“Leader in Nigeria’s Electricity Market Demands Overhaul to Address Supply Issues”

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Tony Elumelu, a prominent Nigerian businessman commanding a significant stake of 15% in the nation’s electricity market, has voiced a pressing need for a comprehensive revamp of the power grid to address longstanding issues with supply.

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In an interview with Bloomberg, Elumelu, who oversees various power sector enterprises, emphasized the critical requirement for expanded transmission lines and enhanced liquidity within the electricity market to combat years of inadequate supply hindering economic progress.

“As a country, we can’t maximize our productivity despite abundant natural resources due to insufficient electricity,” Elumelu stressed, highlighting the fundamental role of power in driving economic growth.

Despite Nigeria’s capacity to generate approximately 13 GW of electricity, only about 4 GW is effectively delivered to the grid due to infrastructure limitations. Consequently, a significant portion of the population heavily relies on home generators for power. While the privatization initiative in 2013 transferred 15 power generators from state to private ownership, the state-owned transmission lines and insufficient investment in network expansion have impeded effective electricity distribution.

Elumelu proposed the privatization of transmission lines to address grid limitations, advocating for increased private sector involvement. Additionally, he recommended government efforts to attract investors for the development of Nigeria’s abundant natural gas reserves, crucial for powering electricity generation facilities.

Furthermore, Elumelu highlighted challenges in the distribution segment, where 11 power distribution companies are grappling with capital shortages and burdensome tariffs imposed by regulatory bodies. These persistent issues have led to frequent blackouts and, notably, a “total system collapse” witnessed in September of the previous year, triggered by a transmission line explosion that brought power generation to a standstill.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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