BY John Umeh
In a bid to revive Nigeria’s struggling power sector, the Federal Government has turned to both local and international banks for a $23 billion financial lifeline.
The funding, according to government sources, is intended to address critical gaps in power generation, transmission, and distribution. The move comes as the country grapples with worsening electricity supply, frequent blackouts, and mounting pressure from businesses and citizens alike.
Officials say the bulk of the funds will be channeled into upgrading outdated infrastructure, settling debts owed to power generation and distribution companies, and boosting investment in renewable energy projects. A portion is also expected to support ongoing reforms aimed at improving efficiency and transparency across the sector.
Nigeria’s power sector has long been plagued by underinvestment, policy inconsistencies, and poor maintenance. Despite several intervention efforts, including privatization and tariff adjustments, millions of Nigerians still lack reliable electricity.
The government’s appeal to financial institutions signals the urgency of the situation, with authorities hoping that fresh capital injection will help stabilize the grid and attract long-term investment.
Analysts have welcomed the move but warn that funding alone will not solve the sector’s deep-rooted problems. They stress the need for sustained policy reform, accountability, and improved regulatory oversight.
As negotiations with banks continue, the nation watches closely, hoping the power sector might finally see a much-needed turnaround.
