CEO of Hampshire Capital, Odion Omonfoman, has called for deeper structural reforms in Nigeria’s power sector, arguing that persistent losses, regulatory interventions, and centralisation efforts are undermining progress.
Speaking during an interview With ARISE NEWS on Friday, Omonfoman highlighted significant inefficiencies in electricity distribution, noting that technical and commercial losses remain a major challenge across the market.
“For every 100 kilowatts of power generated, we’re only able to bill about 84% across the discos,” he said.
He explained that even within that billed portion, collection levels remain weak, worsening shortfalls in the sector.
“Collection and commercial losses are still very, very significant,” he noted.
On the structure of electricity distribution companies, he argued that their current size makes effective oversight difficult and distorts performance comparisons across regions.
“Discos need to be broken and reduced to subcos along state lines,” he stated
He also clarified the role of metering in the electricity value chain, stressing that it should not be confused with revenue collection.
“Metering is simply a device just to measure energy consumption and not necessarily a collection tool,” he explained.
Omonfoman also raised concerns about proposed amendments to the Electricity Act, warning that they risk reversing recent decentralisation gains.
“This amendment seeks to bring us back to a centralized electricity market,” he said.
He further cautioned against attempts to use ordinary legislation to override constitutional provisions embedded in the 2023 electricity reforms.
“You do not use a simple law to amend a constitution,” he maintained.
Looking at Nigeria’s long-term power outlook, he dismissed expectations of uniform nationwide 24-hour electricity supply.
“Nigeria will not get 24/7 power,” he said.
Instead, he argued that progress will come through decentralised development led by states addressing their own electricity challenges.
“The only way to make that happen is to allow states to solve local power problems,” he said.
On repeated policy interventions in the sector, Omonfoman warned that overcorrection has worsened structural inefficiencies.
“Let us allow the power sector to fail, if it has to fail,” he said.
Despite the challenges, he expressed optimism that ongoing reforms at the state level and increasing investor participation could gradually impro
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