Renowned Nigerian business magnate Tony Elumelu has called for urgent government intervention to revitalize Nigeria’s struggling power sector.
Elumelu, whose conglomerate controls a significant portion of Nigeria’s electricity generating market, highlighted key challenges facing the industry during a recent interview in Lagos.
With the listing of one of his power firms, Transcorp Power Ltd., at a valuation of $1.2 billion, Elumelu underscored the pressing need to address issues like inadequate transmission infrastructure and liquidity constraints within the electricity market.
He emphasized that these challenges are not only impeding the growth of the power sector but also hampering the overall economy.
Nigeria’s electricity generation capacity stands at 13,000 megawatts, but due to transmission limitations, only a fraction of this power reaches consumers.
The widespread reliance on home generators underscores the urgency of resolving the systemic issues plaguing the industry.
Elumelu proposed a multifaceted approach to address the crisis, including attracting private investment to develop the nation’s abundant gas reserves for power generation.
He advocated for privatizing transmission lines to enhance efficiency and scalability in electricity distribution.
Moreover, Elumelu urged the government to incentivize private investors to tap into Nigeria’s vast gas resources, which could substantially augment the country’s power supply.
He emphasized the need for strategic partnerships between the public and private sectors to modernize and expand the electricity infrastructure.
As Nigeria grapples with a currency crisis and economic instability, Elumelu’s call for decisive action in the power sector resonates as a pivotal step towards revitalizing the nation’s economy and improving the lives of its citizens.
