By Yemi Olakitan
With stunted growth and the well-publicized failures of the transmission, generation, and distribution sub-sectors, 2022 was far from a promising year for the power sector.
It was obvious to everyone that the power sector had not made appreciable progress, primarily because of a lack of investment and managerial skill.
It goes without saying that the power sector and industrialization are related because a sufficient electricity supply is essential for the expansion of businesses, especially Small and Medium Enterprises (SMEs).
To supply its 218 million people, Nigeria needs a massive 25,000–40,000 megawatts (MW) of power. However, the available installed generating capacity is only about 12,522MW, and the transmission and distribution network can only deliver 4,000MW on average to buildings such as homes and businesses.
Despite concerted efforts by the Nigeria Electricity Regulatory Commission (NERC) to increase power supply in the nation, the News Agency of Nigeria (NAN investigation)’s reveals that on-grid electricity supply has not yet reached 5,000MW.
Recall that in July 2022, the Nigerian Electricity Regulatory Commission (NERC) activated a partial power agreement with significant players in the Nigerian Electricity Supply Industry (NESI) to increase the power supply to 5,500MW.
Despite that initiative, distribution is even lower than that while generation has stayed below the 4,000MW cap.
The nation uses one of the least electricity per person in the world—136 KW/h. It is 4,270 KW/h in Libya, 616 KW/h in India, 2,944 KW/h in China, 4,803 KW/h in South Africa, and 8,307 KW/h in Singapore. Nigeria’s power sector endured unceasing national grid failures throughout 2022, a crisis involving the liquidation of electricity distribution companies, and the National Mass Metering Project’s failure (NMMP).
Nigeria’s power grid had collapsed about eight times by September 2022, according to the grid’s performance and various updates from DisCos, even though NERC has not yet compiled data on system collapse for 2022. For instance, a grid collapse occurred on September 25, 2022, when the system’s power generation dropped from over 3,700 MW to as low as 38 MW.
Nigeria’s power grid experienced its sixth collapse on July 20, 2022, and another grid collapse was reported on June 13.
The country’s electrical infrastructure failed twice in March (during which time TCN claimed to have recorded a peak of 5,615.40 MW) and twice more in April 2022.
The Senate enacted the Electricity Bill 2022 in July to address the numerous problems plaguing the electricity industry, but President Muhammadu Buhari has not yet given the measure his approval.
The measure, according to Sen. Gabriel Suswam, chairman of the Senate Committee on Power, aims to provide the optimal legal and institutional framework for the sector and address inequalities in Nigeria’s current transmission infrastructure.
Stakeholders have pointed the finger at the power distribution firms (DisCos) as being the most responsible for installing a regime of darkness in the nation among the power value chain.
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Due to their heavy debt loads, weak financial standing, and lack of investment, the majority of DisCos are in dire straits.
The Minister of Power, Mr. Abubakar Aliyu, who said that nine out of the 11 DisCos were in danger of going bankrupt, corroborated this.
In order to sell its 60% equity in the DisCos in Abuja, Kano, Kaduna, Benin, Ibadan, and Port Harcourt, Aliyu revealed that the Nigerian government had ordered banks to locate serious investors. Even the 2022 National Mass Metering initiative, through which the Federal Government promised to give Nigerians free metres, has not yet succeeded in achieving the desired result.
According to Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), the bank distributed N47.8 billion for roughly 865,956 metres nationwide. However, the project’s execution by DisCos and Meter Asset Providers (MAPs) did not produce the desired outcome.
Nigerians anticipate that the Federal Government would launch new plans to enhance the power supply in 2023 in order to shift the bad narratives surrounding the power sector.
According to Mr. Adamson Saliu, an energy specialist, localised electricity transmission is necessary to correct the industry’s monumental failure in 2022. “The power industry failed miserably in 2022. In Nigeria, we have never seen a national grid meltdown of this magnitude. The national grid appeared to be a switch that could be turned on and off. Electricity should be localised, and the Nigerian Transmission Company should be abolished. He declared, “We are wasting material and financial resources by operating the TCN.” Saliu questioned why it was so difficult to produce power than 5,000MW. There is an easy solution.
In order to increase production, “mini and small electricity generating enterprises should be encouraged and provided with the required financial aid.”
Imagine a scenario in which 2,000 tiny and small businesses are producing 200MW to 2,000MW using the sun, water, wind, and other resources around Nigeria.
“Let the administration review the privatisation of the DisCos once more with regard to distribution. Due to their dog-eat-dog relationship, consumers and DisCos will continue to be at war.
“How on earth can consumers afford to purchase poles, metres, and transformers for DisCos?
Overall, the government should proclaim the electricity sector to be in a state of emergency and hire respected foreign power generation and distribution businesses to fill this vital gap.
We are doomed as a nation without electricity, he said.
Saliu added that if immediate action is not taken to save the power sector, local manufacturers will continue to suffer and the economy would continue to tank.
“The story will radically change if competent organisations join the team.
Consider the telecommunications industry as a starting point, he advised.
He claimed that because NERC is ineffective and inefficient as a regulatory organisation, “The DisCos are doing what they like.
