Melvin Onwubuke
Nigerian business tycoon, Tony Elumelu, has asked the federal government to privatize the transmission lines to enhance electricity supply and promote economic growth in the country.
Elumelu said in an interview with Bloomberg on Wednesday that the restructuring of the electricity sector is crucial for the recovery of the economy, and called on the government to take action, according to nairametrics.
He stated that insufficient transmission lines and a lack of liquidity in the electricity market are hindering industry’s growth.
“Even where you generate electricity, the grid cannot take it, so it’s a problem for us.
“Some institutions have idle gas assets or fields. Government should take some of these and let Nigerians who have the resources and means to invest in gas take them.
“I am advocating that let us privatize transmission lines,” Elumelu noted.
He said that the administration of President Bola Tinubu should attract investors and allow the private sector to oversee the transmission lines, in order to develop Nigeria’s vast gas reserves for energy production.
Recall, Nigeria privatized around 15 state owned power plants in 2013, transferring them to private firms with a view to increasing efficiency, while the government maintained control of transmission infrastructure.
However, due to insufficient investment in these transmission assets, they remained redundant and inefficient for delivering electricity to consumers.
Nigeria currently struggling with poor electricity supply, leading to individuals and companies relying on diesel-fueled generators to run businesses and industries.
