From David Onuoja, Abuja
The Federal Government, has told investors that there can be no sustained economic growth in Nigeria without reliable electricity, and that, no reliable electricity without financially sustainable markets, as it moves to reposition the Nigerian Electricity Supply Industry as an investment-grade sector.
Speaking at a high level gathering on the power sector in Abuja today, the Minister of Power, Joseph Tegbe, said the reforms being driven under President Bola Ahmed Tinubu, and the Electricity Act, 2023 are fundamentally reshaping the architecture of the industry.
“Permit me to begin with a simple proposition: there can be no sustained economic growth without reliable electricity, and there can be no reliable electricity without financially sustainable markets. That is the philosophy underpinning the reforms we are pursuing”, he said.
The Minister outlined the administration’s focus areas as fostering a more competitive electricity market, empowering sub-national governments expanding transmission infrastructure, accelerating renewable energy deployment, strengthening regulatory certainty, and improving governance across the value chain.
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According to him, “these measures are already changing the investment narrative around the sector and opening it up to private capital”.
A central part of the new strategy, he said, is addressing legacy debt. He described Project Hoover not as a financing transaction but as an economic reform instrument designed to remove the burden of unresolved historical obligations that have weighed on the market.
He said, no market can sustainably attract fresh capital whilst carrying the weight of unresolved historical obligations. Recalling that in January, investors subscribed N501 billion in the Series 1 issuance, which was oversubscribed; and that is a sign of vote of confidence in the Federal Government.
Tegbe added that, Project Hoover offers investors an opportunity to participate in the stabilisation of one of Africa’s largest electricity markets while contributing to reforms that will generate enduring economic value.
“Our destination is clear: a financially sustainable, investment led electricity market that powers Nigeria’s industrial renaissance,” he said. “I encourage you to see this offering beyond a mere fixed-income instrument. It should be viewed as an opportunity to partner with the Federal Government in writing the next chapter of our economic story”, he averred.
