Energy Expert Nnaji Urges FG to Reinstate PPAs and Adopt Cost-Reflective Tariffs
Barth Nnaji, founder of Geometric Power and former minister of power, has called on the Tinubu administration to restore suspended power purchase agreements between the Federal Government and electricity firms. He warns that non-payment of the N6.8 trillion owed to generation companies and over N200 billion owed to DisCos has worsened Nigeria’s power crisis. Nnaji recommends allowing distribution companies to charge cost-reflective tariffs and investing in a 765 KV national super-grid with decentralized operations to prevent nationwide blackouts. He also urges development of Nigeria’s 210 trillion cubic feet of natural gas infrastructure, noting that thermal plants supply 75 percent of the country’s electricity. Highlighting stagnant growth in generation capacity, Nnaji points out that no major power station has been built in the last 12 years except the Azura-Edo and Geometric plants. He stresses the need for financial instruments like World Bank-backed guarantees to attract new investors and cautions that state governments lack the resources to underwrite large-scale power projects.
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