The Federal Government has stated that it requires $10 billion in public-private partnership investments in the power sector over the next five to ten years to achieve a 24-hour power supply.
The Minister of Power, Mr. Adebayo Adelabu, made this announcement during a courtesy visit by Dr. Jobson Ewalefoh, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC).
A statement regarding the visit was issued to the News Agency of Nigeria (NAN) on Wednesday in Abuja by Mr. Ifeanyi Nwoko, Acting Head of Media and Publicity at the ICRC.
In the statement, Adelabu said that the government alone needed more than 10 billion dollars when other critical sectors needed funding.
“Government cannot do it alone; this is why we have to look for organised private sector funding while still retaining government interest and ownership.
“That is where ICRC comes in. We need to do this in collaboration with the private sector, and the best way is through concession,’’ he said.
Earlier, Ewalefoh emphasized the need to involve the private sector through Public-Private Partnerships to enhance the power sector.
He stated that, given the critical role of power in the nation’s economic development, it is essential to optimize the performance of existing infrastructure and secure funding for new projects.
The ICRC chief noted that the challenges in the sector are numerous and have surpassed the capacity of the Federal Government to address through funding alone.
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He added that through interagency collaboration and private sector partnerships, these limitations could be overcome.
The D-G said that through its regulatory processes, the ICRC could midwife private sector investment to raise part of the 10 billion dollars needed in the sector to provide regular electricity.
He added that the ICRC could also attract more foreign direct investment to other sectors and ultimately grow the economy.
“Revamping the power sector requires planning; it involves investments, and it takes time. So, we need to collaborate to solve the issues in this sector.
“The investment required in the power sector is very huge, and the government cannot fund it alone, so we have to leverage the financing capacity of the private sector.
”That is why the ICRC was set up to regulate this leverage,” he said.
Ewalefoh praised the minister for his extensive knowledge of the sector, stating that President Bola Tinubu’s choice of him for the role was commendable.
He recalled that, in line with the President’s directive to accelerate PPP investments, the commission introduced a 6-point policy framework to streamline the PPP service delivery process.
The Director-General added that the commission remains committed to its strict regulatory functions, ensuring that companies lacking the necessary capacity do not cause delays or incur contingent liabilities.
(NAN).
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