Uncertainty looms over Nigeria’s power sector as stakeholders eagerly await policy directions from Minister of Power, Adebayo Adelabu, two months after his inauguration.
In September, Adelabu announced the government’s intention to add 20,000 megawatts of electricity to the country’s existing capacity of 4,500 megawatts, which has been stagnant for over a decade.
However, stakeholders reacted differently to this target, with some believing it to be achievable and others perceiving it as a mere political statement.
Despite his assurances to Nigerians that the government, under President Bola Ahmed Tinubu, will provide adequate and reliable electricity, Adelabu is yet to present a blueprint for achieving the additional 20,000 megawatt capacity.
The ongoing Nigerian Electricity Supply Industry (NESI) Market Participants & Stakeholders Roundtable (NMPSR) provides a platform for Adelabu to reiterate these assurances. However, energy experts argue that concrete policy documents, rather than elusive political statements, are needed to address the persistent problems facing Nigeria’s power generation, transmission, and distribution value chain.
The distribution companies struggle with liquidity issues, low remittance rates, and a significant metering gap. The generation companies face challenges related to inadequate investment and transmission infrastructure, resulting in frequent grid collapses.
For years, Nigeria has been grappling with a daily electricity supply of 4,500-5,000 megawatts for a population of over 200 million people. This persistent issue has become a major obstacle to Nigeria’s economic progress.
Amidst these difficulties, experts stress the importance of unveiling a clear and concise policy blueprint for the power sector. Such a document would serve as a guiding compass in efficiently implementing the government’s plans.
Kunle Olubiyo, in an interview with Media Talk Africa, expressed the belief that the power sector in Nigeria has failed in all aspects, emphasizing the urgent need for a comprehensive review. Olubiyo suggests that with the expiration of the Performance Agreement and Licensee Moratorium on November 1, 2023, the government has an opportunity to revitalize the sector.
“The government should convene a meeting with all critical stakeholders,” he stated. “The power sector has failed in all aspects; hence, the review will bring together all parties involved.”
Similarly, energy expert Joseph Eleojo believes that Minister Adelabu’s target of adding a mere 20,000 megawatts demonstrates his lack of understanding of the challenges faced by Nigeria’s power sector.
“Does the Minister think that 20,000 megawatts is sufficient for a population of 200 million? Why wait until 2026 to generate such a small amount?” Eleojo questions. Instead, he suggests harnessing Nigeria’s abundant solar and hydro resources to generate electricity, particularly at the local government level, in line with the new Electricity Act.
Another anonymous former Managing Director in Nigeria’s power sector highlights the need for well-defined strategies to implement policy effectively. Without clear strategies and a roadmap, any target set is merely a political statement.
“Before making policy statements, the Minister should provide details on how the 20,000 megawatt target will be achieved by 2026. What are the specific strategies for driving this target? Is the capacity coming from gas, hydro, or solar power?” the anonymous expert queries.
Given that Nigeria has struggled with a generation capacity of 4,500 megawatts for decades, it is necessary to have a comprehensive blueprint and strategy in place to achieve the desired target.
In conclusion, the Nigerian power sector faces numerous challenges that require strategic policy direction. The Minister of Power must go beyond political statements and present a concrete plan for delivering reliable and adequate electricity to the Nigerian people.
