The Federal Government has said that Nigeria’s power sector required an investment of $5billion (N1.8 trillion) in the next five years to solve transmission challenges, The Guardian reports.

The government, which made this known in a document titled: “Investment Opportunities in Nigeria’s Power Sector,” stated that the national grid, which comprises of 330kV and 132kV networks currently, has a wheeling capability of 5,300 megawatts (MW) against 6,600MW installed capacity under constrained loading conditions.

According to the document, the network lacks adequate redundancy, which creates instability and frequent outages. The report said due to paucity of funding through the Federal Government Budgetary allocations, the sector is seeking different models of financing such as contractor finance of new transmission projects, Rehabilitate Operate and Transfer (ROT); and Management Contract.