In Abuja on Monday, the Minister of Power, Mr. Adebayo Adelabu stated that to revive the power sector for the next decade, the Federal Government needs an annual investment of $10 billion.
Speaking at a one-day investigative hearing on halting the electricity tariff increase by the Nigerian Electricity Regulatory Commission (NERC), organized by the Senate Committee on Power, Adelabu emphasized the essential need for significant investment.
Highlighting the challenges faced by the sector, Adelabu pointed out the necessity for a stable infrastructure, stressing that the government alone cannot afford the required investment amount. He insisted that to attract investors and lenders, the sector must become more appealing.
According to Adelabu, creating an attractive sector involves implementing commercial pricing as a crucial factor to entice investments. He explained that the increased tariff band has already sparked interest from potential investors.
Addressing the sector’s liquidity issue, the minister noted that the absence of a cost-reflective tariff had led to operating under a subsidized tariff regime, resulting in significant unpaid liabilities to generating and gas companies over the years.