POWER CRISIS | FG TURNS TO BANKS FOR 23BILLION DOLLARS LIFELINE

In a determined effort to put an end to Nigeria’s persistent power supply challenges, the Federal Government has initiated high-level discussions with commercial banks and potential investors to secure funding for its ambitious plan to achieve universal electricity access across the country. The initiative, which is estimated to require a staggering $23.2 billion in total investment, is part of a broader strategy to provide reliable and sustainable electricity to millions of Nigerians who currently live without power.

According to recent reports, the massive investment is expected to be implemented over the next five to ten years and is projected to reach approximately 120 million people spread across 22 million unelectrified residential households. The scale and scope of the project underscore the government’s recognition of electricity as a critical driver of economic development, social well-being, and national productivity.

Of the total $23.2 billion required, a significant $14.1 billion is earmarked as upfront capital investment—representing roughly 60 percent of the total cost. This substantial sum will need to be mobilized from a range of stakeholders, including financial institutions, development partners, private sector actors, and international donors. The government is actively courting these players in hopes of forming a multi-stakeholder coalition capable of delivering on the ambitious electrification agenda.

Despite being Africa’s largest economy, Nigeria continues to grapple with a woefully inadequate power generation capacity, which hovers around 5,500 megawatts—far below the demand of its growing population and industrial base. The universal access plan seeks to address this shortfall by supplying an estimated 11,499 gigawatt-hours of electricity annually to the targeted 22 million households currently left in the dark.

The government has signaled that the strategy will likely incorporate a mix of on-grid and off-grid solutions, including mini-grids, solar home systems, and expanded transmission infrastructure. This blended approach is intended to deliver not just quantity, but also quality, reliability, and sustainability in electricity access.

If successful, the plan could mark a transformative moment for Nigeria’s power sector, unlocking new economic opportunities, improving quality of life, and propelling the country toward its long-term development goals.