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Thursday, March 7, 2024

Tony Elumelu calls for privatization of electricity transmission lines to boost economic growth


Tony Elumelu, has urged the federal government to privatize the transmission lines to boost electricity supply and promote economic growth in the country.

Speaking to Bloomberg on Wednesday, Elumelu stated that revamping the electricity sector is critical for revitalizing the ailing economy, urging the government to take action.

He mentioned that the growth of the industry is being hindered by inadequate transmission lines and a shortage of liquidity in the electricity market.

Elumelu said that to develop the nation’s vast gas reserves for power generation, President Bola Tinubu’s administration should attract investors and permit the private sector to oversee the transmission lines.

In 2013, Nigeria privatized around 15 state-owned power generators, transferring them to private entities to boost efficiency, while the government-maintained control over the transmission infrastructure.

However, due to insufficient investment in these transmission assets, they remained inadequate and inefficient for delivering electricity to consumers.

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