Accelerating Nigeria’s power sector investment drive

Nigeria's Minister of Power has announced plans for a $20 billion investment in power plants and transmission lines to boost power generation to 20,000 megawatts by 2026. Professor Barth Nnaji, Chairman of Geometric Power Group and former Minister of Power in Nigeria, shared his insights on the feasibility of these ambitious plans and highlighted key challenges during a recent interview on CNBC Africa. The discussion revolved around the potential for accelerating investment in the power sector, addressing system failures, promoting renewable energy utilization, and tackling the metering gap. The $20 billion investment proposed by the government signifies a significant leap forward in the power sector, as Nigeria has not witnessed the construction of major power plants in the last eight years. With an existing installed capacity of around 13,000 megawatts, the target of adding another 7,000 megawatts within three years seems achievable. However, to reach the 20,000-megawatt goal, the government must actively support and expedite ongoing projects that have matured over the years. A critical aspect that requires attention is the transmission infrastructure, which plays a vital role in ensuring stability within the system. By investing in enhancing the transmission network, the government can mitigate the risk of system collapses, which have adverse effects on businesses and consumers alike. Professor Nnaji emphasized the urgency of bolstering the transmission infrastructure to establish a more robust and stable power system in Nigeria. While discussing the recent grid collapses under the new administration, Professor Nnaji expressed concerns about the impact of such failures on the economy and highlighted the need to address underlying issues, including vegetation management, reserve power availability, and vandalism. He underscored the importance of proactive measures to prevent system collapses and ensure a reliable power supply for all sectors of the economy. On the topic of renewable energy utilization, Professor Nnaji acknowledged the necessity of integrating renewable sources into the power mix. While emphasizing the significance of hydropower and gas-fired plants for bulk energy production, he called for continued efforts to diversify the energy sources in Nigeria. The transition to renewable energy forms a crucial part of the country's energy strategy, aligning with global trends towards sustainable and cleaner energy solutions. The conversation also delved into the pressing issue of metering in Nigeria, where an estimated 8 million consumers lack proper metering. The recent price increase for single-phase and three-phase meters by 40% raises concerns among consumers, especially regarding affordability and accessibility. Professor Nnaji stressed the importance of widespread metering to improve consumer satisfaction, eliminate estimated billing, and enhance operational efficiency across the power sector. Addressing the local capacity utilization challenges in meter production, Professor Nnaji advocated for policies that support made-in-Nigeria products. He underscored the significance of promoting local assembly and manufacturing of meters to enhance self-sufficiency, create employment opportunities, and reduce dependency on imported components. Encouraging partnerships with local assemblers and fostering innovation in meter production can drive economic growth and technological advancement within the power sector. In conclusion, Professor Barth Nnaji's insights shed light on the opportunities and challenges facing Nigeria's power sector as it embarks on a transformative journey towards increased investment, renewable energy integration, improved infrastructure, and enhanced metering systems. The government's ambitious plans represent a significant step towards achieving a more resilient and sustainable power sector, necessitating collaboration between public and private stakeholders to realize the nation's energy vision.