Gas to Remain Backbone of Nigeria’s Power System Despite Renewable Growth, Says Ozoude

The Managing Director/CEO of Transafam Power Limited, Engr. Vincent Ozoude, has affirmed that gas-fired generation will remain the backbone of Nigeria’s electricity system for years to come, even as renewables and smart energy technologies continue to grow, positioning indigenous operators at the centre of the country’s drive for reliable power.

Ozoude made the case during a high-level panel session themed “ReEngineering Africa’s Power Market — Driving Reliable Energy Systems” at the NOG Energy Week, one of Africa’s foremost energy gatherings, held in Abuja.

Speaking as one of Nigeria’s leading power generation executives, Ozoude set out a pragmatic, evidence-based vision for the energy sector, anchored on strengthening the gas value chain, deepening market reforms and embracing digitalisation. “Nigeria’s energy future will be shaped by continued reforms, strategic investment and the intelligent integration of gas, renewables and smart technologies,” he said.

“Solar energy is an important part of the energy future in Africa and Nigeria, but gas-fired generation will continue to stabilise Nigeria’s grid. Renewables alone cannot carry the base load today. Gas remains critical to ensuring reliable stable electricity.”

He stressed that the country’s abundant gas reserves represent its single greatest opportunity to close the gap between the installed available capacity and the power that reaches homes and businesses. “Nigeria is rich in gas. The priority is to invest across the gas value chain so we can unlock more reliable power generation,” he said, adding that “when we invest in upgrading existing gas fired power plants as well as gas processing plants, we increase available capacity and deliver more electricity to Nigerians.” Ozoude also acknowledged the role of technology in the next phase of the sector’s growth. “Digitalisation and smarter grid systems are essential for the next phase of Nigeria’s power sector development,” he noted. “Smart technologies improve efficiency and enable better integration of different energy sources with guaranteed dispatch. Gas-fired power plants will remain the backbone of Nigeria’s electricity system for years to come, even as renewable energy continues to grow.”

Also on the panel were Abba Abubakar Aliyu, Managing Director/CEO of the Rural Electrification Agency (REA); Seun Sulaiman, Managing Director, Siemens Energy West Africa; and moderator Oghosa Arhahon, Policy & Markets Manager at the Long Duration Energy Storage Council. Ozoude’s contributions drew on Transafam Power’s own turnaround of Afam Genco. Since Transcorp Group acquired the Afam GenCo assets, the business has grown its generation capacity, meeting at acquisition five years ago nearly by 625% from 48 megawatts of power to 348 megawatts of power generation, a recovery that independent analysts have cited as a central driver of the Transcorp Group’s improved outlook. Together with its sister company, Transcorp Power Plc, Transafam accounts for about 20% of Nigeria’s thermal power generation capacity.