Nigeria must act with urgency and clear purpose to fix its power sector if it is to deliver reliable and affordable electricity, the Chairman of the Nigeria Economic Summit Group (NESG), Olaniyi Yusuf, has warned.
Speaking on a Channels TV programme, Yusuf criticised the slow pace of Nigeria’s power reforms, drawing a sharp comparison between Nigeria’s delayed Siemens Power Project and Egypt’s swift execution of a similar deal.
The Siemens Power Project, signed in 2019 and designed to boost Nigeria’s electricity generation from between 2,500 and 7,000 megawatts to 25,000 megawatts, only completed its first phase in early 2025. Phase two began in August 2025 — six years after the agreement was signed.
By contrast, Egypt signed an agreement with Siemens in 2015 to generate 16,000 megawatts and completed the project within just 18 months.
Yusuf said recent national grid collapses underline the cost of delays. “The issue of power, if we do not realise how important it was, the last two days have just been a stark reminder,” he said.
He called for a diversified energy strategy that reflects Nigeria’s regional strengths, advocating solar power in the north, hydroelectric power in the middle belt, and gas-fired generation in the south, alongside other renewable sources.
The NESG chairman also pushed for decentralising Nigeria’s electricity infrastructure, arguing that reliance on a single national transmission grid is no longer sustainable. He proposed regional grids supported by a self-connected, self-healing super grid, ensuring electricity is consumed close to where it is generated.
Beyond infrastructure, Yusuf identified liquidity constraints, financial stress and cost-reflective pricing as major obstacles in the sector. He noted that while solutions are well known, what is missing is the urgency the government has shown in projects such as the coastal highway.
On funding, Yusuf said the federal government cannot shoulder Nigeria’s estimated annual infrastructure requirement of $100 billion alone, especially with a national budget of about $42 billion. He stressed the importance of public-private partnerships (PPP) and an “all-of-government approach” that encourages both foreign and domestic investment.
Citing the telecommunications sector as a model of private sector-led growth, Yusuf warned that regulatory and security challenges persist. He disclosed that MTN suffered more than 9,200 fibre optic cable cuts in 2025, underscoring the need to classify telecoms infrastructure as critical national assets.
He also criticised the involvement of over 17 federal agencies in regulating the telecoms industry, saying excessive bureaucracy discourages investors and raises operating costs.
Yusuf urged the government to mobilise domestic savings from pension and insurance funds to finance infrastructure, while strengthening contract enforcement, dispute resolution frameworks and coordination between federal and state governments on land and community issues.
According to him, without decisive reforms and stronger collaboration with the private sector, Nigeria risks falling further behind peers that have demonstrated speed, clarity and commitment in infrastructure delivery.
