At the Nigeria Energy Leadership Summit 2024 in Lagos, Mr. Akinwole Omoboriowo II, Chairman of Genesis Energy Group, expressed his approval of the government’s decision to eliminate subsidies in the power sector. He argued that continuing these subsidies could lead Nigeria toward bankruptcy, particularly for a country struggling with working capital.
Omoboriowo stated, “This is the first time the Nigerian power sector is commercially enabled. Before, it was subsidy-driven. Subsidy leads countries to bankruptcy. Where is a country struggling for working capital going to get money for subsidy? Nigeria doesn’t have that kind of money.”
He urged Nigerians to seize the opportunities presented in the Electricity Act 2023, emphasizing that resolving the energy crisis in Nigeria requires collective responsibility from all stakeholders.
He acknowledged the macroeconomic challenges facing Nigerians, saying, “The socio-economic crunch is real. And that is also affecting the energy supply. But, let me tell you, that it’s not going to be cheap. It is tough.”
Addressing the financial barriers many Nigerians face when switching to renewable energy, Omoboriowo emphasized the global economic context, stating that Nigeria cannot be viewed in isolation.
Looking ahead, he outlined Genesis Energy Group’s ambitions: “We acquired a few partners to help us structure, finance, and manage our projects. One of these partners includes the United States government. Our target is to catalyze, structure, and deliver an average of 2 gigawatts a year across Africa, with a significant portion dedicated to empowering communities in Nigeria. In five years, we aim to achieve a minimum of 10.5 gigawatts.”
His statements underscore a commitment to transitioning Nigeria’s energy sector while navigating the complexities of both local and global economic conditions.