Nigeria is increasing efforts to change its struggling power sector, seeking $15 billion in private investment while ensuring support for its most vulnerable citizens.

At a World Bank energy summit in Tanzania, officials disclosed a strategic plan that balances higher electricity tariffs with targeted subsidies to cushion households.

As part of this initiative, households will receive 50 kilowatt-hours of subsidized electricity each month, either through direct consumption or vouchers.

The plan was made to help bridge the sector’s staggering $23 billion funding shortfall and extend electricity access to 86 million Nigerians still without power.

Despite being Africa’s largest natural gas producer and possessing abundant hydro and solar resources, Nigeria generates just 13,000 megawatts of electricity for its over 200 million citizens.

In contrast, South Africa, with a population of 62 million, produces 52,000 megawatts. Frequent blackouts and reliance on private generators remain the norm for those who can afford them.

The government’s blueprint includes doubling the number of households connected to the grid annually and increasing renewable energy’s share from 22% to 50% within five years. Although subsidies for about 15% of urban households were removed last year—tripling tariffs—the government still spent N2.2 trillion on subsidies. The new strategy aims to achieve full-cost electricity pricing by 2027 while maintaining protections for low-income households.

This power sector push mirrors Nigeria’s recent turnaround in its oil industry, where a mix of strategic reforms and decisive leadership revived production. By fostering an investor-friendly environment, the country is hoping to ignite a similar transformation in its electricity sector.