Tony Elumelu, a Nigerian businessman who controls 15% of the country’s electricity market, has called for a comprehensive overhaul of the electricity grid to address longstanding issues with supply.
Elumelu, who heads several power sector companies, emphasized the need for more transmission lines and increased liquidity in the electricity market to address the ongoing challenges in the sector.
His words: ”Nigeria can generate around 13 GW of electricity but faces constraints that limit the delivery to the grid to approximately 4 GW.
”This shortfall forces a significant portion of the population to rely on home generators for power.
”The privatization of 15 power generators in 2013 was expected to improve the situation, but challenges persisted as the transmission lines remained state-owned without substantial investments in expanding the network.”
Elumelu proposed the privatization of transmission lines as a solution to enhance the efficiency of electricity delivery.
He also suggested that the government attract investors to develop Nigeria’s extensive natural gas reserves, selling them to power generators.
”The distribution segment of the power sector faces challenges as well, with 11 power distribution companies grappling with capital shortages and high tariffs imposed by the country’s electricity market regulator.
”These persistent issues have resulted in frequent blackouts, with a notable “total system collapse” occurring in September of the previous year due to an explosion at a transmission line, causing a complete shutdown of power generation,” he added.
