Business mogul, Tony Elumelu, has urged the federal government to privatise the nation’s transmission lines to boost electricity supply.
The privatisation, if done, would also promote economic growth in the country, he said.
He made the call in n interview with Bloomberg.
According to him, revamping the electricity sector is critical for revitalising the ailing economy, hence the need for the government to take action.
Elumelu, whose firms control 15 per cent of the nation’s electricity generating market, and who recently listed one of his power firms, Transcorp Power Ltd, noted that the growth of the industry is being hindered by inadequate transmission lines and a shortage of liquidity in the electricity market.
He said: 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 further stated that that to develop the nation’s vast gas reserves for power generation, President Bola Tinubu’s administration should attract investors and permit the private sector to oversee the transmission lines.
Nigeria privatised the generation and distribution components of its power sector but due to insufficient transmission capacity, power supply in the country has remained low. The transmission component of the power sector is still operates by the government.
