Tony Elumelu, a renowned entrepreneur and philanthropist, has called for more investment in Nigeria’s power sector to address the country’s energy challenges.
Elumelu, who is the founder of the Tony Elumelu Foundation (TEF) and the chairman of Transcorp Power Limited, made this call recently in Abuja at the Nigerian Bar Association (NBA) annual general conference.
In his address, Elumelu expressed his concern over the “ironic” situation where Nigeria possesses substantial gas reserves but struggles to efficiently operate its power plants due to a lack of gas supply. He emphasized the importance of establishing regulatory frameworks that can ensure a consistent and robust power supply to support critical sectors such as healthcare and industries.
He cited the example of the TransAfam Power Plant, which has an installed capacity of 1000 megawatts but could not receive enough gas for testing the 240 megawatts fast power turbines acquired from General Electric (GE).
He said GE has threatened to pull out of the project because Nigeria could not provide 65mm scuffs of gas needed for the comprehensive testing of the installed fast power plant.
“For context, 240 megawatts of electricity can power about one million homes in Nigeria,” he said.
He blamed the situation on a “short-sighted regulatory regime and self-serving policies” that hinder gas production and utilisation in the country.
He said Nigeria has idle gas fields, and there is so much private capital to make the needed investments for gas production, but the regulatory environment is not conducive.
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Regulatory reforms
Elumelu urged the government to create regulatory structures that deliver to hospitals and industries the sustainable, robust power supply that the country so urgently needs.
He said Nigeria needs to reform its power sector and attract more investment to improve its electricity generation, transmission and distribution.
He also advocated for the passage of the Petroleum Industry Bill (PIB), which has been pending for over a decade, to provide a clear legal framework for the oil and gas industry.
He said the PIB would help to address some of the challenges facing the sector, such as fiscal terms, environmental issues, community development, local content and governance.
He said the PIB would also help to unlock Nigeria’s potential as a gas hub in Africa and enhance its contribution to global energy security.
Women empowerment
Elumelu also stressed the importance of investing in women as a way of promoting economic development and poverty reduction.
He said women are key drivers of entrepreneurship and innovation in Africa and should be supported to succeed.
He said his foundation, TEF, has empowered over 15,000 African entrepreneurs with seed capital, training and mentorship since 2015, with about 30% of them being women.
He said his businesses also promote gender equality and women’s leadership, as women occupy key positions in his organisations.
“Let us invest in our women. When a woman succeeds, families and communities are lifted out of poverty. It is no surprise that in my businesses, women lead and flourish,” he said.
Security challenges
Elumelu also expressed concern over the security challenges facing Nigeria, such as banditry, kidnapping, oil theft, pipeline vandalism and transmission line cuts.
He said these challenges create uncertainties, fears, deprivation, poverty and untold hardship for Nigerians.
He called for collective efforts to tackle the security threats and restore peace and stability in the country.
He said security is essential for economic growth and social development, as well as for attracting investment and creating jobs.
Tony Elumelu’s address at the NBA annual general conference serves as a powerful call to action. It highlights the urgency of investing in Nigeria’s power sector to tap into the nation’s abundant gas resources and eliminate power shortages. Additionally, the imperative of empowering women and addressing security challenges are key components of the nation’s journey towards progress and prosperity. Nigeria stands at a crossroads, with the potential for transformative change within reach, provided that the necessary steps are taken to address these critical issues.