Can Nigeria’s sustain power generation drive?

Nigeria's Ministry of Power, Adebayo Adelabu, has recently announced that the country's electricity generation has reached 5,000 MegaWatts this month, marking the first time in the last three years. This milestone comes as a significant achievement for the nation, highlighting progress and potential in the power sector. The increase in power generation capacity is a critical step towards addressing the longstanding challenge of inadequate electricity supply in the country. The news of Nigeria's power generation reaching 5,000 MegaWatts has been met with mixed reactions, with some viewing it as a cause for celebration while others emphasize the need for sustained progress and improvement. George Etomi, Founder of George Etomi & Partners, sheds light on the significance of this development in a recent interview with CNBC Africa. In the interview, Etomi discusses the challenges facing Nigeria's power sector, highlighting the importance of addressing issues such as gas availability, transmission capacity, and distribution infrastructure. He emphasizes the need for a holistic approach to power generation, transmission, and distribution to ensure that the electricity generated reaches end-users effectively. One key takeaway from the interview is the importance of creating an enabling environment for gas producers to provide the necessary fuel for power generation. Etomi emphasizes the role of market confidence in attracting investments and ensuring a steady supply of gas for electricity generation. He also underscores the need to improve distribution infrastructure to maximize the benefits of increased power generation capacity. Furthermore, Etomi provides a nuanced assessment of the performance of Nigeria's Ministry of Power under the Tinanbu administration. He acknowledges the challenges facing the sector, emphasizing the need for alignment across the entire value chain. While recognizing the modest achievements made so far, he also highlights areas for improvement, especially in terms of policy review and ensuring fair distribution of burdens and gains within the sector. The conversation extends to Nigeria's positioning in the energy sector, particularly in light of the country's $100 million investment in the proposed African Energy Bank. Etomi stresses the importance of strategic planning and diversification in energy sources, including gas, hydro, and solar power. He underscores the significance of affordability in energy tariffs to support industrial growth and economic development. Overall, the interview with George Etomi provides valuable insights into the current state of Nigeria's power sector, the challenges it faces, and the opportunities for growth and improvement. As the country continues to expand its power generation capacity and enhance its energy infrastructure, stakeholders must work together to create a sustainable and efficient power ecosystem that benefits all Nigerians.