How NEPA was broken into pieces and sold and why Nigerians still live in darkness

After the clash between Obasanjo and Atiku over control of the privatization process, the federal government went ahead with the reforms — but what many Nigerians don’t know is exactly how NEPA was sold and why the results failed.

Let’s break it down.

1. NEPA Was Broken Into 18 Companies

Before privatization, NEPA was one massive, inefficient monopoly.

To prepare it for sale, the government dismantled it into 18 different companies:

6 Generation Companies (GenCos)

11 Distribution Companies (DisCos)

1 Transmission Company (TCN)

The idea was simple:

“Smaller companies will be easier to manage, attract investors faster and give Nigerians steady light.”

That was the theory.

2. Who Bought the Power Companies?

Most of the GenCos and DisCos were sold to:

(1)Political allies
(2)Business groups with little experience in the power sector
(3)Consortiums formed overnight
(4)Investors who borrowed money just to buy the assets

Many buyers were selected because of connections, not competence.

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Estate

Chief Magistrates’ Court

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Lekki

Lagos

Transmission was too sensitive to sell, so the government kept it.

3. WHY EVERYTHING FAILED

Here is the bitter truth:

The buyers paid for electricity companies that had no electricity.

The system was already weak, broken, and outdated — and needed massive investment.

But the new owners:

(1)Expected quick profits
(2)Didn’t invest enough
(3)Prioritized revenue collection over infrastructure
(4)Blamed gas shortages and vandalism
(5)And kept increasing tariffs without improving supply

It was a disaster waiting to happen.

4. The Tariff Trap

Another major issue:

Government was supposed to increase electricity tariffs gradually so companies could survive.

But politicians refused to do it because of elections — leaving the companies broke and angry.

So:

(1(GenCos couldn’t generate enough power
(2)DisCos couldn’t maintain transformers
(3)TCN couldn’t upgrade the grid
4)And Nigerians continued living in darkness

5. The Final Blow: “Privatization Without Preparation”

Experts around the world later confirmed what Obasanjo and Atiku’s feud had already revealed:

Nigeria privatized the power sector before fixing the power sector.

We sold:

(1)broken lines,
(2)dead transformers,
(3)empty power plants,
(4)outdated grids,
(5)and companies that couldn’t survive.

The outcome was predictable — and painful.

So Why Are We Still in Darkness Today?

Because Nigeria didn’t privatize electricity…
We transferred a national problem to private hands without solving the root issues.

Until:

(1)generation increases,
(2)transmission is modernized,
(3)distribution invests in real infrastructure,
(4)and politics stays away from tariffs…

Nigeria will keep going in circles.