Govt reviews rules to woo investment into national grid

Govt reviews rules to woo investment into national grid

The Federal Government, in collaboration with the Nigerian Electricity Regulatory Commission (NERC), is reviewing regulations to attract private investment in Nigeria’s electricity transmission sector. Speaking at the PwC Annual Power and Utilities Roundtable in Lagos, Minister of Power Chief Adebayo Adelabu highlighted that the government aims to reduce its full financial burden for the national grid by allowing private sector participation through a “willing-buyer mechanism.” This framework enables investors to fund specific transmission projects, such as substations and transformers, with clear avenues to recoup investments.

Adelabu emphasized that consumer-level financing, particularly for renewable energy, is key to sustainable sector growth. Renewable energy, he noted, expands electricity access to remote and rural communities, supports agricultural productivity, and drives local economic development. Initiatives like the Distributed Access through Renewable Energy Scale-up (DARES) project, along with a ₦5 billion Sterling Bank facility, allow rural households to acquire solar home systems with flexible payment plans over 24–48 months.

The Minister also highlighted the role of development partners, including the World Bank, AfDB, GIZ, AFD, and JICA, in de-risking the renewable energy sector through capital subsidies and loans. These measures, covering up to 30% of system costs, encourage private vendors to contribute the remaining 70%, fostering industry growth, investor confidence, and wider adoption of renewable energy solutions across Nigeria.

       The Nation, 8 Dec 2025