The Minister of Power, Adebayo Adelabu, recently claimed that Nigeria has achieved a remarkable feat in power generation by 2,000 megawatts in the last two years, from 2,000MW in 1984 to 4,000MW in 2024. While this achievement is being celebrated, the persistent power sector crisis does not in any way support the minister’s claim. The excitement within government circles has also not reflected on business operations and households in the country. In the past ten years, the power sector has seen investments totaling at least $50 billion, including government subsidies and private sector contributions, with some reports citing N36trillion in subsidies alone in the beleaguered power sector.
Nigeria has a total installed power generation capacity of 16,384MW, but can only distribute not more than 4,000MW on most days, or even less. Available statistics show that power generation in the country reached its peak in 40 years at 6,003MW daily on March 2, 2025, but it has since crashed to less than 4,000MW. Adelabu made the claim recently when members of the Nigerian Society of Engineers (NSE) led by its President, Margaret Oguntola, paid him a courtesy visit in Abuja, to discuss areas of collaboration between NSE and the power ministry.
It is high time government stopped playing politics with the power sector, a critical component of economic and industrial growth, and focus squarely on addressing the multifaceted challenges facing the ailing sector. It is ironical that while the power sector continues to experience sluggish growth due to inefficiency and cash flow constraints, Nigerians and business operators are saddled with high tariffs, while Benin Republic and Togo get power steady supply from Nigeria on a 24-hour basis, according to reports from the Transmission Company of Nigeria (TCN).
According to the Nigeria Electricity Regulatory Commission (NERC), international bilateral electricity customers in Benin Republic and Togo owe Nigeria $8.84 million for energy consumed in the Q4 2024. The indebted foreign companies in Benin off-taking power from Nigeria include Para-BEE ($2.65million), Transcorp-SBEE Ughelli ($2.8million), ParaCEET($2.64million). Only Mainstream-NIGELEC in Togo has paid off its debt totaling $2.6million, according to invoice issued to NERC.
Although there are reports of little improvement in the power stability in parts of the country, in particular, in the distribution segment to Discos, which received 7,420.6 Gwh, reflecting a billing efficiency of 83.7 per cent. This represents a slight improvement of 82.2 per cent in Q3 2024, it is still below optimal levels. A recent United Nations Sustainable Development Goals(SDGs) 7 tracking report, identified Nigeria as the “world’s largest energy deficit”, with 90 million people lacking access to electricity, surpassing Democratic Republic of Congo(70 million), and Ethiopia, 58 million people.
The report also reveals that self-generated power supply from diesel and petrol is estimated at 15,000MW. This results in high energy costs, further deepening the current economic disparities. The development is also reducing competitiveness of Nigerian industries in the global market. It is too early for the present administration to start beating its chest on the said achievement of the power sector. The truth is that the power sector has so far underperformed compared to the huge investment in the sector in recent years.
We urge the Federal Government to give more encouragement to private electric power generators as a good alternative to power supply in the country, even though the DisCos have not lived up to expectations. They constantly complain about inadequate gas supply, aging infrastructure and maintenance challenges as limiting their ability to provide stable power supply. For example, transmission inefficiency has reportedly risen to 9.2 per cent, exceeding the 7 per cent Multi-Year Tariff Order (MYTO) benchmark. This also highlights the frequent grid collapses due to infrastructure insufficiency. All of this needs upgrade as well as addressing bureaucratic delays in executing transmission upgrades across the country.
Government should address policy inconsistencies and limited private sector participation, all of which has worsened the sector’s perennial crisis, leading to sustainable growth difficulties. In all, government and its policymakers need reminding that the potential of the power sector in economic development is such that nothing should be left to chance in revamping the sector. It is one of the prime considerations for both local and foreign investors in any country.