Nigeria’s power sector about years ago and currently. The large, medium, and small-scale businesses in the nation have been severely harmed by the power utility’s poor services. With a focus on the implementation of pre-paid metering systems and power consumption by families and businesses in the country, the power crisis not only impacts individual businesses but also deters potential investors, both local and foreign. The instability of the national grid leads to reduced investor confidence, which can hinder economic growth and development. As businesses struggle with increased costs due to power failures, these expenses are often passed on to consumers, contributing to rising inflation.
The electricity supply in Nigeria has yet to meet the demand, as the country is flooded with poor electricity supply and blackouts. The urgency of this situation cannot be overstated. The inability of the power sector to meet the growing electricity demand has made it difficult for the citizens to realize their pledges for tangible development and improvement of the standard of living, stifling economic growth and hindering access to essential services such as healthcare, education, and clean water.
This incapacity could be better addressed through comprehensive infrastructure upgrades, enhanced maintenance schedules, diversification of energy sources, and robust policy reforms to attract private sector investment and ensure sustainable development. With about 180 million people, Nigeria is the most populous country in Africa. Unfortunately, most of the population works in the informal economy (agriculture), and most economic activities occur in cities and urban centers.
In the modern country, electricity is the lifeblood of social engagement, public safety, economic and technological competitiveness, and productivity, while Nigeria’s infrastructure struggles with incessant power outages. It is usually explained away as a collapse of the National Grid.
A 2023 report by The Economist says Nigeria leads Africa as the highest generator importer. It is feared Nigeria has more people without electricity than any other country in the world. Currently, Nigeria’s total electricity supply is put at some 20GW.
Unfortunately, Nigeria’s electricity supply history has been bedevilled by a near-total collapse. First, it was the Nigerian Electricity Supply Company Limited (NESCO); then, the Electricity Corporation of Nigeria (ECN); and later, the National Electric Power Authority (NEPA). And now, the Power Holding Company of Nigeria (PHCN). The name may change, but the fact remains that each organisation’s attempts at delivering uninterrupted power supply to Nigerians have been sinuous and unfulfilling.
Light in darkness is the best elixir for underdevelopment and chronic backwardness in this postmodernist age. The causes of electricity collapses in Nigeria are multifaceted, including infrastructure deficiencies, maintenance issues, fuel supply problems, technical challenges, and vandalism. The ageing national grid infrastructure is a significant factor, with many outdated components unable to handle current demand, leading to frequent breakdowns. Inadequate maintenance of power plants and transmission lines results in technical faults, causing grid collapses. Irregular gas supply to power plants disrupts generation, contributing to instability. Frequency imbalances and load rejection can lead to sudden outages, while vandalism and theft exacerbate the problem. The impacts are profound, including economic losses, disruption of business operations, and significant financial setbacks for industries. Residents’ quality of life is severely affected, with power outages causing discomfort and inconveniences, particularly in urban areas. Healthcare facilities and educational institutions also face disruptions, affecting service delivery and learning. Businesses and households rely on alternative power sources like generators, increasing operational costs.
For Nigeria, a country of over 200 million people, the electricity crisis is not just an economic bottleneck but a critical threat to its national security and stability, as reliable power is essential for economic growth, industrial development, and the provision of social services like healthcare and education. Despite the transition to a privately owned electricity sector, Nigeria faces challenges including insufficient generation, infrastructure vandalism, poor maintenance, and an estimated annual economic loss of 5-7% of GDP due to lack of reliable power. Addressing these issues requires significant investment, regulatory reform to attract private capital, improved infrastructure, and a greater focus on renewable energy sources to build a sustainable and competitive energy market.
Nigeria’s chronic electricity failures stem from decades of inadequate infrastructure, poor regulation, privatization issues, corruption, and weak enforcement, leading to widespread power outages, energy poverty, economic waste, and national security risks. To address the crisis, recommendations include enhancing regulatory authority, ensuring 100% customer metering, mandating private companies to fund infrastructure, and redirecting investment towards public-led projects to build generation capacity and revitalize the transmission network.
The system collapse phenomenon is common on the Nigerian national grid, and it frequently results in either a partial or complete systemic failure (blackout), severely impeding the country’s socioeconomic development and industrialization. Most areas of the network have low voltage profiles, particularly in the north, extremely high transmission losses, a radial and weak grid network, inadequate dispatch and control infrastructures, and regular system breakdowns.
Over a period of eighteen years, the grid alarmingly fell both partially and almost two and a half times per month on average. Reports show that anytime the grid collapses, the majority of electricity consumers are thrown into darkness, affecting business and social activities. The grid frequency appeared to improve from 2020 to this moment; the national grid had collapsed 162 times. It was observed that the current administration carried on with the grid collapse cases, with more than ten (10) of such incidents occurring even just recently.
Abdullahi Adamu wrote in from Abuja. he can be reached via nasabooyoyo@gmail.com
