The Federal Government is stepping up efforts to attract fresh investment into Nigeria’s troubled electricity sector, with FGN Power Company Limited targeting at least $1bn in new capital.
FGN Power Company Limited has announced plans to raise at least $1bn in fresh capital as the Federal Government intensifies efforts to attract an additional $18bn in investment into Nigeria’s electricity sector.
The company’s Managing Director, Kenny Anuwe, disclosed this on Thursday at the sixth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja.
Anuwe said the Africa Finance Corporation (AFC) was expected to provide a matching $1bn, potentially bringing the immediate recapitalisation effort to $2bn.
The proposed capital injection forms part of broader efforts by the Federal Government to mobilise substantial private and institutional investment to address longstanding challenges in the power sector.
Nigeria’s electricity industry has continued to grapple with inadequate infrastructure, unreliable power supply, liquidity constraints and insufficient investment, despite successive government interventions and reform programmes.
The planned recapitalisation is expected to strengthen the financial capacity of FGN Power Company and support efforts to expand investment in critical electricity infrastructure.
The Federal Government’s wider ambition to attract $18bn into the sector also signals a renewed push to improve electricity generation, transmission and distribution, while creating a more attractive environment for investors.
However, the success of the initiative will depend largely on the ability of the government and its partners to translate the proposed investments into tangible improvements in electricity supply and the overall performance of the power industry.
For millions of Nigerians and businesses struggling with unreliable electricity, the proposed investment drive could represent a significant opportunity, provided the funding is effectively deployed.
