IN 2024 alone, the national grid has collapsed no less than 11 times. Sadly enough, it is still just a minor incident, and part of the troubling pattern of frequent and frustrating power outages that have plagued Nigeria for years.
This unfortunate situation is yet again more evidence of the persistent vulnerabilities in Nigeria’s energy infrastructure, which is often attributed to outdated equipment, inadequate maintenance, and systemic issues within the power sector.
With the rate at which these power collapses occur, it is quite obvious that there is an urgent need for comprehensive reforms and investments in the power sector to stabilize the grid and ensure a much more reliable power supply.
Nigerian citizens and their daily endeavors have no doubt been affected by the grid collapses in a very profound manner. Households are affected, businesses and all other essential services are affected as well.
Hospitals struggle to provide critical care, manufacturing processes come to a halt, and everyday activities are severely hampered. The reliance on alternative power sources, such as generators, becomes a necessity, albeit one that is cost intensive and not entirely reliable.
Economically, the consequences of grid collapses should not be underestimated. How can we hope to secure investor confidence when companies are reluctant to operate in an environment with such unreliable electricity?
The cumulative effect of these disruptions is a substantial economic burden, estimated to cost Nigeria billions of dollars annually. For the sake of economic stability, the hands of all necessary parties involved must be on deck for urgent and sustained efforts to overhaul the power sector.
Since the early 2000s, Nigeria’s power grid has experienced over 200 collapses, leading to widespread blackouts. These collapses have previously been attributed to outdated infrastructure, insufficient maintenance, and a lack of investment in the power sector.
In spite of efforts to privatize the electricity sector in 2013, the expected improvements in power supply have not materialized, leaving many Nigerians without reliable electricity.
When talks of privatizing Nigeria’s power sector arose initially, it was intended to address some of these issues by bringing in private investment and expertise but after many years this transition has not been smooth and has instead been fraught with difficulties.
Many of the private companies that took over the generation and distribution of electricity have struggled with financial and operational challenges, and furthermore, the Transmission Company of Nigeria (TCN), which remains under government control, has faced its own set of problems, including inadequate funding and a lack of skilled personnel. All of this has contributed to the continued instability of the national grid.
The imbalance between electricity supply and demand is a major factor contributing to this quagmire. Electricity generated by the country is significantly lower in terms of its capacity than the demand, and is leading to frequent load shedding and power outages. Nigeria’s continued reliance on gas-powered plants, which are vulnerable to disruptions in gas supply, further exacerbates the problem.
There have been efforts to diversify the energy mix, including investments in renewable energy sources like solar and hydropower, but they have been slow to take off, leaving the grid heavily dependent on a few sources of power.
Over time, there have been some positive developments, such as the achievement of over 400 consecutive days of uninterrupted grid stability in 2023. However, these successes have been overshadowed by recurring collapses and ever-present challenges in the power sector.
Now looking at this year alone, the national grid has failed a total number of 11 times, which has been quite concerning and frustrating for most citizens. Each collapse has resulted in widespread blackouts, affecting major cities like Abuja, Lagos, and Kano, and disrupting daily life, businesses, and essential services.
The 11th collapse, which occurred on November 5th, 2024, was particularly impactful as it left millions without electricity and caused significant disruptions across the nation. The Transmission Company of Nigeria (TCN) reported that the collapse was due to a series of line and generator trippings that caused instability in the grid.
At the onset, experts attributed the situation to the usual suspects: obsolete equipment, inadequate gas supply, and poor coordination of plants and gas pipelines. There have been calls for the decentralization of the power grid as a potential solution to these recurring problems.
Recently however, the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr Olanipekun Olukoyede, has now come out to assert that the frequent collapse of the national grid is a result of fraud in the electricity sector, especially the use of poor and substandard materials.
According to Olukoyede, Nigerians would be deeply sorrowful if they had any inch of an idea the amount of fraud taking place in the electricity sector. He stated, “As I am talking to you now, we are grappling with electricity. If you see some of the investigation we are carrying out within the power sector, you will shed tears.”
“People who were awarded contracts to supply electricity equipment, instead of using what they call 9.0 gauge, they will go and buy 5.0 … So every time you see the thing tripping off, the thing gets burnt, and all of that. It falters, and it collapses; it’s part of our problems”, Olukoyede said.
Olukoyede’s perspective invites the necessary implementation of stringent anti-corruption measures and greater accountability within the electricity sector. Not only does the use of substandard materials waste public funds, it also endangers lives and has the potential to significantly hamper the country’s economic progress.
Following Olukoyede’s statements, it is safe to say that the notion of supposedly professional contractors eschewing higher standards of quality and safety, is one that raises a lot of concern, and begs to wonder as to how or why there isn’t any robust regulatory framework set in place to ensure that these contractors adhere strictly to these standards in the first place.
Ideally, there should be stringent vetting processes for awarding those contracts, as well as regular inspections to ensure compliance. Not to mention severe penalties for those found guilty of engaging in these fraudulent practices.
The EFCC will also need to build public trust in this situation if they want to be taken seriously. This can be done by making information about ongoing investigations and their outcomes publicly available, which will keep citizens in the know and allow holding their leaders accountable and demanding better governance. Thankfully, the commission seems to have made a few attempts at this very recently.
Ultimately and beyond all of this, all stakeholders, including the private sector, need to come together and collaborate for the development of the reliable and efficient power supply we deserve in light of our rich natural resources.
Companies operating in the electricity sector have a vital role to play in ensuring that Nigeria’s power infrastructure is developed and maintained in a responsible and sustainable manner. The fact that some private sector companies struggle to commit to ethical business practices is a disheartening reality that continues to sabotage our progress and development.
A culture of integrity and transparency within the private sector is essential for creating a reliable and efficient power supply. It’s high time ethical business practices and corporate social responsibility become a top priority for these companies, especially if they want to build trust with consumers scattered across the country, regulators, and other stakeholders.
