Prosper Okoye
Chief Executive Officer of Geometric Power Limited, Professor Barth Nnaji, has urged the Federal Government to restore the power purchase agreement with electricity firms and adopt additional measures to tackle the country’s persistent power shortages.
The agreement was introduced during reforms under former President Goodluck Jonathan around the 2013 privatisation of the power sector, guaranteed that electricity generated by private companies would be purchased at agreed prices over a long period, helping to attract investment.
However, the arrangement was later halted under former President Muhammadu Buhari over concerns about rising costs, weak alignment with demand and transmission capacity, and the risk of increasing public debt, prompting a review and suspension of some agreements.
Join our WhatsApp ChannelNnaji, a former minister of power, made the call while delivering a combined 30th, 31st and 32nd graduation lecture at Abia State University.
He also called for the settlement of about N6.8 trillion owed to power generation companies and over N200 billion owed to distribution companies, alongside the introduction of cost-reflective tariffs for distribution firms.
The energy expert advocated building a 765kV national super grid and decentralising transmission operations to prevent nationwide blackouts, as well as expanding development of Nigeria’s vast natural gas reserves, which account for most of its electricity generation.
He further urged policies to support embedded generation by distribution companies, greater regulatory attention to the distribution segment, and a review of coverage areas to improve efficiency.
Drawing comparisons with countries such as India, China, Brazil, Egypt and the United States, Nnaji said industrialising nations consistently expand electricity capacity, noting that Nigeria has added few new plants in over a decade.
He said investors would be reluctant to fund new power projects without financial guarantees such as the World Bank-backed Partial Risk Guarantee, citing high capital costs for power generation.
Nnaji added that even if the agreements were restored immediately, it would take years for new plants to come on stream, warning that Nigeria risks falling further behind in electricity supply.
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He, however, commended the administration of President Bola Tinubu for setting up a committee to recover stranded generation capacity and for reviving plans for a national super grid.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
