In a recent interview, Olu Verheijen, an energy advisor to President Bola Tinubu, revealed that electricity distribution companies in Nigeria require an estimated N2 trillion (about $2.5 billion) in capital investment to enhance power supply across the country. The Federal Government emphasized the necessity for new investors to revitalize an industry struggling to meet the energy demands of nearly 200 million people.
The dire situation facing the electricity distribution companies stems from being over-leveraged and under-capitalized, severely limiting their ability to expand the distribution of electricity to households. Verheijen stressed the urgency of implementing policies that would facilitate the reorganization and recapitalization of these companies, urging the involvement of new partners equipped with additional capital.
During his New Year broadcast, President Bola Tinubu pledged to address and improve the electricity supply in Nigeria, signaling a commitment to tackling the nation’s power challenges. In further support of this agenda, the Minister of Power, Adebayo Adelabu, expressed readiness to bolster President Tinubu’s electricity turnaround initiative for Nigeria in the approaching year and beyond.
