Feature/OPED
Accelerating New Investments in Nigeria’s Multi-Billion-Dollar Electricity Sector
After more than a decade of reforms and continuous repositioning of Nigeria’s electricity sector to attract private investments, the outlook remains positive and bullish but not much traction has been gained. While it appears that investors are seeking footholds in the sector, efforts must be intensified by stakeholders to accelerate and accommodate these new potential investments.
As Nigeria strides forward to consolidate its pride of place as Africa’s economic powerhouse, configuring its power supply architecture for optimum performance remains critical to realizing the lofty goal of an economic resurgence.
Nigeria’s electricity sector presents a significant untapped investment potential, given the country’s vast energy needs and the current supply deficit. While estimating the precise investment potential is challenging due to various factors, several reports and analyses provide insights into the magnitude of opportunities available.
Power generation investment potential According to the Nigerian Electricity Regulatory Commission (NERC), the country requires an estimated investment of $3.5 billion yearly over the next 20 years to achieve its desired power generation capacity. This translates to a potential investment of $70 billion in the generation segment alone.
The International Energy Agency (IEA) estimates that Nigeria needs to invest approximately $10 billion in its transmission and distribution networks to improve the reliability and efficiency of the electricity supply chain. Nigeria’s renewable energy potential, particularly in solar and hydropower, remains largely untapped.
The Rural Electrification Agency (REA) estimates that the country’s solar potential alone is around 25,000 megawatts (MW), requiring an investment of $23 billion to harness this potential fully.
The Nigerian Electrification Project (NEP), supported by the World Bank, also aims to attract $350 million in investments for off-grid and mini-grid solutions, targeting the electrification of underserved communities and remote areas. However, while the allure of renewable energy solutions is undeniable, the existing infrastructure needs more immediate attention, and optimizing it offers a pragmatic and potentially more immediate pathway to improving the overall efficiency and reliability of the electricity sector.
According to the African Development Bank (AfDB), Nigeria’s overall power sector requires an estimated investment of $100 billion over the next decade to address the current supply deficit and meet the country’s growing energy demands, while these estimates may vary based on different assumptions, scenarios, and timelines.
However, even with conservative estimates, the untapped investment potential in Nigeria’s electricity sector remains substantial, ranging from tens to hundreds of billions of dollars across various segments of the value chain.
For serious and ready investors looking to tap into the Nigerian electricity sector, there are several “low-hanging fruits” or relatively low-risk, high-potential opportunities that can be explored. Beyond the core generation, transmission, and distribution activities, several ancillary services also offer investment opportunities.
With the persistent power supply challenges faced by industries and commercial establishments, there is a significant demand for embedded generation solutions.
Investors can establish captive power plants or independent power projects (IPPs) specifically designed to cater to the energy needs of industrial clusters, estates, or large commercial complexes. This approach mitigates transmission and distribution risks while providing a dedicated and reliable power supply to customers.
The recently commissioned Geometric Power Plant in Aba, Abia State, serves as a compelling case study on how effective investment in power generation and distribution can buoy manufacturing and industrial hubs across Nigeria.
Aba, once the thriving commercial hub of south-eastern Nigeria, had suffered from a prolonged power crisis that crippled its once-vibrant industrial sector. However, the recent commissioning of the $142 million Geometric Power Plant, a 141MW integrated power project, has ushered in a new era of hope and economic revival for the city.
The Geometric Power Plant, a collaborative effort between the Abia State Government and private investors, has provided a reliable and cost-effective power supply to the Aba industrial cluster. This has had a profound impact on the region’s manufacturing sector, addressing one of the critical bottlenecks that had stifled its growth for decades.
The Nigerian Electricity Regulatory Commission (NERC) has also introduced a distribution franchising model that allows private investors to operate and manage specific distribution areas within the existing Distribution Companies (DisCos) networks.
This model presents an opportunity for investors to focus on improving service delivery, reducing losses, and enhancing revenue collection in targeted areas, potentially leading to better returns on investment. Promoting energy efficiency and demand-side management can help reduce the strain on Nigeria’s electricity supply chain.
Investors can partner with utilities or technology providers to implement energy efficiency programs, deploy energy-efficient technologies, or offer demand response services to industrial and commercial customers. These projects can generate revenue streams while contributing to the overall sustainability of the electricity sector.
Integrating smart grid technologies, such as advanced metering infrastructure (AMI), grid automation, and outage management systems, can significantly improve the efficiency and reliability of the electricity supply chain.
Investors can partner with utilities or technology providers to deploy these solutions, leveraging the growing demand for modernization and digitalization in the sector. In remote areas or underserved communities where grid extension is challenging, investors can explore the development of mini-grid systems or off-grid solutions powered by renewable energy sources.
These projects provide access to electricity and contribute to rural electrification and economic development. To capitalize on these investment opportunities, investors must carefully assess the regulatory environment, market dynamics, and risk factors associated with each value chain.
Partnering with experienced local firms, engaging with relevant stakeholders, and leveraging available government incentives and development finance can further enhance the viability and success of investments in Nigeria’s electricity sector.
In 2013, the Nigerian government embarked on a comprehensive privatization program, unbundling the state-owned Power Holding Company of Nigeria (PHCN) and selling majority stakes in generation and distribution companies to private investors. This move aimed to introduce competition, improve efficiency, and attract much-needed capital into the sector.
However, key attention has to be paid to the plethora of challenges and opportunities that continue to define this critical sector, such as revamping an underwhelmed infrastructure and retooling power-generating and delivery vehicles with 21st-century technology and management efficiency.
On the government’s side, removing bureaucratic bottlenecks and stabilizing the Naira to safeguard investments, need to be prioritized to boost investor confidence. The Nigerian Bulk Electricity Trading Plc (NBET) continues to play a critical role in the Nigerian electricity sector ecosystem, and its functions directly benefit investors in several ways.
As an off-taker and bulk purchaser, the NBET acts as the off-taker and bulk purchaser of electricity from generation companies (GenCos) in Nigeria. It enters into Power Purchase Agreements (PPAs) with GenCos and buys their generated electricity in bulk, which it then resells to distribution companies (DisCos) through vesting contracts.
Another primary role of NBET is to provide creditworthiness and payment assurance to GenCos and independent power producers (IPPs). NBET’s strong financial backing, guarantees, and government support help mitigate the risk of non-payment or default, which is crucial for attracting investments in power generation projects.
NBET also facilitates the negotiation and execution of Power Purchase Agreements (PPAs) between GenCos/IPPs and DisCos. These long-term PPAs provide revenue certainty and predictability for investors, enabling them to secure financing and ensure the viability of their power generation projects.
NBET also helps mitigate risks associated with the electricity market by acting as a buffer between GenCos and DisCos. It manages the payment and settlement processes, reducing the exposure of GenCos to the credit risk of individual DisCos and ensuring timely payments for electricity supplied.
By consolidating and managing the bulk purchase and resale of electricity, NBET helps stabilize the Nigerian electricity market. This stability and predictability create a more attractive environment for investors, as it reduces market volatility and uncertainty.
Overall, NBET’s role as a central counterparty in the Nigerian electricity market helps mitigate risks, provide payment assurances, facilitate project financing, and promote investments in energy generation projects. Its functions directly address some of the key challenges and concerns faced by investors in the sector, making it an essential component of the ecosystem.
Indeed, the federal government has established a robust Public-Private Partnership (PPP) framework to facilitate private sector participation in the development of power infrastructure.
This includes the establishment of the Infrastructure Concession Regulatory Commission (ICRC) and the National Integrated Infrastructure Master Plan (NIIMP).
The Nigerian Electricity Regulatory Commission (NERC) has also implemented various reforms to improve the regulatory framework and attract investments. These include the introduction of cost-reflective tariffs, the development of a Transmission Expansion Plan, and the establishment of guidelines for independent power projects (IPPs) and embedded generation.
Despite being a major oil and gas producer, Nigeria’s electricity supply has consistently lagged behind demand, with a current installed capacity of 12,522MW but an available capacity of just 3,876MW as of Q3 2022.
This supply deficit, coupled with ageing infrastructure and inefficiencies in the transmission and distribution networks, has resulted in frequent power outages and a reliance on expensive off-grid solutions.
The current state of Nigeria’s electricity sector presents a complex challenge, but within this challenge lies a transformative opportunity. While inadequate and unreliable power supply hinders the nation’s progress, it also unveils a compelling investment frontier brimming with untapped potential. The statistics speak volumes.
The Manufacturers Association of Nigeria (MAN) reports that the nation’s industrial capacity stands at a mere 50%, far below its true potential. This underutilization stems primarily from the unreliable power supply, forcing many industries to rely on expensive and inefficient self-generation methods.
MAN further estimates that the manufacturing sector alone requires 10,000 MW to operate at full capacity, a demand that will only grow with intensifying industrialization efforts. However, these challenges are not insurmountable.
They paint a clear picture: Nigeria craves a robust and efficient electricity sector. This hunger for reliable power presents a lucrative opportunity for strategic investors seeking long-term returns and positive societal impact.
As Africa’s largest economy and most populous nation, Nigeria’s energy needs are vast and growing, creating a conducive environment for investors who are not only driven by profit but also passionate about supporting the nation’s sustainable and equitable development.
Feature/OPED
Nigeria’s Olodo Uprising: An Assault on Critical Thinking
By Prince Charles Dickson, PhD
A sheep was passing and saw a lion crying inside a cage, trapped and helpless. The lion begged the sheep to rescue him, promising not to kill or eat it. The sheep refused at first, knowing fully well that a lion does not become a vegetarian because of captivity. But after much persuasion, emotional blackmail, and the sheep’s own gullibility, it opened the cage.
Now the lion was very hungry, having stayed in the cage for days without food. It quickly pounced on the sheep and was about to kill and eat it, but the sheep reminded him of his promise.
They were still arguing when other animals came passing. They sought to know what had happened. Both the lion and the sheep narrated their sides of the story, but because of fear, convenience, and a desperate need to gain favour in the lion’s eyes, all the animals took sides with the lion, except the tortoise, who claimed not to understand the whole scenario.
The tortoise asked the lion to show them where exactly he was before the sheep rescued him. The lion pointed at the cage.
The tortoise asked again, “Were you inside or outside when the sheep arrived?”
The lion replied, “I was inside.”
The tortoise then said, “Okay, enter and let us see how difficult it could be inside, because I am not getting the whole scenario.”
The lion entered, and immediately, the tortoise locked the cage. The lion was trapped again.
That story is not just folklore. It is a national diagnosis.
Nigeria today is full of trapped lions, gullible sheep, frightened animals, and very few tortoises. We have many people with opinions, but few with discernment. Many with certificates, but few with comprehension. Many with titles, but few with thought. Many who can quote policy, scripture, law, and ideology, but cannot ask the simple question that prevents disaster: “Wait first, how did we get here?”
That question is the beginning of critical thinking. Sadly, it is becoming an endangered species.
The easiest and most attractive national pastime remains buck-passing, especially with the bunch of leaders we have, some of whom can hardly peel a banana or wash an already white handkerchief. Not many of us want to take responsibility for anything, from personal life to family life, from community life to national life. The blame is always on the system, as if the system descended from the sky and imposed itself on innocent citizens.
We do not need to create demons out of our leaders because, in too many instances, they have behaved like ready-made specimens of public demons. So, we hang our sins on them, sometimes appropriately, sometimes lazily. Unfortunately, their behaviour has made it easy for the critics to descend on them. They shout loudly, lie casually, perform empathy only when cameras are present, and govern as though the people are background noise in their private banquet.
But there is a deeper tragedy. The lion is not our only problem. The sheep, too, must be examined. The other animals must be questioned. Even the silence of the forest must stand trial.
This is where the Olodo Syndrome enters.
In Nigerian street language, “Olodo” is often used to describe a dull person, someone slow to understand, someone who fails where basic reasoning should have saved them. But in this essay, Olodo is not merely the person who did not go to school. No. Nigeria has produced a more sophisticated creature: the educated olodo. The certificated illiterate. The graduate who cannot reason beyond slogans. The public officer who mistakes grammar for intelligence. The citizen who forwards nonsense with confidence. The analyst who mistakes noise for insight. The leader who confuses movement with progress. The voter who sells tomorrow for rice today, then spends four years complaining that the pot is empty.
Olodo, therefore, is not the absence of schooling. It is the failure of judgment.
It is what happens when a nation rewards mediocrity and punishes thought. It is what happens when people who ask serious questions are labelled troublesome, while those who clap for madness are called loyal. It is what happens when dumb, crazy things move the needle, while wisdom is treated like an old man coughing in the corner. It is what happens when unintelligent people do not merely exist, but are celebrated, promoted, defended, and installed as gatekeepers over those who still dare to think.
This is Nigeria’s Olodo Uprising.
It is an uprising not of the poor against the rich, nor of the uneducated against the educated. It is an uprising of shallow thinking against depth. An assault on memory, logic, accountability, and consequence. It is the national habit of refusing to connect action to outcome. We open the cage, release the lion, and then begin a prayer meeting when the lion remembers its appetite.
We talk, write, and discuss the Nigerian myth with a sense of fatalism. “This is Nigeria,” we say, as if that phrase is both an explanation and an excuse. If everyone thought as much about justice and fairness, life would be better. I am a critic, yes, but I am also a critic’s critic. I remain an unrepentant believer that one of the ways to keep the government on its toes is to keep harping on its flaws so that it can improve. But criticism without self-examination becomes entertainment. It becomes pepper soup politics, the kind we enjoy at drinking joints, suya spots, WhatsApp groups, and television studios where every table has a parliament and every loud voice is mistaken for a constitution.
Often, I say I believe the things I write are important for our nation, as they are for other nations. But when it appears to me that Nigerians, especially those in authority, do not react to these issues as people in other lands do, I repeat them in new essays to remind old readers and recruit new ones to participate in the continuing dialogue.
Because repetition, sometimes, is not a lack of creativity. It is the burden of memory in a country addicted to forgetting.
Sadly, this is Nigeria, where nothing works, and no one cares. When it works, it is often because someone’s interest is about to be served or is already being served, not because the people’s interest has suddenly become sacred. We talk about our institutions despairingly. Our leaders do not watch network news except when their faces will appear at their sons’ or daughters’ weddings, birthdays, burials, thanksgiving services, or self-sponsored ceremonies of public praise. They do not need newspapers anymore because too many pages are already full of their lies, paid adverts, and noisy banters dressed as governance.
A country that destroys thinking will eventually be governed by instinct.
That is why the Olodo Syndrome is dangerous. It not only makes people ignorant. It makes them confidently ignorant. It gives stupidity a microphone and asks wisdom to apply for permission to speak. It converts public debate into shouting contests. It turns leadership recruitment into ethnic arithmetic, religious panic, stomach infrastructure, and emotional blackmail. It makes citizens defend their oppressors because the oppressor speaks their language, attends their church, worships in their mosque, comes from their zone, or once gave them transport money.
This is how the other animals sided with the lion.
Not because the lion was right. They knew he was wrong. But fear is a powerful editor of truth. Hunger is a wicked lawyer. Proximity to power is a dangerous intoxicant. In Nigeria, many people do not support injustice because they are confused. They support it because they are calculating. They are asking themselves, “What if the lion remembers me tomorrow? What if I need a favour? What if I condemn him now and he becomes minister, governor, chairman, commissioner, vice chancellor, senator, president?”
So, they betray the sheep.
Government bashing remains a national pastime, and every drinking joint and suya spot has a sitting parliament with an expert on every issue. But we forget that no matter the input, if the politicians and actors on our national scene have questionable lives both at personal and domestic levels, nothing will change. The best government policy cannot change the individual when the policies themselves are formulated on a bad foundation by people with warped thinking.
A corrupt mind cannot midwife a clean system.
When a witch proclaims her presence, and an invalid does not make away, he must have money for sacrifices at home. Nigeria has been warned too many times. We have seen the witch. We have heard the announcement. Yet we remain seated, arguing about who invited her, who offended her, which village she came from, and whether her witchcraft is constitutionally recognised.
This is not merely a leadership failure. It is civic laziness. It is moral cowardice. It is intellectual surrender.
The tortoise in the story represents the rare citizen who does not join the chorus. The one who pauses the noise. The one who asks for sequence, evidence, context, motive, and consequence. The tortoise is not the loudest animal. It is not the strongest. It does not roar. It does not bleat. It thinks.
That is what Nigeria needs now: more tortoises.
Not slow people, but thoughtful people. Not cowards hiding under shells, but citizens who understand that speed without thought is national self-harm. We need people who can ask leaders: Where were you before power? What did you promise? What have you done? Who benefits? Who pays? What happens tomorrow? We need teachers who teach children to question, not merely to cram. We need voters who examine character before currency. We need religious leaders who produce conscience, not crowds. We need journalists who investigate, not decorate. We need institutions that reward competence over loyalty, substance over noise, and courage over convenience.
Because the lion will always be hungry again.
That is the part Nigeria refuses to learn. Appeasing bad leadership does not end its appetite. Excusing mediocrity does not transform it into excellence. Rewarding foolishness does not make it wise. If we allow the lion to eat the sheep today because we are afraid, hungry, tribal, religiously sentimental, or politically invested, we have not solved the hunger problem. We have only postponed our own turn.
In amazement, the other animals asked the tortoise, “why” and the tortoise replied. “If we allow him to eat the sheep today, he will still go hungry tomorrow, and we don’t know what will be eaten tomorrow—May Nigeria win.
Feature/OPED
Stocks vs Forex: Which is Better for Beginners in 2026?
By Onah Ishioma Adaeze
As a beginner, choosing between stocks and forex for your investment goals in 2026 can feel overwhelming. Before investing your hard-earned money, it is important to understand how both markets work.
While both markets present investors with opportunities to grow their wealth, they also differ in terms of volatility, liquidity, market hours, and leverage. Stocks involve owning portions of a company, while forex has to do with trading a base currency against a quote currency.
In this article, we will be going through the basics of stocks and forex, pointing out their differences, and helping you decide which asset better suits your investment journey in 2026.
What is Stock Trading?
When it comes to stock trading, you are buying shares of a company, which makes you a shareholder of that company. As a shareholder, you may be entitled to receive dividends whenever the company decides to pay dividends.
As for those companies that do not pay dividends, there are other benefits a shareholder may enjoy, like being called upon to attend shareholder meetings and having voting rights on certain company matters.
On a global scale, over $100 trillion worth of shares are traded annually. Also, the rising popularity of AI companies and technological innovations continues to drive investor participation and market growth.
If you’re an investor looking to buy and hold capital assets, then stock trading is definitely for you, as it allows for short-term, medium-term and long-term investment goals.
When you buy shares of a company and the company performs well, your shares increase in value. Another benefit of stock trading is access to index funds and ETFs.
These funds consist of companies that are grouped under an index. They are carefully selected and monitored under the fund, sparing the investor the stress of actively tracking the fund.
They can be a way of building a long-term, diversified portfolio, and some of these funds may pay dividends.
What is Forex Trading?
Forex trading has to do with buying one currency and selling another. With a pair like USD/JPY, USD is the base currency being bought against JPY, which is the quote currency.
In order to execute a trade in the forex market, you have to analyse and make predictions based on price movement, as well as pay attention to what’s going on in the global news scene.
The forex market runs twenty-four hours every weekday, with over $9 trillion traded in the market every day. Being the largest financial market in the world, there is very high liquidity.
Forex trading involves buying one currency against another, making predictions based on price movements on the forex charts. Price moves based on the activities of large institutions like hedge funds, big banks, the government, etc.
The forex market runs 24 hours a day, every weekday, with global forex turnover reaching $9 trillion per day in the BIS 2025 survey. Being the largest financial market in the world, there is very high volatility and price fluctuations.
At the same time, there is high liquidity in the market, which means that currency pairs can easily be bought and sold without hassle. Highly liquid instruments that are traded regularly include: EUR/USD, USD/JPY, GBP/USD, and gold (XAU/USD).
As a retail trader, knowing when to enter and exit the market is important. As easy as it is to make profits from price fluctuations, it is also very easy to lose money if the market moves against you. This is why it is important to set stop losses and take profits. This helps manage your trading capital.
Major Differences Between Stocks and Forex
While investing in stocks and forex can yield great capital gains, there are lots of ways in which they differ.
As a beginner, stock trading provides opportunities for long-term investments, ensuring slow but consistent returns for wealth building. But if you are looking for an active, short-term style of investment, then forex trading is for you, as it allows you to enter and exit the market within a shorter time frame.
Which is Better in 2026?
Choosing an asset to invest in all boils down to personal preference. At the same time, if you are not averse to risk, nor opposed to asset diversification, then it’s okay to invest in both.
For beginner investors in 2026, stock trading is easier to understand and get into, especially because of mutual funds, index funds and ETFs. With those funds, you don’t have to be an expert to start investing. You can just buy a fund that suits your needs and hold it over a long period of time.
If you are an investor who enjoys technical analysis, highly volatile and liquid markets, as well as trading under short time frames, then forex trading is the right pick for you.
Conclusion
You do not need to put all your eggs in one basket. There are investors who invest in both stocks and forex simultaneously. When starting out, you can start investing in stocks while learning forex. Take calculated risks and do not invest above your means. Diversify your investments and remember, when starting out, you should prioritise acquiring knowledge over profits.
Onah Ishioma Adaeze is a finance writer who is passionate about simplifying complex concepts into easily digestible pieces. Her hobbies are reading and watching anime
Feature/OPED
Building 234 Solutions: A Response to Everyday Workforce Challenges
By Owoloye Emmanuel
Every business starts with a problem. For us, that problem was hiding in plain sight.
Across organisations, we kept seeing HR professionals, payroll teams, and business leaders spend significant time navigating processes that should be simpler. Employee records sat across multiple systems, payroll processes required manual intervention, and routine workforce tasks often became more complicated than they needed to be.
As businesses grow, workforce operations naturally become more complex. Yet many organisations still rely on disconnected tools and workflows that create unnecessary friction for both employers and employees.
The consequence is more than operational inefficiency. HR teams spend valuable time managing systems instead of supporting people. Business leaders struggle to access timely workforce insights, while employees experience delays in processes that should be seamless.
These weren’t isolated challenges. They were recurring realities across workplaces, regardless of industry or size.
That observation led us to a simple question: what if workforce management could be easier?
What if HR, payroll, and workforce operations could work together within a single, connected experience?
That question became the foundation for 234 Solutions.
We are building 234 Solutions with a clear belief that workplace technology should reduce complexity, not add to it. Our goal is to help organisations spend less time navigating processes and more time focusing on productivity, growth, and people.
As we prepare for launch, our focus remains simple: building practical solutions for real workplace challenges and helping organisations create better experiences for the people who power them every day.
Owoloye Emmanuel is the founder of 234 Solutions
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