- Tony Elumelu emphasized need for focus on power sector enhancement and effective regulations
- Mention of TransAfam Power Plant’s challenges with gas supply and GE’s potential withdrawal
Insufficient gas supply is impacting the functionality of national power plants, according to Tony Elumelu, the Founder of The Tony Elumelu Foundation. He suggested that this issue was also influencing the availability of electricity within the country.
Speaking at the Nigerian Bar Association’s Annual General Conference on Sunday, Elumelu expressed the need for the nation to focus on enhancing its power sector and establishing effective regulations to ensure a consistent power supply to citizens, educational institutions, medical facilities, and industries.
Elumelu added, “Is it not ironic that a country with abundant gas resources cannot optimally operate its power plants due to lack of gas. I have seen, the beginnings of what we can do. Let me give you an example: The TransAfam Power Plant that belongs to Transcorp Group has an installed capacity of 1000 megawatts. The Federal Government of Nigeria made a significant investment to acquire 240 megawatts fast power turbines from General Electric. For context, 240 megawatts of electricity can power about one million homes in Nigeria. Yet GE has threatened to pull out of the project, because our nation – with some of the largest gas reserves globally, could not provide 65mm scuffs of gas needed for the comprehensive testing of the installed fast power plant.”
He pointed out that despite having dormant gas fields, the country possesses a significant amount of private capital that could be utilized as essential funds for gas production.
He noted that restrictions imposed by regulations and policies driven by self-interest were impeding the progress of these investments.
The founder of the foundation went on to mention that the Nigerian private sector has been demonstrating the nation’s capabilities, innovation, and establishment to the international community. However, he remarked that there were only a limited number of global enterprises originating from Nigeria.
Elumelu emphasized that both energy shortages and the disillusionment of the youth, leading to the loss of talent among other issues, were also adversely affecting the nation.
Commenting on the security situation of the country, he said, “Insecurity breeds disorder, feeds intolerance, and destroys opportunity. Let us invest in security. Banditry, kidnapping, oil theft, pipeline vandalisation, transmission line cuts-create uncertainties, fears, deprivation, poverty, and untold hardship.”
He also noted that the recent policies of the government will have good long-term effects in the country. According to Elumelu, Nigeria is a country of entrepreneurs and needs to become deliberate about its people.
He said, “Investment in our youth — we need to renew our commitment to our youth, provide them with the means to succeed in Nigeria — not beyond Nigeria. This means not just investment in our education system, but in our entrepreneurial culture.
“Nigeria is a nation of entrepreneurs — you know me as an investor and champion of entrepreneurs – I know the social and economic returns entrepreneurship creates. Let us create a joined-up government task force to champion at the highest level, our young and our entrepreneurs.”
He further admonished private sector leaders to see themselves as the engine of innovation, source of investment, and the creators of jobs. He stated that the nurturing of entrepreneurship is not merely an economic endeavour, but a social responsibility.
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