Investments in the power sector in Nigeria and Africa are declining as a result of a number of issues, including revenue losses, inadequate regulations, and a lack of trust.
This was discussed in Sahara Group’s November 2022 report, “Energy Mix – The Challenges with Funding and Deploying Commercially Viable Renewable Energy Solutions,” which is a global player in power generation and distribution.
According to the report, which our correspondent in Abuja saw on Thursday, “Investors are less willing to invest in the African Power Sector at large due to some challenges.”
It outlined additional difficulties such as: losses in transmission and distribution, a tariff that doesn’t reflect costs, and problems with regulatory standards.
The report stated that inadequate maintenance, outdated infrastructure (such as transmission lines), and a sluggish expansion of infrastructure to accommodate the expanding population and development were the primary causes of losses in transmission and distribution.
It stated that “this occasionally leads to trips and eventually system collapse, which are significant financial losses.”
