Nigeria's power sector is generating a lot of interest from foreign companies who are ready to invest, but only if the federal government can create an enabling regulatory framework.

Infrastructure financiers Africa Finance Corporation (AFC) say a lot of heavy weight foreign companies will enter Nigeria when the enviroment is conducive.

'There are large companies who specialise in the power space who have several billion dollars available to invest and we’ve seen a number of those companies pass through Nigeria and express some interest in coming in,' says Andrew Alli, chief executive at the AFC, in an interview with Reuters.

Nigeria is home to Africa’s biggest oil and gas industry but faces chronic power shortages. Solving the power crisis could unlock the country's full potential and yield huge returns for investors.

The administration says its keen to reform the power sector, and formed a task force last month, which announced a new privatisation plan.