May 28, 2023

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FG Calls for Private Sector Investment in Electricity


CEM REPORT, ENERGY | The Federal Government has said the nation requires a steady $3.5 billion private sector investment yearly to boost power generation to 30,000 megawatts before 2030.

The government said it has put in place the electricity power sector reform (EPSR) Act and recently signed into law the bill empowering the state government to generate, transmit and distribute electricity to boost investment.

Speaking at the ‘Solar Power Naija Programme Investor Matchmaking Event’ organised by the Rural Electrification Agency (REA) in Abuja, Minister of Power, Aliyu Abubakar, said that the investment opportunities in the Nigerian power sector are endless.

He added that the Federal Ministry of Power is at the centre of undertaking critical actions that would transform the industry from public to private sector-driven.

Commenting on the need for private sector investment in the nation’s electricity generation, Managing Director of REA, Ahmad Salihijo, stressed that concerted efforts were needed to attract the private sector to the space.

He noted that budgetary allocation would not bridge the gap in rural electrification in the country,

Salihijo said the Solar Power Naija team, with support from the REA, has been working to increase access to financing for developers in the solar power space, holding discussions with potential investors and guarantors interested in investing.

Guardian reports that the Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll-out of five million new solar connections in off-grid communities.

[READ ALSO] FG Earns N135 Billion from Electricity

The programme is expected to generate an additional N7 billion increase in tax revenues yearly and $10 million in yearly import substitution. With the programme, the Federal Government is expected to expand energy access to 25 million individuals, increase local content in the off-grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.

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