Remember those times when your friend in another town calls and asks, “una get light?” And when it is you? You are either noise polluting the whole street or sweating like a gymnast under a hot sun, in your house. That question already tells you that there’s not been power in that area for a while. It is a constant mess across Nigeria.
Nigeria’s electricity supply has long been characterised by chronic shortages and erratic outages, posing significant challenges to households, businesses, and economic development.
Despite substantial investments and loans directed towards revamping the power sector, the nation continues to grapple with inadequate generation capacity and infrastructure deficiencies.
As of 2022, Nigeria boasted an installed electricity generation capacity of 12,500 MW, yet actual production hovered around a quarter of that figure, leaving millions of citizens reliant on costly (pay attention to this word) power generators to meet their energy needs.
By April 2024, this situation worsened, with power generation plummeting to 2,775 MW, exacerbating the daily struggles of households and businesses.
Reports reveal staggering financial expenditures on Nigeria’s power sector, totaling trillions of Naira and billions of dollars over the years.
Systemic challenges, including corruption, inadequate maintenance, and outdated infrastructure, continue to undermine efforts to modernise and expand the power grid.
The nation has invested heavily in improving its power sector, with mixed results.
Since 1999, staggering sums have been poured in. The Senate was told in 2015 that Nigeria spent ₦2.74 trillion on power between 1999 and 2015., followed by ₦1.7 trillion between 2018 and 2020.
Even under the past administration, over $7.5 billion has been directed towards transmission alone, with additional support from the Central Bank of Nigeria estimated at over ₦1.5 trillion in the past seven years.
International financial institutions haven’t shied away from supporting Nigeria’s ‘ambitions’.
From China’s 2002 loan for gas power plants to the World Bank’s recent $449 million and $301 million contributions and a separate $3.45 billion loan approved in October 2023, there’s more that would be gotten.
The African Development Bank and US-EXIM Bank have also joined the effort, providing a $550 million loan in November 2022 and a $1.5 billion loan for solar power infrastructure in 2022 respectively.
In April 2024, we read about the arrival of power transformers for the $2.3 billion Siemens power project. This signifies progress, but the road ahead remains long.
Several factors contribute to Nigeria’s power woes. Deficient gas supplies, inadequate infrastructure for transmission and distribution, and a history of policy inconsistencies all play a role. The significant spending on the sector raises questions about transparency and efficiency in project execution.
Nigeria’s epileptic power supply has severe economic and social consequences. Businesses struggle with production costs, hindering growth. Hospitals face critical equipment outages, jeopardizing healthcare delivery. Homes experience disruptions to daily life, impacting education and leisure activities.
Nigeria needs a multi-pronged approach. Continued investment in infrastructure improvement and generation capacity is crucial. Diversifying the energy mix beyond gas, with a focus on renewable sources like solar, holds promise.
VERY IMPORTANT, addressing issues of transparency and accountability in the power sector is essential.
For now, Nigeria would keep getting loans to feed the 1% and our national grid will keep collapsing.
Lord Rickie Speaks 