LAGOS, NIGERIA — Former Nigerian Power Minister, Professor Barth Nnaji, has called for immediate and radical reforms to address the country’s electricity sector’s instability. Addressing a gathering at Abia State University, Uturu, Nnaji highlighted the need to restore Power Purchase Agreements (PPAs) and settle billions in outstanding debts.
The expert recommended crucial steps, including resolving about ₦6.8 trillion in power generation debts and over ₦200 billion owed to distribution companies. Nnaji also suggested introducing cost-reflective tariffs and constructing a 765KV national super grid to prevent widespread blackouts.
Nnaji emphasized the importance of utilizing Nigeria’s natural gas reserves, which account for 75 per cent of the country’s electricity. He further advised promoting embedded generation and reevaluating distribution company coverage areas to enhance efficiency.
Comparing Nigeria’s power sector with those of India, China, Brazil, and the United States, Nnaji expressed concern over the country’s lack of expansion in power generation over the last decade. He cautioned that without financial guarantees, like the World Bank-backed Partial Risk Guarantee, attracting investment remains challenging.
The former minister questioned state governments’ability to independently foster large-scale power investments, despite the recent decentralization. He warned that delays in new power plants could leave Nigeria behind in electricity generation. Nnaji commended the government’s committee for recovering 1,600 megawatts but emphasized the need for up to 100,000 megawatts by 2040 to reach a higher-middle-income economy status, supporting continued government subsidies to avert sector collapse.
Source: arise
