Power
NERC calls for private capital to scale up power generation
The Nigerian Electricity Regulatory Commission has urged private investors to utilise current regulatory instruments to fund large-scale electricity projects.
Key points
- NERC officials highlighted investment prospects during the 32nd Nigerian Economic Summit in Abuja.
- Discussions focused on decentralised models, embedded generation, and gas-to-power infrastructure.
- Industry stakeholders emphasised commercial discipline and reliable supply to foster industrial growth.
What happened
The Nigerian Electricity Regulatory Commission has invited investors to leverage existing regulatory tools to finance extensive power projects and boost nationwide electricity availability. Speaking at a panel during the 32nd Nigerian Economic Summit in Abuja, the commission's Director of Economic Regulation, Abba Terab, delivered the call on behalf of NERC Chairman Dr Musiliu Oseni. According to an official statement, the session centered on reliable electricity for industrial growth and prosperity.
Terab noted that the agency has put in place frameworks to back viable transactions and draw private funds into the electricity sector. He added that the Federal Government remains committed to market liberalisation via the Electricity Act and supplementary guidelines, aligning with the Vision 30:30:30 objective. These initiatives encourage decentralised supply structures, including embedded generation, which places power production closer to end users and communities outside traditional grid constraints.
Other industry leaders at the event discussed complementary measures needed to strengthen the market. Abuja Electricity Distribution Company Managing Director Chijioke Okwuokenye pointed out that regulatory backing is vital for embedded generation and net billing systems, which encourage renewable energy adoption. Elektron Managing Director Deen Solebo emphasized ongoing efforts to improve gas-to-power infrastructure, arguing that medium-scale plants can efficiently serve specific industrial clusters. Meanwhile, Manufacturers Association of Nigeria Director-General Segun Ajayi-Kadir drew attention to commercial challenges, stressing that reliable deliveries must be matched by strict payment discipline from consumers to safeguard provider solvency.
Why it matters
Expanding generation capacity and attracting private capital remain critical for Nigeria's industrial sector, which continues to suffer from high operating costs due to grid unreliability. World Bank figures for 2024 place Nigeria's electricity use per person at 140.6 kWh, significantly below the global average of 3,708.5 kWh, while national electricity access stands at 62.5 percent compared to a global rate of 91.9 percent. For investors and policymakers, scaling up decentralised and gas-to-power solutions under the Electricity Act 2023 offers a pathway to bridge this deficit, provided that commercial frameworks and payment discipline are rigorously enforced across the value chain.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
