Nnaji Explains Why Nigeria’s Power Sector Privatisation Struggled

Former Minister of Power Barth Nnaji says the failure to implement cost-reflective electricity tariffs, flaws in the privatisation process and investors seeking quick returns weakened Nigeria’s power sector after the 2013 PHCN asset sale. Speaking at a business forum in Lagos, Nnaji said DisCos invested on the expectation that tariffs would reflect the real cost of supplying electricity. He added that the sector requires patient, long-term capital, with some investments taking up to 10 years to become profitable. He warned that power-sector debts now exceed ₦7 trillion and said government support helped prevent greater pressure on banks involved in the privatisation. At the event, energy experts also noted that manufacturers spent about ₦1.35 trillion on alternative power sources in 2025 due to grid failures and high operating costs.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.