Over a decade after Nigeria’s power sector was partially privatized, hopes for improved electricity access remain dim. Despite promises, over 80 million Nigerians, mostly in rural areas, lack power, leaving households and businesses in the dark.
Efforts to hit a 6,000-megawatt (MW) generation target by December fell short. Average daily generation hovered at 4,280MW in 2024, well below the country’s installed capacity of 13,000MW. A report by the Nigerian Electricity Regulatory Commission (NERC) revealed that only 5,100MW was available from the 28 grid-connected power plants.
The financial state of the power generation companies (GenCos) is dire. As of August 2024, unpaid debts reached ₦1.5 trillion, part of an alarming ₦2.7 trillion owed over the years. Tony Elumelu, Chairman of Transcorp Power, urged the government to settle these debts, stating his firm alone is owed ₦250 billion. “We cannot subsidise the sector indefinitely,” he warned.
Nationwide Blackouts and Grid Collapses
Incessant grid collapses (12 recorded in 2024) have compounded the crisis. The Transmission Company of Nigeria (TCN), wholly government-operated, has spent over $7.5 billion in upgrades since privatization but remains a weak link. TCN also battles infrastructure sabotage, with vandals destroying 115 transmission towers this year.
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The government recently ordered TCN’s unbundling into two entities to improve efficiency.
Metering and Tariff Struggles
On the distribution front, 55% of the country’s 12 million electricity consumers remain unmetered, enduring arbitrary billing. A tariff overhaul in April increased rates for Band-A customers in exchange for a promised 20 hours of power supply. However, many consumers report paying higher rates without receiving the promised service.
Princewill Okorie, Chairman of the Electricity Consumers Protection Centre, criticised estimated billing as exploitative in a report by Vanguard. “Millions pay for energy they never receive. This injustice must stop,” he said.
