Kola Adesina says debt resolution, technology, and collaboration could reposition Nigeria as Africa’s power hub
Group Managing Director of Sahara Power Group, Kola Adesina, has described Nigeria’s power sector as central to the country’s economic and industrial transformation, noting that renewed reforms, rising investor confidence, and technological innovation are creating fresh opportunities for sustainable growth.
Speaking on the theme “State of the Power Sector and Opportunities Ahead,” Adesina said the industry is witnessing a turning point driven by coordinated efforts to resolve long-standing structural and financial challenges.
According to him, unprecedented collaboration among the Federal Government, the Ministry of Power, regulatory agencies, power sector operators, the Central Bank of Nigeria, commercial banks, and multilateral development institutions is laying the foundation for long-term sector stability.
Adesina expressed optimism that the momentum would be sustained into 2026, resulting in improved efficiency, enhanced sustainability, and increased electricity supply for Nigerians.
He commended the Federal Government for addressing liquidity constraints in the sector through the settlement of legacy debts, noting that the move is already helping to restore confidence and unlock new investments across the power value chain.
The Sahara Power Group chief said noticeable progress has also been made in metering and service delivery, adding that growing cooperation between regulators and operators would further optimise the electricity value chain and improve supply reliability for end-users.
He disclosed that the sector is set to experience wide-ranging distribution network reforms, including large-scale infrastructure rehabilitation, deployment of Advanced Metering Infrastructure (AMI), and the introduction of robust Customer Relationship Management (CRM) systems. These initiatives, he said, are aimed at reducing Aggregate Technical, Commercial, and Collection (ATC&C) losses while improving operational efficiency.
Adesina reaffirmed Sahara Power Group’s commitment to working closely with stakeholders to ensure reliable electricity becomes a cornerstone of national development. He noted that Sahara Power currently accounts for about 20 per cent of Nigeria’s total electricity generation.
Sahara Power’s portfolio includes Egbin Power Plc, the largest thermal power plant in sub-Saharan Africa, First Independent Power Limited, and Ikeja Electric.
He revealed that the group is advancing plans to raise dispatched generation capacity to between 6,500 megawatts and 7,000 megawatts, while also pioneering the establishment of a data centre to support innovation and operational expansion.
According to him, Sahara Power plans to invest significantly in both gas-fired and renewable energy projects over the next three to five years, with the objective of delivering affordable, reliable, and sustainable power to households and industries.
Adesina explained that the proposed data centre will deploy real-time analytics, predictive maintenance tools, and advanced cybersecurity systems, working in collaboration with government agencies and system operators to boost efficiency and transparency across the sector.
On the issue of power sector loans, Adesina said engagements with the consortium of banks involved remain positive, expressing confidence that the process will be concluded successfully. He noted that the loans, which mature in 2034, are being serviced in strict compliance with agreed terms.
He disclosed that Sahara Power has so far repaid the naira equivalent of $438 million, representing 73 per cent of the original $600 million loan, despite liquidity pressures arising from debts owed to the company and its gas suppliers.
As of March 31, 2025, Adesina said outstanding debts owed to Sahara Power and its gas suppliers had been reconciled at ₦1.514 trillion, adding that the government’s ongoing legacy debt payments would support full settlement of obligations to lenders, suppliers, and service providers.
He attributed renewed investor confidence in the sector to policy reforms under President Bola Ahmed Tinubu, describing the administration’s infrastructure agenda as bold and forward-looking.
Adesina said improvements in policy clarity, exchange rate stability, moderating inflation, and easing interest rates are enabling power sector investors to plan with greater certainty.
Industry experts have also observed that the Federal Government’s Legacy Debt Resolution initiative for generation companies and gas suppliers could serve as a major catalyst for restoring value-chain stability.
Meanwhile, data from the Nigerian Electricity Regulatory Commission (NERC) show that more than 2.3 million electricity meters have been deployed nationwide under various phases of the National Mass Metering Programme since 2020.
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