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| Nigeria's Electricity Challenges and High Costs |
This is a common scenario in Nigeria where lights go on and off or simply go off completely and leave millions of people in the dark. But this is not just about a broken light bulb; it is the story of a system that has collapsed at a huge cost to the nation. The Senate recently expressed its anger by slamming the power operators for their poor management, which has led to the failure to deliver on their pledges.
Around ten years back in the year 2013, when the power sector was liberalized, people in Nigeria were informed that there would be a stable supply of electricity, less use of generators, and a better future (quite literally). When searching for a match in today’s society, it seems that the dream has turned into a nightmare. The GenCos, TCN, and DisCos are in hot water for poor performance, where the grid is as susceptible as a house of cards.
This is where the problem lies; every time the national grid collapses, and it does so rather frequently, it is estimated that the economy loses about N42 billion in the process of restoring the power supply. Think about it: it is losing billions of dollars to restart three power plants that are the backbone of the power supply system of the country. It is like trying to fill a sieve—it is so annoying, energy-sapping, and clearly not sustainable.
The Senate, led by President Godswill Akpabio, isn’t mincing words. “They’ve added no value,” he said bluntly, echoing the sentiments of millions of Nigerians who are fed up with perpetual blackouts and exorbitant electricity bills. Lawmakers questioned why citizens are still forced to buy their own transformers, accusing operators of pocketing profits instead of investing in infrastructure.
And it’s not just about poor management. The numbers paint a grim picture of a system that’s fundamentally flawed. GenCos produce more energy than the TCN can transmit, and the DisCos seem more interested in squeezing customers than fixing the grid. Meanwhile, the average Nigerian is stuck in a loop of paying for services that rarely work.
Let’s talk about the human cost for a moment. When the grid fails—and it often does—it’s not just homes that go dark. Businesses lose revenue, schools shut down, and hospitals scramble to keep critical equipment running. This isn’t just an inconvenience; it’s a national crisis.
So, what went wrong? This was the time when privatization was deemed the solution to all the power problems in Nigeria. However, it has compounded them. The Senate is now in the process of considering bills that either reform or repeal the privatization policy. But here’s the big question: is reversing privatization the solution, or is it just another part of a bigger problem that needs to be approached from a completely different angle?
There is also the trust deficit to deal with. The people of Nigeria are sick and tired of being offered hope and partial measures. The biweekly grid collapse is not only costly; it is a symbol of the lack of proper focus on durable solutions. What the country requires is not another band-aid but a drastic change to the current system.
In the future, there is not much to do, but it is very important. Thus, increased supervision, stronger structures, and the shift in emphasis towards green energy may help to reverse the trend. But it will not be enough to amend the policies—it will take political commitment, openness, and responsibility.
We need a power sector that delivers and not one that embezzles billions of naira and presents the nation with darkness. Thus, the nation is trapped in the pattern of high costs and low returns forever.