Nigeria’s National Grid Collapse: Expert Calls for Infrastructure Investment and Decentralization
A recent national grid collapse in Nigeria, which occurred on January 23, 2026, has once again highlighted the country’s persistent power sector challenges. Professor Wumi Iledare, a renowned expert in petroleum economics, attributes the recurring grid collapses to structural problems rather than operational accidents. According to Iledare, the solution lies in serious infrastructure investment and decentralization of the electricity market.
The National Grid has experienced at least 16 collapses in the past two years, indicating a deep-seated issue. Iledare emphasizes that a decentralized market would support an optimal energy mix, reduce systemic risk, and ensure that only excess power flows through the national grid. He also stresses the need for power decentralization and electricity market restructuring to address the problem.
Regarding compensation for electricity consumers, particularly those on Band A, Iledare expresses doubts about the likelihood of meaningful compensation due to the current tariff regime’s flaws. The Band A pricing system lacks strong theoretical and regulatory foundations, and charging consumers based on quality and hours of supply without transparent measurement undermines fairness and credibility in the electricity market.
Iledare notes that regulatory mechanisms are too weak to enforce effective service-level accountability on electricity distribution companies (DisCos), making it unlikely for consumers to receive compensation. He suggests that a class action against DisCos may be the most realistic option for affected consumers to seek redress.
The professor emphasizes that Nigeria’s power crisis cannot be solved through tariff adjustments alone, calling for deeper structural reforms in the sector. He stresses the need to fix the structure, decentralize the market, invest in infrastructure, and restore regulatory discipline to address the country’s power problems.
The frequent grid collapses have significant implications for Nigeria’s economy and citizens, who continue to bear the brunt of the power sector’s inefficiencies. As the country seeks to address its energy challenges, experts like Iledare are calling for a comprehensive approach that prioritizes infrastructure investment, decentralization, and regulatory reforms to ensure a reliable and efficient power supply.
