Energy expert and Chief Executive Officer of Montserrado, Ifeanyi Ajuluchukwu, has raised concerns over Nigeria’s persistent infrastructure deficit, energy pricing structure, and limited financing options for long-term power projects.
He made the remarks in the latest edition of The Coffee Table (TCT) with Ugodre, where he examined structural weaknesses in Nigeria’s energy and financial systems, warning that current funding models are inadequate for sustainable infrastructure development.
Ajuluchukwu explained that commercial banks in Nigeria are largely designed for short-term lending cycles, making them ill-suited for financing capital-intensive infrastructure projects, especially in the power sector, which typically requires long repayment horizons.
“Infrastructure anywhere in the world is a long-term play. An average Power Purchase Agreement (PPA) is 15 to 20 years. If I go to a bank to raise money for 15 years, they don’t even have the money,” he said.
He noted that this mismatch between project timelines and available financing remains one of the biggest barriers to Nigeria’s energy development, stressing the need for “patient capital” and alternative funding structures.
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The energy expert also addressed the economics of renewable energy in Nigeria, stating that solar power remains relatively expensive compared to fossil fuels, despite global trends pushing for cleaner energy adoption.
According to him, without pricing reforms and targeted investments, solar energy risks remaining unaffordable for industrial-scale use, thereby slowing down Nigeria’s energy transition.
Ajuluchukwu further questioned whether a single mega-refinery could sufficiently meet Nigeria’s growing energy demands, suggesting that the country may still require a network of modular refineries to close its supply gap.
He argued that decentralised refining capacity would strengthen energy security and reduce over-reliance on large-scale infrastructure projects.
The discussion underscored broader concerns about Nigeria’s infrastructure financing model, with Ajuluchukwu advocating for innovative funding mechanisms, stronger policy coordination, and diversified energy investments.
He emphasised that solving Nigeria’s energy crisis will require a combination of financial reform, private sector participation, and long-term strategic planning rather than short-term fixes.
The session highlighted growing calls among experts for structural reforms to unlock sustainable energy growth and bridge Nigeria’s widening infrastructure gap.