Nigeria's Power Sector Stagnates Since 2015, Nnaji Warns

Prof. Barth Nnaji, the former Minister of Power, addressed the Nigerian Association of Energy Economists at a conference in Lagos, highlighting that Nigeria has not financed any major power plant since 2015. He attributed this stagnation to policy inconsistencies and the dismantling of government-backed financing mechanisms that were initially designed to attract global capital for electricity generation projects.

Nnaji noted that Nigeria had begun to attract large-scale investments through a risk guarantee system, which was abruptly discontinued, leading to a collapse in financing momentum. He lamented that the last major power plant financing occurred 11 years ago, stressing that the discontinuation of these instruments sends negative signals to investors.

Nnaji also discussed the urgent need for investment in natural gas infrastructure, citing a significant shortfall in gas supply affecting existing assets, including NLNG. He pointed out that the Mambilla hydropower project symbolizes Nigeria's inability to execute major strategic assets.