Geometric Power CEO Advocates for States to Embrace PPPs for Effective Electricity Distribution
Prof. Bart Nnaji, former Minister of Power and current CEO of Geometric Power LTD, has urged state governments in Nigeria to leverage public-private partnerships (PPPs) for the procurement and management of power infrastructure within their jurisdictions. This call to action was made during his presentation titled “The Decentralization of the Nigerian Electricity Supply Industry (NESI) and the Role of the States in Rural Electrification: The Private Investor’s Perspective” at the first quarter 2024 Nigeria Public-Private Partnership Network (NPPPN) meeting.
Nnaji’s advocacy follows the recent passage of the Electricity Act of 2023, which grants states the authority to procure and oversee their power infrastructure. However, he highlighted challenges such as high costs, technological complexities, and potential competition issues if states individually control infrastructure.
He emphasized the importance of partnerships in establishing regional grids, citing the substantial costs involved in power infrastructure development. Nnaji stated, “There are several states that believe that they can easily jump in and begin to develop power infrastructure, but the sort of financial requirement to build power infrastructure is quite a lot.”
Nnaji stressed that partnerships, especially through PPPs, are crucial for success. He warned against states opting for sole control, which could lead to inefficiencies reminiscent of the past NEPA era.
Acknowledging the benefits of electricity decentralization, Nnaji also emphasized the necessity of cost-reflective tariffs to attract private sector investments. He advocated for state-level regulations to combat power theft, further enhancing sector sustainability.
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Michael Ohiani, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), echoed the importance of collaboration for Nigeria’s development, particularly in the energy sector. He commended states with enacted PPP laws, noting their role in facilitating private sector participation. Ohiani pledged ICRC’s support to NPPPN members pursuing PPP projects and states interested in enacting conducive regulations.
The call for PPPs underscores the ongoing efforts to modernize Nigeria’s energy infrastructure and improve electricity access across the country.
Source: The Whistler
