The Road To Uninterrupted Power Supply In Nigeria (1)

Nigeria’s persistent electricity crisis re­mains one of the most significant barri­ers to national development, with ripple effects across all sectors of the economy.

Despite numerous reforms, poli­cies and investments over decades, the dream of reliable power supply con­tinues to elude Africa’s most populous nation.

The Electricity Act 2023 represents the latest attempt to revolutionize the sector, but critical examination reveals both promise and pitfalls in the journey toward constant electricity.

The stark reality is that Nigeria cur­rently generates between 4,000 and 5,000 megawatts for over 200 million people— grossly inadequate compared to South Africa’s 40,000 megawatts for a popula­tion less than a third of Nigeria’s. This disparity illustrates the magnitude of the challenge, but not its impossibility.

The new legislation’s decentraliza­tion approach offers a paradigm shift by empowering states, companies and individuals to generate and distribute electricity. This could potentially break the stranglehold of inefficiency that has characterized the national grid system. States like Lagos, Rivers, and Edo have already begun exploring independent power projects, signaling growing con­fidence in this model.

The unbundling of the Transmission Company of Nigeria (TCN) into two enti­ties—the Nigerian Independent System Operator (NISO) and the Transmission Service Provider (TSP)—is a major step toward improving electricity reliabili­ty in Nigeria. Previously, TCN handled both transmission infrastructure and system operations, but this dual role led to inefficiencies and frequent grid collapses. By separating these functions, NISO now focuses on grid management and electricity market operations, while TSP oversees physical infrastructure such as transmission towers and sub­stations. This restructuring is expected to enhance grid stability, efficiency and transparency, making regular electricity supply more achievable.
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Siemens’ role in Nigeria’s electricity sector comes through the Presidential Power Initiative (PPI), a partnership aimed at modernizing the grid and in­creasing transmission capacity. Siemens has been involved in upgrading substa­tions, installing new transformers and improving distribution networks to re­duce losses and enhance power delivery. Their intervention is crucial in ensur­ing that the grid can handle increased electricity generation and distribution efficiently.

However, the ₦4 trillion debt owed to generation companies (GenCos) re­mains a significant challenge. This debt affects their ability to invest in mainte­nance, fuel procurement and capacity expansion, leading to reduced power generation. Without resolving this fi­nancial burden, achieving uninterrupt­ed electricity supply will be difficult, as GenCos need stable funding to sustain operations. Encouragingly, the Federal Government of Nigeria has pledged to urgently address this debt, with plans to pay a substantial portion immediately while settling the balance through finan­cial instruments like promissory notes within six months. Reports indicate that at least ₦2 trillion is expected to be paid before the end of the year, which should provide immediate relief to the strug­gling power generators.

The Act alone cannot guarantee suc­cess. Nigeria’s power sector challenges extend beyond legislative frameworks to include technical inefficiencies, vandal­ism, inadequate gas supply and corrup­tion. The transmission infrastructure remains fragile, with frequent system collapses highlighting its vulnerability. Additionally, the financial viability of the electricity market continues to suffer from liquidity crises, with distribution companies struggling with debt while consumers resist cost-reflective tariffs.

The Nigerian power sector is grap­pling with a crippling crisis as rampant electricity theft and infrastructure vandalism continue to threaten power supply. Although Nigeria is not able to generate enough electricity to power the country, these thefts and vandalism sig­nificantly worsen the situation. Due to these concerns, millions of homes and businesses have struggled without reli­able access to electricity for decades. In recent years, the Transmission Compa­ny of Nigeria reported several incidents of vandalism, resulting in significant disruptions to power supply across the nation.

The economic impact is staggering. In June 2020, Electricity Distribution Companies lost over N30 billion of their monthly revenues to energy theft, meter bypass, vandalism and unpaid electric­ity bills by consumers. By September 2021, TCN had lost N1.7 billion in nine months to vandalism of electricity infra­structure in Maiduguri and its environs alone. More recently, in January 2025, the minister of power revealed that over N9 billion was spent to restore vandal­ised power infrastructure in the north­ern part of Nigeria in 2024.

To be continued

*Adesokan, a public affairs commentator, writes from Lagos

Independent NG

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