Abuja: Mr. Sunday Oduntan, the Executive Director and Chief Executive Officer of the Association of Nigerian Electricity Distributors (ANED), stated that high commercial lending rates are creating significant obstacles in financing power-sector infrastructure.
According to News Agency of Nigeria, Oduntan, in an interview, emphasized the need for concessional or “patient capital” to facilitate investment in the sector. He observed that the reluctance of investors and lenders to provide capital stems from insufficient assurance regarding the recovery of their investments.
Oduntan highlighted the necessity for increased investment, stronger commercial discipline, and comprehensive reforms within the electricity sector. He expressed concern over the challenges in attracting new investment into the distribution sector, pointing out regulatory and policy inconsistencies as deterrents to investor confidence and private-sector participation.
He further noted that the electricity sector in Nigeria remains structura
lly misaligned, with distribution operations lacking a unified commercial framework. Oduntan identified the transmission network as a major bottleneck in the electricity value chain, underscoring the urgent need for investment and modernization to enhance power availability to consumers.
To address these issues, Oduntan advocated for the reinforcement and modernization of the national grid, along with increased capital investment in transmission infrastructure and substations. He also called for the deployment of smart-grid technologies, such as Supervisory Control and Data Acquisition (SCADA), to improve real-time monitoring, control, and management of the transmission system.
Oduntan stressed the importance of preventing political interference in grid management, suggesting that stronger commercial and technical management could enhance the efficiency and reliability of the electricity system. He proposed greater private-sector involvement in transmission through structured public-private partnership (PPP
) models.
Additionally, Oduntan recommended the decentralization of the electricity system into regional or zonal networks where technically and economically feasible, while also strengthening real-time system operations. At the distribution level, he identified high technical and commercial losses, inadequate metering, and poor service quality as major challenges faced by Distribution Companies (DisCos).
He noted that frequent outages, low voltage, and unreliable electricity supply have eroded consumer confidence, while low revenue collection has hindered the DisCos’ capacity to invest in network expansion, maintenance, and service improvements.
To overcome these challenges, Oduntan called for a coordinated approach across the entire electricity value chain, anchored on stronger commercial discipline, transparent financial arrangements, increased private-sector investment, and effective regulation. He emphasized that a reliable electricity supply is crucial for Nigeria’s industrialization, job creation, e
conomic growth, and improved living standards.