Nigeria’s power sector is poised for significant growth and development, according to Kola Adesina, Group Managing Director of Sahara Power Group. Adesina emphasized that the sector’s prospects are promising, driven by renewed reform-inspired investment, technological innovation, and multi-stakeholder collaboration. The sector’s growth is crucial for the nation’s economic and industrial development.
The Federal Government’s efforts to address liquidity challenges in the sector, including the settlement of legacy debts, are expected to drive new investments and stabilize the sector. Adesina commended the government’s intervention, noting that it will facilitate the full settlement of outstanding loans to banks, gas suppliers, and technical service providers.
Sahara Power Group, a leading player in the sector, is committed to working with stakeholders to achieve a future where reliable electricity is the bedrock of national development. The company’s subsidiary, Sahara Power, generates about 20% of the country’s total power and is planning to increase its dispatched generation capacity to between 6,500MW and 7,000MW. Sahara Power is also investing in gas and renewable sources to achieve additional generation capacity within the next three to five years.
The company is pioneering the launch of a Data Centre to foster expansion and innovative operations, leveraging real-time data analytics, predictive maintenance, and cybersecurity. This initiative is expected to enhance overall sector efficiency and transparency, working alongside the Federal Government and system operators.
Adesina noted that promising conversations with the consortium of banks involved in the power loans are ongoing, with a positive end in sight. The loans, which are contractually due for full payment in 2034, are being serviced diligently, with a total debt of $438 million paid to date, representing 73% of the original loan of $600 million.
The government’s Legacy Debt Resolution plan, targeted at Generation Companies (GenCos) and gas suppliers, is expected to stabilize the value chain and restore investor confidence. The plan has already shown positive results, with over 2.3 million new meters deployed under the National Mass Metering Programme (NMMP) phases since 2020.
The power sector’s growth is critical to Nigeria’s economic development, and the current efforts by the government and private sector players are expected to yield significant results. With clear policy reforms, stability in the exchange rate, and a moderated interest rate, investors can now plan with a higher sense of predictability and conviction. The sector’s prospects are promising, and the ongoing collaboration between stakeholders is expected to drive sector-wide growth, translating to greater efficiency, sustainability, and more power for Nigerians.
