Nigeria rejects World Bank report on its power sector

The Nigerian government has rejected the recent report by the World Bank on the state of Nigeria's power sector. According to the World Bank, 78 percent of consumers in Nigeria receive less than 12 hours of electricity supply daily, resulting in businesses losing $29 billion annually due to unreliable power supply. George Etomi, Director of Eko Electricity Distribution Company, joined CNBC Africa to discuss the issue and provide insights into the challenges facing the country's power sector. Etomi expressed his agreement with the federal government's rejection of the World Bank report, stating that it is unclear where the global lender sourced its figures. He emphasized that the statistics do not align with the reality on the ground, particularly for customers in banks D and E who receive minimum hours of supply. Etomi pointed out that while recent gas constraints have led to power outages, prior to these challenges, customers were receiving adequate power supply. The reliance on gas to generate power in Nigeria poses a significant challenge, with gas supply issues impacting the operation of thermal plants that provide the majority of the country's electricity. Challenges such as gas pricing, labor strikes, and maintenance issues have disrupted gas supply to power generation companies. However, with the resolution of the recent gas worker strike, there is hope for improved power generation and distribution in the near future. Despite ongoing issues, Etomi highlighted some progress in the sector over the last six to nine months. He credited the Central Bank of Nigeria for facilitating alignment among key players in the value chain and promoting greater accountability. Investments have been made in distribution infrastructure, metering, and transmission capacity to address bottlenecks and improve overall efficiency. Looking ahead, efforts are underway to ramp up power generation and enhance collaboration across the sector. With coordinated initiatives and increased investment, there is optimism for a more stable and reliable power supply in Nigeria. In conclusion, while challenges persist in Nigeria's power sector, stakeholders are working together to address longstanding issues and drive improvements in the country's electricity supply.