Chairman of Genesis Energy Group, Mr Akinwole Omoboriowo II, has expressed satisfaction with government’s decision to put an end to subsidies given to the power sector.
Omoboriowo said a country struggling with working capital would find it difficult to keep up with continued subsidisation of the power sector, arguing that it could lead to bankruptcy.
He, however, urged Nigerians to leverage the opportunities provided in the Electricity Act 2023, saying solving the energy crisis in the country must be a collective responsibility.
Omoboriowo spoke to newsmen on the sidelines at the Nigeria Energy Leadership Summit 2024 themed: ‘Breaking barriers in the new energy era: Clean, Reliable and Sustainable,’ organised by Informa Markets in Lagos.
He said: “This is the first time the Nigerian power sector is commercially enabled. Before, it was subsidy-driven. Subsidy leads countries to bankruptcy. Where is a country struggling for working capital going to get money for subsidy? Nigeria doesn’t have that kind of money. They don’t have it.
“As an economist, I have assessed the situation, we are unable to pay for subsidies. We can’t subsidise the energy sector. Whether you are doing small things or you are doing big things, the main thing here is that if you put all your heart into it, you leverage the opportunities under the Electricity Act 2023, Nigeria will be better off.”
On cost being a factor hindering many Nigerians from switching to renewable energy, Omoboriowo said: “Let me first start by saying that when you look at the macroeconomic condition in Nigeria, or anywhere in the world today, it is very tough. And you and I can trace the steps because it is not just local. People must understand that Nigeria is not a country on its own in the world. We are part of the global economy. So, it is really sad what is happening to our people. The socio-economic crunch is real. And that was also affecting the energy supply. But, let me tell you, so that’s the reality, that it’s not going to be cheap. It is tough.”
On what Genesis was looking to achieve in the near future, he said: “As part of our journey, we acquired a few partners. Partners that worked with us to know how we structure our project, how we finance it, how we manage it, and how we serve it. One of these partners includes the United States government. So, if you ask me what our target is, our target is to be able to catalyze, structure and deliver an average of 2 gigawatts a year across Africa. Of course, charity begins from home in Nigeria. The ambition is a good chunk of that has to come home to Nigeria in empowering our people. So that in 5 years, Genesis, as a growing corporation, we get to a minimum of over 10.5 gigawatts.”
https://www.vanguardngr.com/2024/10/why-subsidy-free-power-sector-key-to-nigerias-growth-omoboriowo