The Federal Government has launched a $23.2 billion National Energy Compact (NEC) to accelerate Nigeria’s energy transition, tackle persistent power supply challenges, and expand access to clean and sustainable energy solutions.
The initiative is expected to mobilise $15.5 billion in private sector investment to bridge the country’s energy deficit and strengthen the renewable energy sector.
The programme, spearheaded by the Minister of Power, Adebayo Adelabu, is a direct outcome of the recently concluded Mission 300 Africa Energy Summit held in Dar es Salaam, Tanzania.
The summit brought together African leaders, business executives and development partners to discuss strategies to increase electricity access for 300 million Africans by 2030.
According to the minister, the initiative will expand electricity access, boost renewable energy adoption, and improve clean cooking solutions for millions of Nigerians. The government aims to increase national electricity access from four per cent to nine per cent annually, while improving access to clean cooking solutions from 22 per cent to 25 per cent per year.
“The Compact outlines a $23.2 billion investment target, with $15.5 billion expected from private investors. These funds will be directed toward expanding power generation, strengthening transmission and distribution networks, and integrating distributed renewable energy solutions,” Adelabu stated.
The NEC also aims to increase the share of renewable energy in Nigeria’s power generation mix from 22 per cent to 50 per cent, aligning with the United Nations Sustainable Development Goal 7 (SDG7), which seeks to ensure universal access to modern energy services.
Government officials believe that unlocking private sector participation will accelerate the delivery of new projects and ensure last-mile electrification in rural and underserved areas.
Despite the ambitious roadmap, the minister acknowledged challenges such as vandalism of power infrastructure, which continues to disrupt supply and deter investments.
Transmission towers, pipelines, and distribution equipment have been targeted.
“The government is intensifying efforts to curb vandalism through enhanced security, stricter penalties, and improved surveillance technologies,” Adelabu noted.
The minister explained that achieving Nigeria’s electrification targets requires a collective approach, urging development partners, philanthropies and private investors to support the initiative.
“Recognising that achieving universal energy access demands collective action, the government called on development partners, philanthropies, and the private sector to join the transformative journey,” he added.
The launch of the National Energy Compact marks a significant step in Nigeria’s energy sector reforms with the government banking on private sector participation to drive investment and secure long-term energy sustainability.