No major power plant financed since 2015 — Nnaji

Nigeria's power sector continues to grapple with a critical lack of investment in new generation capacity, with former Minister of Power, Barth Nnaji, highlighting a stark reality: no major power plant has been financed since 2015. This prolonged stagnation, as reported by The Punch, points to a deep-seated problem of policy inconsistency that has deterred potential investors and developers. For a nation with such a significant energy deficit, this is not merely an economic issue but a fundamental impediment to national development and industrial growth.

Nnaji's assertion directly challenges any narrative of progress in the power sector, suggesting that despite various initiatives, the core issue of attracting and securing long-term financing for large-scale projects remains unresolved. Policy inconsistency creates an environment of uncertainty, making it exceedingly risky for investors to commit the substantial capital required for power plant development. This uncertainty can manifest in unpredictable regulatory changes, shifting government priorities, or a lack of clear frameworks for power purchase agreements and tariff structures.

The consequence of this investment drought is a power sector that struggles to meet the nation's growing demand, perpetuating the cycle of reliance on alternative, often more expensive, energy sources. From a Nigerian perspective, the inability to secure financing for essential infrastructure like power plants is a frustrating symptom of governance challenges that hinder the country's potential. Addressing this requires not just pronouncements of intent but a demonstrable commitment to stable, predictable, and investor-friendly policies that can unlock the much-needed capital for the sector's revitalization.