George Etomi, founder of George Etomi & Partners, recently discussed Nigeria’s power issues in an interview with CNBC Africa on May 27. He emphasized that the country faces a gas shortage for power generation primarily due to incorrect pricing and unpaid debts to gas producers.
President Tinubu has recently mandated the clearance of these debts, which amount to N3.3 billion and approximately $1 billion. Etomi believes that settling these debts will create a favourable environment for gas producers to supply the necessary gas to boost power generation.
Etomi also pointed out that increasing gas-to-power generation would attract investors, making the sector more viable. However, he noted that improvements in the distribution infrastructure are essential for the benefits of increased generation to be fully realized.
He stressed the importance of metering to track these changes effectively, stating, “We have to look at the entire value chain.”
Evaluating the performance of the Adelabu-led power ministry, Etomi acknowledged that managing the power sector is challenging due to its persistent and historical problems. He mentioned that no single solution can address all issues.
So, any minister entering the role must navigate complex issues across the value chain, from gas production to power generation, transmission, and distribution. Alignment and understanding of how these components interconnect are crucial for progress.
Etomi noted that the current power minister has been proactive, aiming to accomplish several goals. He observed that while the achievements in the first year of the Tinubu administration have been modest, there is still significant room for improvement. He specifically called for a review of the recent tariff increases for Band A users, citing widespread consumer pushback.