The FGN Power Company Limited says it is seeking at least $1 billion in fresh capitalisation, with the Africa Finance Corporation (AFC) expected to provide a matching amount, as the federal government seeks to attract another $18 billion into Nigeria’s electricity sector.
Kenny Anuwe, managing director of FGN Power Company,
disclosed this on Thursday at the sixth annual conference of the Power
Correspondents Association of Nigeria (PCAN) in Abuja.
Anuwe said the proposed recapitalisation would strengthen
the company’s capacity to structure bankable projects and attract private and
institutional capital into the power sector.
He said the AFC is expected to match the $1 billion
investment, while other financiers would provide the additional $18 billion.
“FGN Power Company should be capitalised with at least $1
billion, with the Africa Finance Corporation matching it, while other
financiers bring in $18 billion,” he said.
Anuwe said the proposed funding would not necessarily flow
directly into FGN Power Company, but would support investment across
generation, transmission, and distribution.
He said the government currently provides more than 95
percent of new infrastructure investment in the electricity sector, despite the
privatisation of the industry in 2013.
“That’s not why we privatised,” he said.
Anuwe said the federal government had invested more than N10
trillion in the electricity sector since privatisation.
“Government has invested over 10 trillion naira in the
electricity sector since the advent of privatisation. If government did not put
that money in, the industry would not be standing,” he said.
He said the company is currently financing a $2.3 billion
project portfolio, comprising $1.3 billion from Europe and $1 billion from
China.
According to Anuwe, the federal government holds 15 percent
equity in each of the projects.
Anuwe said the presidential power initiative targets 5,540
megawatts by 2029 and at least a 60 percent improvement in electricity
reliability.
He, however, said infrastructure alone would not resolve the
sector’s problems, calling for financing models such as blended finance and
viability-gap funding to attract private capital.
FG PLANS 24-HOUR ELECTRICITY SUPPLY PILOT IN LAGOS-OGUN,
ABUJA
Earlier, Joseph Tegbe, minister of power, said the federal
government is planning to pilot a 24-hour electricity supply initiative in the
Lagos-Ogun axis and Abuja franchise area as part of efforts to address
persistent challenges in Nigeria’s power sector.
He said the two areas, which accounted for more than 50
percent of national electricity demand, would serve as pilot zones for the
proposed 24-hour supply model.
Tegbe, represented by Martins Olajide, his special adviser
on administration and projects, said implementation would be guided by
“technical readiness and commercial viability”.
“Every serious conversation about Nigeria’s industrial
future eventually arrives at the question of power,” Tegbe said.
The minister said the government’s roadmap for the sector is
built around four areas: grid stabilisation, sector liquidity and
sustainability, asset optimisation, and grid expansion and enhancement.
He said the plan would adopt a corridor approach, aligning
generation, transmission, and distribution with demand across the Lagos-Ogun,
Benin-Enugu-Port Harcourt and Abuja-Kaduna-Kano clusters.
Tegbe said a technical audit has been commissioned to guide
the sequencing of the projects.
He also said the federal government had approved a N3.3
trillion plan to settle verified legacy debts owed to generating companies,
with N1.23 trillion already raised.
‘2.8 MILLION ELECTRICITY CUSTOMERS METERED’
According to him, more than 2.8 million electricity cstomers
have been metered under the presidential metering initiative, while over 15,000
megavolt-amperes of transmission capacity was added between 2023 and October
2026.
About 1,300MVA of the additional transmission capacity was
added in the last two months, he said.
Obas Esiedesa, PCAN chairman, called for measures to address
the recurring decline in power generation between November and March,
attributing the drop to reduced water inflows to hydropower stations and gas
supply constraints affecting thermal plants.
Olusegun Michael, managing director of the Nigerian
Electricity Management Services Agency (NEMSA), said improved electricity
supply must be accompanied by safety and regulatory compliance.
Michael said the government cannot have infrastructure that
“is not safe and that does not comply with regulations”.
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