Some experts have called on the federal government to fully liberalise the electricity sector to unlock $10 billion in private sector investments and ensure reliable power supply.
In separate interviews in Lagos on Sunday, the experts said further liberalisation of the sector by the government would attract substantial investments.
The chief executive officer of Economic Associates, Ayo Teriba, urged the government to relinquish its monopoly and open up the industry to more private sector participation across its value chain.
“Just as the liberalisation of the telecommunications sector over two decades ago transformed it from a few thousand users to over 200 million today, electricity sector liberalisation could lead to a similar boom,” Mr Teriba said.
While the economist acknowledged that initial liberalisation might result in high service costs, he predicted that competition would eventually drive down prices.
Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria, corroborated Mr Teriba’s views.
He said over-regulation and government interference remained disincentives to private sector investments.
“For the electricity sector to thrive, the government must step back and limit its role to regulation, as was done with the telecommunications industry,” he said.
Mr Igbrude maintained that government control is a major factor in ensuring growth in the sector.
Similarly, Yemi Kolawole, chief executive officer of Topian Energy, expressed optimism about the sector’s potential, provided there were assurances of reasonable returns on investment.
He also advocated directing a significant portion of private investments toward renewable energy, aligning with global trends and addressing climate change concerns.
“As fossil fuels harm the environment and worsen climate change, it is prudent for Nigeria to follow the global shift towards green energy,” Mr Kolawole added.
The Nigerian government recently stated the country requires $10 billion in investments over five to ten years to achieve a 24-hour electricity supply.
The Minister of Power, Adebayo Adelabu, made this known during a meeting with Jobson Ewalefoh, director-general of the Infrastructure Concession Regulatory Commission (ICRC), in Abuja.s
Mr Adelabu emphasised the need for private-sector partnerships to address the challenges in the power sector.
(NAN)
