister of Power, Adebayo Adelabu, has called for more investment to address the country’s electricity crisis, stating that the country needs at least $10 billion annually for the next 20 years to ensure a stable and reliable power supply.
Speaking at the commissioning of a 2.5 megawatt solar hybrid power project at the Nigerian Defence Academy (NDA) in Kaduna on May 13, 2025, Adelabu outlined the urgent need for comprehensive investments in Nigeria’s power infrastructure.
He explained that a substantial infusion of funds is necessary to close the power sector’s large infrastructure gap, which has resulted from decades of underinvestment, poor maintenance, and insufficient upgrades to the national transmission grid.
“Nigeria requires a minimum of $10 billion annually for the next 20 years to address these foundational issues and bring stability to the nation’s power supply,” Adelabu stated during the event.
He also acknowledged that the infrastructure deficit, accumulated over the past 60 years, is one of the most significant challenges currently facing the sector.
The Minister highlighted that the Federal Government has taken steps to address these issues through legislative reforms, including the recent signing of the Energy Bill into law.
The law decentralizes the power sector, granting more autonomy to states and local governments to participate in power generation, transmission, distribution, and metering.
This reform is expected to foster greater competition and efficiency in the sector. Currently, over 11 states are already engaged in electricity generation and distribution efforts.
One of the key challenges in the Nigerian electricity sector is the metering gap, which has left more than 50% of electricity consumers without proper meters.
To address this, the government is rolling out a Presidential initiative aimed at installing 18 million meters in the next five years.
The initiative is expected to boost revenue collection, reduce energy theft, and improve service delivery for Nigerians.
Despite the monumental investment required, Adelabu expressed optimism about the future of Nigeria’s power sector.
He stated that the current administration, under President Bola Tinubu, is committed to tackling the deep-rooted issues in the sector, with a focus on long-term sustainability and growth.
The commissioning of the solar hybrid power project at the NDA marks a significant step toward diversifying Nigeria’s energy sources and improving access to clean and reliable electricity, especially in critical sectors such as education and security. As part of the government’s broader energy strategy, the solar hybrid project aligns with the vision of reducing the country’s reliance on fossil fuels and promoting renewable energy solutions.
While the required funding presents a formidable challenge, Adelabu’s message underscores the government’s commitment to overcoming the obstacles hindering progress in the power sector.
The call for annual investments in the sector aims to create a foundation for long-term, sustainable power solutions for Nigerians, contributing to economic development and improved living standards across the country.
