By Erewunmi Peace

Professor Barth Nnaji, Chairman of Geometric Power, has called for urgent reforms in Nigeria’s energy pricing structure, emphasizing the need for realistic gas pricing and cost-reflective electricity tariffs to ensure sustainability in the power sector.

Speaking at the Oriental News Conference held in Lagos on July 24, Prof. Nnaji warned that the widening gap between regulated gas prices and market realities is placing a severe burden on generation companies (GenCos) and the overall electricity value chain.

“The regulated domestic gas price of $2.42 per MMBtu, now revised to $2.13 by the NMDPRA, does not reflect the actual market rates, which range from $2.70 to as high as $9.00 per MMBtu depending on supply conditions,” he stated.

According to Nnaji, this misalignment has contributed to significant subsidy costs—over ₦1.1 trillion in just the first half of 2025—and mounting debts owed to power generators, thereby discouraging investment in critical energy infrastructure.

He further noted that current tariffs fail to capture dollar-denominated operation and maintenance costs, adding pressure to a sector already struggling with inconsistent gas supply, aging infrastructure, and liquidity shortfalls.

The former Minister of Power also urged a collaborative approach involving government regulators and private investors to develop a more robust, investor-friendly electricity framework.

“For us to achieve reliable electricity and attract needed investment, pricing must reflect the true cost of production while ensuring accountability in the use of subsidies,” Prof. Nnaji emphasized.

Geometric Power, a pioneer in private power generation, operates Nigeria’s first integrated power project in Aba, Abia State. The company continues to advocate for reform-oriented policies that balance affordability for consumers with sustainability for energy providers.