Genesis Energy Group has revealed plans to deliver at least 10.5 gigawatts (GW) of power across Nigeria and other African countries in the next five years.
Akinwole Omoboriowo II, chairman of Genesis Energy Group, said the company will deliver an average of 2 gigawatts annually across Africa, “with a significant portion of that coming to Nigeria.”
He made this known to the press at the just concluded Nigeria Energy Leadership Summit 2024, themed Breaking Barriers in the New Energy Era: Clean, Reliable, and Sustainable, held in Lagos.
“We’ve partnered with several organisations, including the US government, to structure, finance, and manage energy projects. In five years, we aim to reach at least 10.5 gigawatts, with much of that dedicated to empowering our people here at home,” he said.
Nigeria’s power sector has been sinking in the mire of its undoing – from low metering adoption and infrastructural deficits to incessant grid failures.
So far in 2024, the country has recorded the eighth partial and total grid collapse, leading to the call for public stakeholders’ meeting by the Nigerian Electricity Regulatory Commission (NERC).
Omoboriowo II also expressed his approval of the government’s decision to end subsidies in the power sector.
Read also: Genesis to invest $10bn in African climate initiatives
He believes that continuing subsidies would be unsustainable for a country like Nigeria, which is grappling with financial challenges.
Omoboriowo explained that a nation struggling with working capital cannot afford to keep subsidising its power sector without risking bankruptcy. He emphasised that Nigeria’s financial constraints make such subsidies unrealistic.
He also encouraged Nigerians to take advantage of the opportunities presented by the new Electricity Act 2023, stating that addressing the country’s energy crisis should be a shared responsibility.
“For the first time, the Nigerian power sector is being commercially driven, not subsidy-dependent. Subsidies lead countries to bankruptcy. A nation struggling with working capital simply doesn’t have the funds for that. Nigeria cannot afford to subsidise the energy sector,” he said.
As an economist, Omoboriowo added, “We can’t continue with subsidies. Whether your projects are big or small, the key is to put your full effort into them and seize the opportunities under the Electricity Act 2023. This will ultimately benefit Nigeria.”
Addressing the high cost of switching to renewable energy, Omoboriowo acknowledged the challenges, especially given the tough macroeconomic conditions.
“It’s important to understand that Nigeria is part of the global economy. The socio-economic challenges are not unique to us, and they are certainly affecting the energy supply. But the reality is, it’s not going to be cheap—it’s a difficult situation globally.”
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