NEWS
Nigeria Targets $20bn Power Investment As FGN Power Seeks $1bn Recapitalisation
Nigeria Targets $20bn Power Investment As FGN Power Seeks $1bn Recapitalisation
Nigeria is targeting approximately $20 billion in fresh investment to expand and strengthen its electricity sector.
FGN Power Company is seeking $1 billion in fresh capital, with the Africa Finance Corporation expected to provide a matching investment.
Another $18 billion is expected from other financiers to support projects across the electricity value chain.
Federal Government has invested more than ₦10 trillion in the power sector since the 2013 privatisation, accounting for over 95 per cent of new infrastructure investment.
Presidential Power Initiative targets an additional 5,540 megawatts of transmission capacity by 2029.
Channel
November 13, () – Nigeria is targeting approximately $20 billion in fresh investment in its electricity sector, as the Federal Government moves to reduce dependence on public funding and attract private capital to address the country’s persistent power infrastructure deficit.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed this at the sixth annual conference of the Power Correspondents Association of Nigeria in Abuja, where he announced plans by the company to raise at least $1 billion in fresh capitalisation to support investment across the electricity value chain.
Anuwe said the Africa Finance Corporation (AFC) was expected to provide a matching investment, while an additional $18 billion would be mobilised from other financiers, bringing the overall investment target to approximately $20 billion.
He explained that the proposed capitalisation would strengthen FGN Power’s capacity to develop bankable projects and attract long-term financing for critical infrastructure in electricity generation, transmission and distribution.
The funding drive comes against the backdrop of concerns over the continued dominance of government financing in the power sector, despite its privatisation in 2013.
According to Anuwe, the Federal Government has invested more than ₦10 trillion in the sector since privatisation, with public funding accounting for over 95 per cent of new infrastructure investments.
He described the financing arrangement as unsustainable, stressing the need to mobilise private and institutional capital to support the country’s electricity and broader economic ambitions.
To address investment barriers, FGN Power is exploring alternative financing mechanisms, including blended finance and viability-gap funding, which are designed to reduce project risks and make infrastructure investments more attractive to private financiers.
The company is also expected to leverage the proposed capitalisation to structure projects capable of attracting long-term funding and supporting improvements across the electricity supply chain.
Meanwhile, the Presidential Power Initiative has an existing project portfolio valued at $2.3 billion, comprising $1.3 billion in European financing and $1 billion from China.
The initiative targets an additional 5,540 megawatts of transmission capacity by 2029, alongside an anticipated improvement of at least 60 percent in grid reliability.
The proposed investments are expected to support infrastructure expansion, improve electricity delivery and provide more dependable power for households, businesses and industries.
However, the scale of the proposed funding ambition raises questions about the ability of the electricity market to attract and sustain the required private investment, particularly amid persistent concerns over commercial viability and the financial health of the sector.
Investors will require predictable regulation, transparent financing arrangements, commercially viable projects and confidence in the market’s capacity to generate sustainable returns.
For Nigeria, the challenge will be translating the proposed $20 billion investment ambition into completed infrastructure projects and measurable improvements in electricity supply, rather than allowing it to remain another funding target without corresponding gains for electricity consumers.
