Will decentralization transform Nigeria's power sector?

Nigeria's power sector is on the cusp of a transformation, with President Buhari empowering sub-nationals to take charge of building electric power stations and expanding distribution. This shift has garnered interest from various power stakeholders, who are keen to collaborate with states to enhance supply and distribution networks. George Etomi, the Chairman of West Power and Gas, shared insights on this pivotal development in a recent interview with CNBC Africa. Etomi emphasized the significance of decentralization in revolutionizing the country's power landscape. He highlighted the long-standing challenges posed by a centralized grid system and underscored the need for infrastructural investments to drive progress. One of the key hurdles facing the sector is the gas supply chain, which has historically operated on a best-endeavor basis, leading to inefficiencies and constraints in power generation. To address this issue, Etomi stressed the importance of establishing a robust gas-to-power infrastructure to ensure reliable energy supply. The transition towards renewable energy sources, such as solar power, presents an opportunity for states to leverage mini-grid systems and reach underserved communities. Etomi also emphasized the need for collaboration among states and existing distribution companies to prevent conflicts and optimize the use of infrastructure. The potential for increased power generation, improved tariff structures, and policy reforms are essential components in driving the sector's growth. As Nigeria embarks on this decentralization journey, stakeholders must navigate the complexities of funding, regulatory frameworks, and technological advancements to achieve sustainable development and meet the nation's rising energy demands.