President Tinubu highlighted the failure of Nigeria’s power sector privatisation, noting that despite being privatised a decade ago, the national grid only fulfills about 15% of the country's electricity demand. This shortfall has resulted in over 90 million Nigerians without access to electricity, leading to an overreliance on costly self-generation, supplying 40% of the nation's power needs. The President emphasized the need for a thorough recapitalization of power distribution companies, calling for a total of N2 trillion investment and a review of tariffs.
During the Nigeria Electricity Supply Industry roundtable, represented by the Special Adviser, Energy and Infrastructure, Office of the Vice President, Sodiq Wanka, President Tinubu pointed out the stagnant growth in the national grid's capacity over the past decade, indicating a meager increase from just over 3,000MW to approximately 4,000MW today, far below the 40,000MW target set by the Federal Government before the sector's privatisation.
He attributed the sector's underperformance to various issues, including financial, governance, and operational challenges. The President stressed the urgent need for addressing commercial problems, improving the investment appeal of the sector, and restructuring tariffs to reflect actual costs and loss levels throughout the value chain, encouraging adequate investment cost recovery. He also highlighted the necessity of clearing historic sector debts and creating a clear roadmap for the future, urging stakeholders to collectively strategize on the way forward.
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