A Senior Advocate of Nigeria and Professor of Law, Yemi Oke, has called for a comprehensive restructuring of Nigeria’s power sector, insisting that only a fresh round of investment and ownership reconfiguration can resolve its deep-rooted challenges. He argued that the current system remains unsustainable despite government interventions.
Speaking in an interview with ARISE News on Tuesday, Oke acknowledged that the sector has been plagued by persistent liquidity issues, which have weakened operations across the value chain.
Oke’s position comes amid the federal government’s move to settle ₦3.3 trillion in legacy debts owed to power generation companies. While he described the settlement as a positive step, he maintained that financial injections alone would not solve the sector’s long-standing inefficiencies.
“The sector has been bedeviled by liquidity crisis,” he said, noting that unresolved debts have significantly hindered performance and growth.
He, however, expressed support for the government’s verified debt figure, describing the ₦3.3 trillion settlement as realistic and sufficient within current industry conditions.
“$3.3$ trillion Naira being offered as full and final payment… seems to me sufficient in terms of industry reality,” he stated.
Despite this, Oke stressed that deeper structural reforms remain critical, particularly in attracting new capital and expertise into the sector.
“We can’t escape the reality… going via another round of re-acquisitionary financing in the power sector,” he said.
According to him, the solution lies in reopening the sector to new investors through partial or full ownership changes, allowing fresh funds and ideas to drive transformation.
“Another round of funds must come in… New entities will need to come,” he explained, highlighting the need for mergers, acquisitions, and concessions.
He likened the required reforms to the banking sector consolidation led by former Central Bank Governor Charles Soludo, which strengthened Nigerian banks and made them globally competitive.
Oke further emphasised that both generation and transmission segments require urgent restructuring, warning that many operators are either struggling or technically insolvent.
He argued that without a deliberate effort to overhaul ownership structures and attract credible investors, the sector would continue to underperform.
“Until we rejig and redo what has been done, we might not likely going to get to where we’re going,” he said.
Oke concluded that while debt settlement is a step in the right direction, only bold reforms involving fresh investments, restructuring, and strategic repositioning can deliver a stable and efficient power sector in Nigeria.
Triumph Ojo
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