In a recent keynote address at the 19th Annual Conference of the Nigerian Association for Energy Economics (NAEE), Geometric Power Group Chairman, Professor Barth Nnaji, highlighted a critical stagnation in Nigeria’s energy infrastructure. Addressing the theme “Evolution of Future Energy Mix in Africa,” Prof. Nnaji revealed that Nigeria has not successfully financed a major power plant in 11 years, a direct consequence of discarding vital risk-mitigation frameworks.
A Call for Policy Consistency and Gas-Driven Industrialization
In a recent keynote address at the 19th Annual Conference of the Nigerian Association for Energy Economics (NAEE), Geometric Power Group Chairman, Professor Barth Nnaji, highlighted a critical stagnation in Nigeria’s energy infrastructure. Addressing the theme “Evolution of Future Energy Mix in Africa,” Prof. Nnaji revealed that Nigeria has not successfully financed a major power plant in 11 years, a direct consequence of discarding vital risk-mitigation frameworks.
The Legacy of Risk Guarantees
Reflecting on his tenure as Minister of Power, Prof. Nnaji emphasized the success of the Partial Risk Guarantee (PRG) instruments developed in collaboration with then-Finance Minister, Dr. Ngozi Okonjo-Iweala.
“These instruments were the bedrock of investor confidence,” Nnaji noted. “The Azura-Edo Power Plant stands as a testament to what is possible when the government provides the necessary financial backstops. Unfortunately, the discontinuation of these guarantees has halted major investments for over a decade.”
Gas: The Bridge to Africa’s Future
While the global North pushes for a rapid transition to renewables, Prof. Nnaji maintains a pragmatic stance on Africa’s energy mix. He argued that:
• Natural Gas is non-negotiable: With over 210 trillion cubic feet of proven reserves, gas must be the primary driver of Nigeria’s industrialization for at least the next 20 years.
• Infrastructure is the Bottleneck: Despite our reserves, facilities like the Nigeria LNG are operating at 60% capacity due to gas unavailability and lack of transport infrastructure.
• Global Realism: Pointing to Europe’s return to coal during the Russia-Ukraine energy crisis, Nnaji cautioned Africa against abandoning fossil fuels prematurely before securing energy sovereignty.
A Vision for Continental Integration
Beyond domestic policy, Prof. Nnaji spoke on the potential for a Pan-African Power Grid. He highlighted the Democratic Republic of Congo’s Inga Dam, capable of generating 100,000MW, as a viable source for Nigeria via a 1,000km transmission line to Calabar.
“If we are to grow as a continent, we must think beyond borders,” he stated. “We have the resources; what we lack is the consistent policy willpower to harness them.”
To rescue the Nigerian power sector, Prof. Nnaji outlined five critical pillars:
1. Policy Stability: Reinstating risk guarantees to attract global capital.
2. Cost-Reflective Tariffs: Ensuring the value chain remains commercially viable.
3. Infrastructure Investment: Building the pipelines necessary to move gas to turbines.
4. Legislative Protection: Strengthening laws against energy theft and vandalism.
5. Methane Management: Aligning gas production with modern environmental standards.
Professor Barth Nnaji continues to lead the conversation on energy self-sufficiency through Geometric Power and his ongoing advocacy for structural reform in the African energy landscape.
