Nigeria will need to spend at least $10 billion annually over the next two decades, roughly $200 billion in total, to achieve stable and reliable electricity, Minister of Power Adebayo Adelabu said on Tuesday.

“For us to achieve functional, reliable and stable electricity in Nigeria, we need not less than $10 billion annually for the next ten to twenty years,” Adelabu told journalists after the event. He acknowledged that foundational challenges—ranging from outdated infrastructure to policy misalignment—must be addressed to make such spending effective.

The comments arrive at a time when faith in Nigeria’s power sector management is already low. Despite investing more than $29 billion in the sector since the 1999 return to democracy—including a $16 billion investment under the administration of President Olusegun Obasanjo—power supply remains erratic, with less than 4,500 megawatts reliably reaching homes and businesses out of an installed generation capacity of over 13,000MW. Transmission and distribution losses, technical inefficiencies, and corruption have continued to cripple progress.

Adelabu’s proposed $10 billion per year over 20 years, amounting to over N290 trillion at today’s exchange rate, is already being called excessive by energy analysts and economists, especially when viewed against Nigeria’s shrinking revenue base and ballooning debt profile.

With a population estimated at over 200 million, Nigeria certainly requires significant investment in generation, transmission, and distribution infrastructure. But experts say the core issue isn’t funding—it’s mismanagement.

“The problem is not getting the investors, the challenge is that investors do not see a clear line of sight for them to recover their money back and generate an alpha from the hurdle rate,” said energy analyst, Kelvin Emmanuel.

He attributed the situation to “improper pricing of tariff, improper pricing of gas, commercial losses from theft and estimated billing, technical losses from grid shutdown, lack of adequate transmission infrastructure, lack of guarantees in the commercial design of contracts and DisCo owners that are over-leveraged and are only skinning the cow to pay back debt.”

That fear is not unfounded. Nigeria is currently embroiled in a multi-million-dollar legal battle at the International Chamber of Commerce (ICC) in Paris over the Mambilla Hydroelectric Power Project, a $6 billion – 3,050MW project that was supposed to be Nigeria’s largest.

The contract, originally awarded to Sunrise Power and Transmission Company Limited, has become the subject of fraud allegations and counter-litigation between the Nigerian government and Sunrise. At the center of the controversy is Olu Agunloye, the former Minister of Power and Steel under President Obasanjo, who unilaterally awarded the over $6 billion contract to Sunrise in 2003 without following due process or securing Federal Executive Council approval.

The scandal has not only stalled progress on a project that could have significantly bolstered Nigeria’s generation capacity but also threatens to saddle the country with additional billions in damages if Sunrise wins its claims at the ICC.

In addition to Mambilla, Nigeria’s power sector is littered with abandoned or underperforming projects, from the Zungeru Hydroelectric Plant, still struggling with delays despite Chinese funding, to dozens of gas-powered plants built under the National Integrated Power Projects (NIPP) that remain underutilized due to poor transmission infrastructure and gas supply issues.

The privatization of power generation and distribution assets in 2013, hailed as a transformative reform, has largely failed to meet expectations. Distribution companies (DisCos) remain financially insolvent, with poor collection rates and weak service delivery. Many rely on government bailouts to remain operational, with the Federal Government still paying electricity subsidies to the tune of over N600 billion annually.

Adelabu, while highlighting the recent Electricity Act signed by President Bola Tinubu as a major step forward, acknowledged these systemic issues. He said decentralization now allows states to play active roles in power generation, transmission, and distribution, breaking from a federal monopoly that had long stifled innovation.

“This bill has achieved liberation and decentralization of the power sector to enable all levels of government—federal, state and local—to legally and morally play roles in the power sector,” the minister said.

Already, over eleven states have taken steps to develop independent electricity markets within their borders, with more expected to follow. But critics argue that legal autonomy alone won’t fix the power problem unless it’s matched with institutional accountability and execution capacity.

The Stark Contrast of Egypt’s Electrification Success

Adelabu’s proposed investment plan comes against the backdrop of a regional example that has achieved far more with less. Between 2014 and 2019, Egypt invested approximately $39 billion to double its electricity output and deliver a consistent power supply across the country.

Central to that investment was a landmark $4.4 billion deal with Siemens AG to construct three natural gas-fired power plants, completed in just 27 months. The plants—located in Beni Suef, Burullus, and New Capital—collectively added over 14,000MW to Egypt’s national grid, helping the country end frequent blackouts and even begin exporting electricity to neighboring countries.

In parallel, Egypt also took bold steps to gradually eliminate subsidies on electricity tariffs, helping to reduce fiscal pressure on the government while promoting efficiency. The reform-driven approach attracted private sector confidence and enabled rapid project execution—something Nigeria has struggled with for decades.

The Solar Push is Symbolic but Limited

The commissioning of the 2.5MW solar hybrid plant at NDA—part of the Energizing Education Programme (EEP) Phase II—is part of efforts by the Rural Electrification Agency (REA) to provide clean, off-grid energy to critical institutions. Abba Aliyu, REA’s Managing Director, described the project as “a national mission” aimed at enhancing academic performance, national security, and innovation.

But while the plant will reduce NDA’s reliance on diesel generators, its scale is a reminder of how small Nigeria’s renewable efforts are relative to the larger national challenge. Rural electrification accounts for less than 10% of Nigeria’s power mix, with limited contributions from solar, wind, or biomass.

Until large-scale generation and grid distribution systems are overhauled, and until fraud-ridden projects like Mambilla are tackled, analysts say symbolic efforts won’t yield the kind of transformational change Nigerians have waited decades for.

Airtel Africa Plc has commenced the second tranche of its ongoing $100 million share buy-back programme, valued at $55 million, days after releasing a significantly improved financial result that marked a sharp turnaround from last year’s losses.

The telecoms and mobile money operator confirmed the start of the new tranche in a disclosure filed with the Nigerian Exchange on Tuesday, the same day the buy-back resumed. This follows the successful completion of the first tranche worth $50 million in April, a component of the broader $100 million programme announced in December 2024.

The company said Barclays Capital Securities Limited has been engaged to execute on-market purchases of its shares in this second leg of the programme. Acting as a riskless principal, Barclays will make trading decisions independently, with no direct influence from Airtel Africa.

The company reiterated that the sole objective of the buy-back is to reduce its outstanding share capital, noting that all repurchased shares will be cancelled. The $55 million tranche is expected to be completed on or before 19th November 2025.

Capital Restructuring and Balance Sheet Strengthening

While the company stated the buy-back is strictly a capital reduction measure, analysts say it aligns with Airtel’s broader aim to strengthen its balance sheet and increase shareholder value following a volatile year dominated by currency shocks.

Reducing the company’s outstanding shares not only boosts earnings per share in future reporting periods but also minimizes future dividend payouts and other cash obligations tied to capital maintenance. It also signals confidence in the company’s valuation at a time when its stock has come under pressure across multiple exchanges where it is listed.

The share buy-back is unfolding amid improving macroeconomic conditions in some of Airtel Africa’s key markets, notably Nigeria, where currency instability had previously wiped off much of the group’s gains.

Background to the Programme

The current $100 million buy-back initiative, first unveiled in December 2024, was designed to be executed in two tranches.

The first tranche of $50 million began immediately after the announcement and concluded in April 2025. The newly announced tranche will take up the remaining $55 million, with Barclays overseeing the entire execution period.

This is Airtel Africa’s second share repurchase initiative. The first, also worth $100 million, was executed in 2024 as the company began deploying surplus capital to manage its share capital structure more efficiently.

Financial Recovery and Tariff Boost

The buy-back announcement comes as Airtel Africa basks in the glow of a robust financial turnaround. The company reported a pre-tax profit of $661 million for the year ending 31st March 2025, reversing a pre-tax loss of $63 million in 2024. After-tax profit stood at $328 million, compared to a $89 million loss last year.

The reversal was driven in large part by easing currency headwinds, especially in Nigeria, which had weighed down earnings in the previous fiscal year through massive foreign exchange and derivative losses.

According to the company’s latest earnings report, revenue grew by 23.2% in constant currency terms in the fourth quarter of the 2025 fiscal year and 17.8% in reported currency, underscoring the impact of strong operational execution and improved tariff frameworks in Nigeria.

“Our Q4 performance demonstrates the effectiveness of our strategy, with the recent tariff adjustment in Nigeria contributing significantly to revenue growth,” said Chief Executive Officer Sunil Taldar. “An improving operating environment and focused execution contributed to strong momentum in our financial results.”

Airtel Africa operates in 14 countries across sub-Saharan Africa and is one of the region’s leading providers of telecoms and mobile money services. The company has consistently positioned itself as a low-cost, high-growth operator despite facing persistent macroeconomic volatility, especially in its largest market, Nigeria.

With strong results, a leaner capital structure on the horizon, and shareholder confidence appearing to return, Airtel Africa’s strategic moves are expected to boost its stock performance in the coming quarters.

While the company hasn’t ruled out further buy-back programmes, the current one reflects its optimism about future earnings and the firm’s desire to return value to investors following a year marred by economic turmoil and FX crises in its core markets.

Tesla CEO Elon Musk is looking to bring the company’s highly anticipated robotaxi service to Saudi Arabia, a move that aligns with the Kingdom’s Vision 2030 plan and Tesla’s broader strategy to reignite growth through global expansion.

Musk made the pitch during the U.S.-Saudi Investment Forum in Riyadh, telling Saudi Minister of Communications and Information Technology, Abdullah Alswaha, that the Kingdom would be an ideal market for autonomous vehicles.

“Really, you can think of future cars as being robots on four wheels, and I think it would be very exciting to have autonomous vehicles here in the Kingdom if you’re amenable,” Musk said during a panel session at the forum.

Robotaxi as Tesla’s Recovery Bet

Musk did not give a timeline for the rollout in Saudi Arabia, but Tesla is set to pilot its robotaxi service in Austin, Texas, this June. The launch will mark the beginning of what Musk hopes will be a rapid global deployment of autonomous vehicles — a central pillar in Tesla’s next growth phase.

Tesla’s push into robotaxis is not just about innovation — it’s a calculated business move amid intensifying competition in the U.S. electric vehicle market. As sales slow globally and rivals such as Ford, Rivian, and Chinese automakers eat into Tesla’s share, the company is under pressure to find new revenue streams and growth frontiers.

Tesla has described the robotaxi service as a revolutionary model that can turn its cars into income-generating assets for owners. In a post from Tesla’s official account, the company said: “With the Robotaxi Network, your Tesla will be able to earn money while you’re not using it, essentially paying for itself — it will go to work, just like you.”

This concept is aimed at increasing the appeal of Tesla vehicles by offsetting their high purchase price with potential income from autonomous ride-hailing services — a game-changing pitch that no other automaker is currently offering at scale.

Dan Ives, a longtime Tesla bull and analyst at Wedbush Securities, reinforced the importance of this strategy.

“I disagree that the Waymo/Toyota is a groundbreaking deal and a threat to Tesla. Tesla will own the autonomous market in my view and no one can compete with their scale and scope. It starts in Austin in June then the autonomous journey begins. Key chapter of growth,” Ives said in a recent note.

Why Saudi Arabia?

Saudi Arabia is aggressively investing in cutting-edge technologies to reduce its dependence on oil. Vision 2030, the Kingdom’s economic diversification blueprint, has earmarked tech and mobility as priority sectors. The country has already released a regulatory framework for autonomous vehicles and is welcoming partnerships to accelerate their adoption.

On the same day Musk spoke in Riyadh, Saudi Arabia’s Transport General Authority announced a memorandum of understanding with Uber to launch robotaxis in the country. Uber plans to roll out autonomous vehicles with onboard safety operators in 2025, working in collaboration with Chinese tech firm Pony.AI. The MOU signals intent but does not yet guarantee deployment.

Uber is already a dominant player in Saudi Arabia’s ride-hailing market, operating both under its brand and through its regional subsidiary Careem, which serves 26 cities across the Kingdom. Pony.AI, however, carries some baggage. Its U.S. operations were suspended after California revoked its permit in 2022 over multiple safety violations.

Tesla, by contrast, has a global reputation and an integrated approach to autonomy, controlling both hardware and software development. That full-stack model — something competitors like Waymo, Uber, and Apple do not offer — positions Tesla to scale faster, according to analysts.

A High-Stakes Global Race

Tesla’s international ambitions for robotaxis are heating up at a time when global regulatory momentum around self-driving vehicles is beginning to shift. Countries like Saudi Arabia are opening up to autonomous technologies, seeing them as integral to smart cities and next-generation mobility.

If successful, the Saudi venture could serve as a launchpad for Tesla into the broader Middle East and North African markets, where public transportation infrastructure is still developing and tech-savvy populations are open to disruptive innovation.

Tesla’s competitors are not standing still. Alphabet’s Waymo and Toyota are teaming up to expand their robotaxi services in select U.S. cities. Apple is also quietly developing autonomous tech. But unlike Tesla, most of these players rely on third-party vehicle platforms or lack the end-to-end integration that gives Tesla control over production costs, software updates, and data.

However, the success of Musk’s pitch depends much on what happens in Austin. If Tesla successfully rolls out its robotaxi pilot next month, it could pave the way for international deals like the one Musk is seeking in Saudi Arabia. The company still faces regulatory scrutiny, public skepticism, and unresolved safety concerns, but the economic logic of autonomous fleets — vehicles that work around the clock, generate income, and reduce congestion — is too compelling to ignore.

Musk, never short on ambition, believes Tesla will not only dominate the EV space but also lead the future of transportation through autonomy. Saudi Arabia, with its big tech appetite and strategic need to diversify, may prove to be an ideal partner in that journey.