Uncertainty hits Nigeria’s power sector as Adelabu foot-drags on policy direction
Uncertainty hovers around Nigeria’s power sector as operators wait on Minister of Power, Adebayo Adelabu for policy directions two months after his inauguration.
Adebalu, in September, said the Government plans to add 20,000 megawatts of electricity as the country battles with a decade-old 4,500mw capacity.
The target struck stakeholders differently; some believed it was doable, while others perceived it as a political statement.
Meanwhile, DAILY POST gathered that the Minister is yet to come up with a blueprint upon which the additional 20,000 electricity capacity would be championed.
But Adebalu has not failed to assure Nigerians that President Bola Ahmed Tinubu’s Government would provide adequate and reliable electricity.
He gave similar assurances at the ongoing three-day Nigerian Electricity Supply Industry (NESI) Market Participants & Stakeholders Roundtable (NMPSR).
But energy experts say the perennial problems facing Nigeria’s generation, transmission and distribution value chain transcend from elusive political statements to concrete policy documents required to drive the industry.
The electricity distribution companies are battling liquidity issues and low remittance compounded by the metering gap still, the generation companies struggle with poor investment and transmission inadequacies, leading to incessant grid collapses.
For years now, the country has struggled with 4,500-5,000 megawatts of electricity daily for a population of over 200 million people.
The problems of the Nigerian power industry have remained unsolved, becoming a persistent clog in the wheel of progress for Nigeria’s economy.
Amid the prevailing power sector challenges, experts posited that unveiling a succinct policy blueprint in power would serve as a compass for efficiently implementing the Government’s plan.
Speaking in an interview with DAILY POST, Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, insisted that Nigeria’s power sector has failed in all ramifications, hence a need for a thorough review.
According to him, the expiration of the Performance Agreement and Licensee Moratorium on November 1 2023 would avail the Government the opportunity to rejig the sector.
“Government should bring together all critical stakeholders to look at the power sector. The power sector in all ramifications has failed; hence, the review will bring to the table all players,” he said.
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Daily Post Nigeria
BUSINESSUncertainty hits Nigeria’s power sector as Adelabu foot-drags on policy directionPublished on October 31, 2023By Ogaga Ariemu
Uncertainty hovers around Nigeria’s power sector as operators wait on Minister of Power, Adebayo Adelabu for policy directions two months after his inauguration.
Adebalu, in September, said the Government plans to add 20,000 megawatts of electricity as the country battles with a decade-old 4,500mw capacity.
The target struck stakeholders differently; some believed it was doable, while others perceived it as a political statement.
Meanwhile, DAILY POST gathered that the Minister is yet to come up with a blueprint upon which the additional 20,000 electricity capacity would be championed.
But Adebalu has not failed to assure Nigerians that President Bola Ahmed Tinubu’s Government would provide adequate and reliable electricity.
He gave similar assurances at the ongoing three-day Nigerian Electricity Supply Industry (NESI) Market Participants & Stakeholders Roundtable (NMPSR).
But energy experts say the perennial problems facing Nigeria’s generation, transmission and distribution value chain transcend from elusive political statements to concrete policy documents required to drive the industry.
The electricity distribution companies are battling liquidity issues and low remittance compounded by the metering gap still, the generation companies struggle with poor investment and transmission inadequacies, leading to incessant grid collapses.
For years now, the country has struggled with 4,500-5,000 megawatts of electricity daily for a population of over 200 million people.
The problems of the Nigerian power industry have remained unsolved, becoming a persistent clog in the wheel of progress for Nigeria’s economy.
Amid the prevailing power sector challenges, experts posited that unveiling a succinct policy blueprint in power would serve as a compass for efficiently implementing the Government’s plan.
Speaking in an interview with DAILY POST, Kunle Olubiyo, the President of the Nigerian Consumer Protection Network, insisted that Nigeria’s power sector has failed in all ramifications, hence a need for a thorough review.
According to him, the expiration of the Performance Agreement and Licensee Moratorium on November 1 2023 would avail the Government the opportunity to rejig the sector.
“Government should bring together all critical stakeholders to look at the power sector. The power sector in all ramifications has failed; hence, the review will bring to the table all players,” he said.
Similarly, an energy expert, Joseph Eleojo said the Minister’s planned target has unveiled his lack of understanding of the country’s power sector challenges.
“For the Minister of Power to be talking of adding only 20,000mw smacks of his lack of knowledge of the electricity problems. Is the Minister gunning for a paltry 20,000mw for 200 million people?
“Why wait till 2026 to generate only 20,000mw? It is ridiculous and shows the Minister’s lack of knowledge of the electricity sector.
“The quick fix is to harness the vast resources of sun and water we have across Nigeria to generate electricity. Each local Government should be given direct support and supported by competent consultants and equipment manufacturers in solar and mini-hydro to generate electricity in their local Government areas since the new Electricity Act allows them to generate, transmit and distribute such.
“There are templates for rural electrification that are practicable, realistic and workable in South America, Southeast Asia and other places we can adopt. I pray for the President and his team to realise the importance of electricity quickly in this infancy of his administration.
Also, a former managing Director in Nigeria’s power sector, who preferred anonymity, said there is a need for precise strategies for proper policy implementation.
“Before you make a policy statement, what strategies are in place to achieve the 20,000mw target by 2026? What are the components to drive this target within this period? Is the capacity coming from gas, hydro, or solar, or what is the specific strategy to achieve the said target?
“The Minister must devise how he intends to achieve this; if not, it is a mere political statement”.
“It becomes more surprising that the Minister intends to achieve 20,000mw in three years when the country has been battling with 4,500mw generation capacity for decades.
“There should be a blueprint or roadmap to achieving the said target. Meanwhile, what Nigerians need is an adequate power supply. It is achievable if there are strategies and methods put in place to achieve the target.
“As much as possible, the government should have a concrete plan and strategy to deliver power to the people”, he stated.
