Nigeria's Power Sector Lacks Major Financing for 11 Years

Prof. Barth Nnaji, chairman of Geometric Power Group, stated that Nigeria has not financed the construction of any major power plant in the last 11 years, highlighting the government's inconsistent policies as a significant barrier to the country's electricity growth.

Speaking at the 19th annual conference of the Nigerian Association of Energy Economists, Nnaji recalled that during his tenure as Minister of Power, Dr. Ngozi Okonjo-Iweala established a partial risk guarantee instrument that successfully financed the Azura Edo power plant.

He lamented that this instrument was discarded when the government changed, leading to a lack of financing for major power projects. Nnaji pointed out that Nigeria holds 210 trillion cubic feet of proven gas reserves that remain underutilized due to insufficient infrastructure.

He also noted the challenges posed by global energy transitions and emphasized the importance of cleaner fossil fuel options, particularly natural gas, for Nigeria's economic future.