Opinion
By Tony Onyima
THE phrase “power grid collapse” has become almost synonymous with Nigeria’s power sector in recent years. Despite being Africa’s largest economy, Nigeria’s electricity supply system remains in continuous disrepair, causing hardship for individuals and businesses. This article examines the unending cycle of national grid collapses, analysing the interplay between infrastructure neglect, systemic corruption, political influence, and public-private sector challenges. Moreover, it highlights the role that “national greed” – often disguised as self-serving agendas – plays in exacerbating this problem, ultimately hindering the development and modernisation of the power sector.
Nigeria, with a population exceeding 220 million, is one of the most underpowered nations in the world. According to the World Bank, approximately 85 million Nigerians (43% of the population) lack access to grid electricity, making Nigeria the largest energy-access-deficit country globally. This access problem has persisted despite government investments, privatisation efforts, and partnerships with private entities. As of 2023, the country’s electricity demand is estimated at 28,000 to 30,000 MW, yet actual generation fluctuates between 3,500 MW and 5,000 MW – a stark and glaring shortfall.
The National Control Centre (NCC) in Osogbo manages the grid. However, the power supply situation is so fragile that grid collapses occur multiple times yearly, with consequences ranging from blackouts in major cities to severe productivity losses across sectors. Between 2010 and 2022, Nigeria recorded nearly 150 grid collapses, with some years witnessing as many as ten incidents. What are the causes of the frequent collapses of the power grid?
Infrastructure Decay
Nigeria’s power grid infrastructure is outdated, with components like transformers, substations, and transmission lines deteriorating due to a lack of proper maintenance. Much of the transmission infrastructure dates back to the 1960s and 1970s. Ageing equipment is prone to malfunctions; even minor faults can cascade into full-blown collapses.
Underinvestment and Funding Gaps
Although the government and private investors have made periodic investments, they are often insufficient for the level of modernisation required. For example, the Transmission Company of Nigeria (TCN) estimates that $1.5 billion is needed annually for the next five years to stabilise the grid. Yet, funding is rarely provided at this scale. In 2020, only $586 million was allocated for power transmission.
Inadequate Power Generation
Despite having abundant gas reserves, Nigeria’s electricity generation capacity remains significantly low. Thermal plants, about 80% of Nigeria’s power generation, often experience fuel shortages due to supply issues and inconsistent pricing. The result is an unstable generation output that overburdens the transmission infrastructure, leading to frequent collapses.
Systemic Corruption and “National Greed” Nigeria’s power sector is notorious for systemic corruption. Funds allocated for infrastructural upgrades are frequently siphoned leaving essential projects abandoned or uncompleted. Government agencies, regulatory bodies, and even private sector players are complicit in this “national greed,” diverting resources that should be used to improve power infrastructure. Transparency International says Nigeria loses around $1 billion annually to corruption within the energy sector alone.
Political Interference and Policy Instability
Frequent policy changes and political interference have hindered efforts to stabilise the power sector. Successive administrations often discontinue or alter previous policies, which leads to a lack of continuity in planning. The inconsistency discourages foreign investment and complicates long-term strategies essential for grid modernisation.
Impacts of the Power Grid Collapse
The financial losses associated with power grid failures are monumental. The Manufacturers Association of Nigeria (MAN) reports that Nigerian industries spend approximately $14 billion annually on diesel generators due to unreliable grid power. This cost is ultimately passed down to consumers, inflating the price of goods and services and stifling competitiveness.
Beyond economic costs, unreliable electricity supply has a ripple effect on the quality of life. Hospitals face service disruptions, and countless families endure long hours in darkness. Additionally, the increased reliance on diesel and petrol generators results in severe environmental pollution, contributing to respiratory diseases and worsening Nigeria’s greenhouse gas emissions.
Nigeria’s unstable power situation has deterred foreign investors who prioritise reliable energy access. A 2021 International Finance Corporation (IFC) survey found that energy infrastructure is one of the top three factors influencing foreign investment in emerging markets. The constant power failures, therefore, render Nigeria a less attractive investment destination.
Recent Initiatives and Challenges in Reforms
The Nigerian government has taken steps to reform the power sector over the years. In 2013, it unbundled the Power Holding Company of Nigeria (PHCN) into generation companies (GenCos), distribution companies (DisCos), and the Transmission Company of Nigeria (TCN). However, this privatisation process has been criticised for a lack of transparency, with licenses allegedly granted to investors with little or no experience in power management.
In 2020, the government launched the Presidential Power Initiative (PPI) in collaboration with Siemens AG to increase power output to 25,000 MW by 2025. This ambitious project includes upgrading distribution infrastructure, expanding generation, and optimising transmission. Yet, many Nigerians remain sceptical, as similar promises have been made with limited results.
One crucial barrier to these efforts is the disconnect between the central grid system and Nigeria’s rural communities. The grid system primarily serves urban areas, leaving rural regions without access to electricity. This divide is exacerbated by the absence of local, decentralised generation options, which could alleviate pressure on the central grid.
Sustainable Solutions
Addressing the chronic power grid collapse will require bold actions and substantial political will. Below are a few recommendations for charting a more sustainable energy future:
Prioritize Decentralized Energy Solutions
Given the current state of the infrastructure, Nigeria’s heavy dependence on a central grid is unsustainable. Decentralised power solutions, such as microgrids and off-grid solar, are more resilient and could alleviate some of the demand pressures on the national grid. According to the Rural Electrification Agency (REA), Nigeria could power 25 million homes with decentralised solutions by 2030.
Increase Transparency and Accountability
True reform will remain elusive without tackling the “national greed” that undermines the sector. Implementing transparent systems, such as blockchain, for tracking fund allocations and project progress would help mitigate the pervasive corruption within the power sector.
Incentivize Renewable Energy Investment
Nigeria is well-positioned to exploit renewable energy sources like solar, wind, and hydro. The federal government should develop policies that incentivise companies to invest in renewables. For instance, tax rebates and customs exemptions on renewable energy equipment would attract investors and reduce dependence on fossil fuels.
Capacity Building and Technical Training
A lack of skilled personnel is a significant obstacle to upgrading Nigeria’s power infrastructure. Initiatives to train and retain local engineers, technicians, and managers within the sector would provide a robust workforce capable of maintaining and managing a complex power grid.
Conclusion: An Urgent Call to Action
The frequent collapse of Nigeria’s power grid is more than an infrastructural failure; it reflects the structural inefficiencies and corruption endemic to the country’s public and private institutions. Without confronting the “national greed” that drains resources, even the best-laid plans for revitalising the grid will falter. As Nigerians, we must demand accountability and transparency in managing our power sector. Only then can we build a resilient, sustainable power infrastructure capable of meeting the energy demands of a growing population and an ambitious economy.
***Dr. Tony Onyima is a former managing director and editor of The Sun and former Commissioner for Information, Culture and Tourism in Anambra State.
A.I
Oct. 16, 2024
Tags: Tony Onyima
