Nigeria’s electricity sector is entering a phase of increased stability and investor confidence, driven by federal reforms and the gradual resolution of legacy debts that have long constrained growth, according to Kola Adesina, Group Managing Director of Sahara Power Group.
In an interview, Adesina highlighted that Sahara Power is on track with plans to boost dispatched generation capacity to between 6,500 and 7,000 megawatts. The company is also pioneering the development of a data centre designed to enhance operational efficiency, predictive maintenance, cybersecurity, and real-time analytics, supporting innovative operations in partnership with the federal government and system operators.
The GMD emphasized that the group intends to invest heavily in both gas and renewable energy sources over the next three to five years, with the overarching goal of delivering “sustainable, affordable, and reliable power for households and industries.”
Adesina attributed the improved investment climate to recent infrastructure and macroeconomic policies under President Bola Tinubu, which have introduced clarity, predictability, and a level of coordination that were previously absent. According to him, these reforms have helped address structural bottlenecks that historically undermined investor confidence.
On the financial front, Sahara Power has already settled $438 million—approximately 73 per cent of its original $600 million loan obligation—despite longstanding liquidity challenges in the sector. Adesina noted that the federal government’s ongoing legacy debt settlement programme is pivotal for easing financial pressures on power companies, gas suppliers, and lenders, while creating space for new capital inflows.
“Improved policy coordination, relative exchange rate stability, easing inflationary pressures, and moderated interest rates are now allowing power sector operators to plan with greater conviction,” Adesina said. He added that closer collaboration among government agencies, regulators, financiers, and industry players is laying the foundation for sustained growth and operational stability in Nigeria’s electricity market.
Adesina revealed that Sahara Power has undertaken extensive scenario planning and aligned its strategic objectives with the president’s bold, long-term infrastructure agenda. He described the administration’s approach as demonstrating uncommon resolve in confronting structural bottlenecks that have historically constrained investment in the energy value chain.
He further highlighted that decisive reforms and policy clarity have significantly improved investor confidence, opening the door to sustained growth in the power sector and broader economic development. “The removal of long-standing impediments has helped reposition Nigeria as a more credible destination for long-term capital,” he said.
Macroeconomic improvements, according to Adesina, are reshaping business expectations. Clearer sector reforms, increased foreign exchange stability, a slowdown in inflation, and moderated interest rates now allow investors to plan with a higher sense of predictability and conviction.
He emphasized that Sahara Power remains committed to strategic, tech-led expansion, anchored in the federal government’s long-term infrastructure plan. “We have done a series of scenario planning and will anchor our strategic objective on the bold, clear-sighted infrastructure plan of President Bola Tinubu. He has demonstrated courage in confronting age-long bottlenecks, clearing the way for investor confidence and enabling significant growth in the power sector and Nigeria’s economy,” he stated.
On sector-wide collaboration, Adesina pointed to unprecedented coordination among the Federal Government, the power ministry, regulatory agencies, power entities, the Central Bank, banks, multilateral financial institutions, and other stakeholders. He predicted that this cooperation would continue into 2026, driving growth, efficiency, and more power for Nigerians.
Adesina commended the federal government for addressing liquidity challenges through legacy debt settlements, saying it would drive new investments and stabilize the sector for unhindered growth. He also reported progress in metering and service delivery, noting that collaboration between regulators and operators is expected to optimize the value chain and improve supply reliability for end-users.
The GMD highlighted upcoming distribution network reforms, including massive infrastructure rehabilitation projects, deployment of Advanced Metering Infrastructure, and the implementation of robust Customer Relationship Management systems. These measures aim to reduce technical, commercial, and collection losses, enhance service delivery, and develop model business units that demonstrate the potential of modernized operations.
Sahara Power’s planned data centre will leverage technology to optimize sector performance, enhance transparency, and support predictive maintenance and cybersecurity initiatives. Adesina reiterated the company’s commitment to precise, transparent, and excellent service delivery, driven by ambitious investments and sector leadership.
Regarding debt management, Adesina noted that discussions with the consortium of banks involved in Sahara’s loans—contractually due for full repayment in 2034—are progressing positively. “Our successes at Sahara are built on a foundation of financial integrity. From inception to date, we have repaid the naira equivalent of $438 million, or 73 per cent of the original $600 million loan, despite huge liquidity issues in the sector,” he said.
He added that as of March 31, 2025, debts owed to Sahara and its gas suppliers had been reconciled to N1.514 trillion. “The government’s intervention through legacy debt payments will facilitate full settlement of all outstanding loans, obligations to gas suppliers, and technical service providers, enabling us to accelerate our growth plans,” Adesina said.
The GMD emphasized that the federal government’s legacy debt resolution programme is a major catalyst for stabilizing the value chain and restoring investor confidence. He noted that over 2.3 million new meters have been deployed under the National Mass Metering Programme since 2020, significantly reducing the national metering gap and improving revenue assurance for operators.
Sahara Power currently accounts for about 19 per cent of Nigeria’s total power generation. Its subsidiaries include Egbin Power Plc—the largest thermal power plant in sub-Saharan Africa—First Independent Power Limited in the Niger Delta, and Ikeja Electric, one of the largest privately run distribution companies in the region.
With strengthened sector collaboration, debt resolution, technological upgrades, and robust policy frameworks, Adesina expressed optimism that Nigeria is on course to become a transformative power hub in Africa.