By Sophie Lindqvist

FGN Power Company is targeting $20 billion to expand Nigeria’s electricity infrastructure and improve supply. It seeks a $1 billion recapitalisation (new capital), expects Africa Finance Corporation to match that amount and is relying on other financiers for $18 billion.

At the sixth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja, Managing Director/CEO Kenny Anuwe disclosed the target on Thursday. Minister of Power Joseph Tegbe, represented by Special Adviser on Administration and Projects Marrins Olajide, outlined the government programme.

Kenny Anuwe said: “We believe that the future is where FGN Power Company is capitalised by at least $1 billion. AFC has promised to match that amount. Other financiers need to bring in $18 billion.”

Anuwe said government has invested more than N10 trillion since privatisation in 2013, keeping the industry afloat. He said the amount remained insufficient relative to Nigeria’s infrastructure needs and economic ambitions.

The capital structure

Africa Finance Corporation (AFC) is expected to match the $1 billion, while other financiers are expected to provide $18 billion. The latter would not necessarily flow directly to FGN Power, but into generation, transmission and distribution through sector investment models.

Anuwe described the recapitalisation as a way to position FGN Power as a credible vehicle for structuring bankable (commercially financeable) projects, securing financing and delivering incremental power nationwide. He proposed moving beyond sovereign guarantees (government-backed repayment commitments) and 15 per cent counterpart funding (the government’s matching contribution).

FGN Power is exploring viability gap financing (public support for an early commercial shortfall) and blended finance (mixed public and private capital). Anuwe said these structures could draw institutional and private money at scale, but only if projects meet commercial tests.

The government’s stabilisation plan

Tegbe said the government plans a pilot 24-hour energy zone spanning Lagos–Ogun and Abuja. The regions account for more than 50 per cent of national electricity demand, making them a demanding test.

Tegbe placed the zones within a four-part roadmap:

• Grid stabilisation.
• Sector liquidity and sustainability.
• Asset optimisation.
• Expansion and enhancement of the grid.

The corridor approach aligns generation, transmission reinforcement and distribution capacity with demand in three clusters: Lagos–Ogun; Benin–Enugu–Port Harcourt; and Abuja–Kaduna–Kano. Implementation will depend on technical readiness and commercial viability, and a technical audit has been commissioned to identify critical constraints.

Funding already committed

President Bola Ahmed Tinubu approved a N3.3 trillion plan to settle verified legacy debts owed to generation companies, and N1.23 trillion has been raised. Tegbe said this has eased pressure on generators and improved their ability to pay for gas and maintain plants.

He said transmission capacity above 15,000MVA (megavolt-amperes, a measure of electrical capacity) entered the grid between 2023 and October 2026. More than 1,300MVA entered service in the preceding two months at Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri and Walalambe.

Tegbe reported that more than 2.8 million customers had been metered under the Presidential Metering Initiative. Work has started on a new National Grid Control Centre in Osogbo, replacing one more than 60 years old, while security agencies back an approved anti-vandalism campaign and stronger legal protection for assets.

What does the $20 billion target change for investors?

The immediate change is a proposed financing architecture, not completed capacity. The $18 billion would not necessarily enter FGN Power directly, and remains contingent on financiers, viable structures, regulatory certainty and delivery, so the headline should not be treated as committed funding.

FGN Power is executing a $2.3 billion Presidential Power Initiative portfolio, comprising $1.3 billion from Europe and $1 billion from China. The projects seek to add 5,540 megawatts of transmission capacity and improve grid reliability by at least 60 per cent by 2029.

They include a second batch of 12 Siemens substations and special projects involving the Omotosho substations, expected to deliver nearly 3,400MW cumulatively. Their contribution will depend on commissioning and operating performance.

Private capital and public dependence

Anuwe said government currently supplies more than 95 per cent of new sector infrastructure investment. He called that dependence unsustainable and contrary to privatisation’s intent, while arguing that private investors require simpler structures, predictable rules, clear institutional responsibilities and viable projects.

He said: “Government can provide the enablers, provide infrastructure, delivery, and market conditions under which public and private capital can perform effectively.” The financing split remains unsettled: 95 per cent is a present baseline, not a commitment to reduce it.

Risks to reliable supply

PCAN Chairman Obas Esiedesa said Nigeria’s ambition to build a $1 trillion economy by 2030 cannot be met without dependable power. Anuwe linked reliable, affordable electricity to that goal, while warning that infrastructure alone will not fix the sector without commercial and regulatory reform.

Esiedesa highlighted recurring generation declines between November and March, when lower water inflows constrain hydroelectric stations and gas shortages constrain thermal plants. He urged government, regulators, generation companies and gas suppliers to arrange guaranteed gas supplies for thermal plants during that period.

He also identified inadequate transmission and distribution infrastructure, liquidity shortfalls, investment gaps and regulatory uncertainty as unresolved problems. He said the Electricity Act 2023 opens room for investment and innovation through a decentralised electricity market, but clear regulation and coordination are needed to benefit consumers.

Both speakers asked journalists to report accurately, hold institutions accountable and help citizens assess the facts. Their case rests on a test: public money has sustained the sector, but the private-capital model must prove it can fund additions without reproducing government dependence.