Former Minister of Power, Barth Nnaji, has raised concerns over the stagnation of Nigeria’s electricity sector, revealing that no major power generation project has secured financing in the country since 2015.
Nnaji made this disclosure on Monday while speaking at the 2026 conference of the Nigerian Association for Energy Economics in Lagos, where he delivered a comprehensive assessment of the challenges facing Nigeria’s power industry and outlined pathways for reform.
According to Nnaji, Nigeria’s power sector has experienced more than a decade of stalled investment, largely due to inconsistent government policies, weak infrastructure development, and the abrupt discontinuation of financing frameworks that once attracted global capital.
He noted that prior to 2015, Nigeria had begun to witness growing interest from international investors, driven by structured financing models and reforms aimed at liberalizing the electricity market. However, that progress has since been reversed.
“It is deeply concerning that since 2015, not a single major power plant has reached financial close in Nigeria,” Nnaji said. “This reflects systemic issues that must be urgently addressed.”
Nnaji identified policy inconsistency as a major factor discouraging both local and foreign investors. He explained that frequent changes in regulations and lack of continuity in government initiatives have created uncertainty, making long-term investments in the power sector increasingly risky.
Power projects typically require years of planning and billions of dollars in funding, making stability and predictability essential for investors.
“When policies change abruptly or are not sustained, it becomes impossible for investors to commit resources with confidence,” he said.
The former minister also pointed to the discontinuation of a financing framework that had previously supported power generation projects as a critical setback. According to him, the framework had begun to attract global capital before it was halted, disrupting ongoing efforts to expand generation capacity.
Industry stakeholders at the conference echoed similar concerns, stressing the need for government-backed guarantees and structured financing mechanisms to revive investor interest.
Beyond financing challenges, Nnaji highlighted Nigeria’s persistent infrastructure deficit as a major barrier to progress. He noted that while the country has made some gains in installed generation capacity, inadequate transmission and distribution systems continue to hinder effective power delivery.
Experts argue that without significant upgrades to these networks, increased generation alone will not translate into improved electricity supply for consumers.
In discussing the future of Nigeria’s energy mix, Nnaji emphasized the strategic importance of natural gas, describing it as the most viable resource for powering the country’s economy.
Nigeria holds some of the largest natural gas reserves in the world, yet challenges such as insufficient pipeline infrastructure and pricing issues have limited its utilization in power generation.
“Nigeria should leverage its gas resources to drive industrialization and ensure stable electricity supply,” Nnaji stated, adding that policy clarity and investment are needed to unlock the sector’s full potential.
Nnaji also expressed concern over the prolonged delays affecting key national projects, particularly the Mambilla Hydropower Project. The project, which is expected to significantly boost Nigeria’s power generation capacity, has faced years of setbacks due to funding issues and contractual disputes.
He described the delays as symptomatic of broader challenges in executing large-scale infrastructure projects in Nigeria.
“The Mambilla project has the potential to transform our power sector, but the continuous delays raise serious questions about our ability to deliver on critical infrastructure,” he said.
Participants at the conference called for comprehensive reforms to address the structural issues affecting Nigeria’s electricity sector. These include strengthening regulatory frameworks, ensuring policy consistency, and fostering collaboration between the public and private sectors.
Nnaji urged policymakers to adopt a long-term approach to energy planning, warning that short-term decisions could have lasting negative impacts on the sector.
“The power sector is too important for inconsistent policies. We need a stable and predictable environment that encourages investment and supports growth,” he said.
Despite the challenges, stakeholders expressed cautious optimism about the future of Nigeria’s power industry. They noted that the country’s growing population and increasing demand for electricity present significant opportunities for investment and development.
However, they emphasized that realizing this potential will require decisive action from government authorities to restore investor confidence and address existing bottlenecks.
As discussions from the Nigerian Association for Energy Economics conference continue to shape conversations around energy policy, attention will now turn to how policymakers respond to the issues raised.
For now, Nnaji’s assertion that no major power plant has been financed since 2015 serves as a stark reminder of the urgent need for reforms in Nigeria’s power sector.