By Tosin Kolade
Nigeria is facing frequent collapses of its national electricity grid, severely impacting the economy, society, and national development.
Regular power outage disrupts businesses, particularly Small and Medium Enterprises (SMEs), leading to substantial financial losses.
Many companies rely on costly diesel generators, raising operational expenses and hindering competitiveness.
The unreliable electricity supply deters both local and foreign investment, stifling economic growth and job creation.
As of 2021, about 85 million Nigerians, 43 per cent of the population lack access to grid electricity, making Nigeria the country with the largest energy access deficit globally.
The unreliable power supply poses huge challenges for citizens and businesses, leading to economic losses.
In a recent report, the Association of Small Business Owners of Nigeria stated that 25 per cent of manufacturing businesses have ceased operations so far in 2023 alone.
The World Bank’s 2020 Doing Business report ranks Nigeria 171st out of 190 countries in terms of electricity access, revealing major barriers to business growth.
The estimated annual economic losses of $26.2 billion are staggering.
According to a survey by the Nigerian National Bureau of Statistics (NBS), 67 per cent of businesses rely on generators due to inconsistent electricity supply.
Assessments by the Nigerian Electricity Regulatory Commission (NERC) also revealed a 20,000 megawatt shortfall in power generation.
The disproportionate effect of power outages on SMEs has been documented, detailing significant revenue losses due to frequent interruptions.
The social implications are severe; citizens struggle to access essential services like clean water, healthcare, and education.
For example, Mariam Abdullah, a small shop owner in Mararaba, told News Agency of Nigeria (NAN) that: “Every time the power goes out, I lose customers. I can’t keep my products refrigerated, and it costs me a lot to run a generator”.
Ekeji Thomas, a father of three adds, “My kids can’t study at night without light. It’s affecting their grades, and I worry about their future. We deserve better than this.
“Hospitals, which rely on stable electricity for critical equipment, are particularly vulnerable during outages.
“Schools face operational challenges that affect the quality of education”.
Frequent grid collapses have notable environmental consequences.
Many businesses and households resort to diesel generators during outages, contributing to air pollution and greenhouse gas emissions.
Experts argue that reliance on fossil fuels exacerbates Nigeria’s environmental challenges and undermines sustainable energy efforts.
They believe that inefficient energy use and dependence on backup systems further waste resources and heighten energy scarcity.
Many Nigerians also linked the collapse of the national grid to various factors, including aging infrastructure, poor maintenance, corruption, vandalism, and possible sabotage.
It may be recalled that the Arewa Consultative Forum (ACF) recently called for a state of emergency in northern Nigeria, following severe power shortages impacting economic activities.
The ACF National Publicity Secretary, Prof. Muhammad Baba stated that the situation is dire, with officials from the Transmission Company of Nigeria (TCN) indicating that the problem may persist due to technical and security challenges.
Senators from northern Nigeria are also demanding swift action to restore electricity to Kano, Katsina, and Jigawa states, where residents are suffering from significant outages.
Speaking as the Northern Senators Forum, they emphasised the need for prompt intervention to alleviate the hardships faced by their constituents.
According to them, the prolonged outages, primarily caused by vandalism and national grid disturbances, have placed considerable economic strain on the population.
In Osun, Ondo, and Ekiti states, consumers reported 105 grid collapses over the past decade, with three occurring in October 2024 alone.
In response to these concerns, Osun State is pursuing its electricity generation project to supply neighboring areas, while Ekiti State has launched the ‘Ile Iyi’ Electric Power Company to enhance local services.
Dr Joy Ogaji, CEO of the Association of Power Generation Companies, reported 162 instances of grid instability since 2013.
She said that relying solely on a free mode of operation is insufficient to address frequency fluctuations that disrupt power generation, particularly in industries.
This has prompted calls for privatising power generation and increasing state involvement.
Former Vice-President, National Union of Electricity Employees, Sadiq Adewale, said that vandalism and imbalances between supply and demand contribute to these failures.
He emphasised the need for monitoring to identify the causes of grid instability.
The Kano Electricity Distribution Company also is exploring renewable energy solutions to reduce reliance on the national grid.
Several South-eastern state governments are seeking alternative electricity sources due to frequent national grid failures, which have occurred at least seven times in 2024.
Residents in states like Anambra, Ebonyi, and Enugu have been moved to higher payment bands without consent, leading to complaints about poor value for money.
Local industrialists struggle to maintain operations due to power fluctuations, while government officials recognise the need for reliable energy sources.
The Enugu Electricity Distribution Company (EEDC) is implementing technologies to improve service, and new regulations are expected to foster a more sustainable electricity market in Enugu State.
Anambra’s government also announced plans to reduce reliance on the national grid by focusing on renewable energy and establishing its own electricity market.
Residents in these states have expressed frustration over high tariffs amidst ongoing power outages.
Stakeholders and civil society organisations have raised concerns about the Transmission Company of Nigeria (TCN), as a major contributor to ongoing issues due to poor operations and inadequate funding.
Mrs Nafisat Ali, TCN’s Independent System Operator, highlighted maintenance gaps and a “use until failure” culture as significant problems in the sector.
She pointed out that TCN needs over 3.2 billion naira monthly for maintenance and emphasised that inconsistent coordination among power generation, transmission, and distribution further undermines stability.
They urged infrastructure improvements and better stakeholder cooperation.
Reiterating the commitment of the Federal Government in reversing this trend, Mr Adebayo Adelabu, the Minister of Power, has announced plans to implement a distributed solar power model in northern states to provide reliable electricity.
“Each state will have its own solar source, starting with 50 megawatts and scalable to 100 megawatts.
“This initiative aims to alleviate pressure on the national grid and enhance power supply to households, offices, institutions, and industrial clusters”.
Adelabu attributed the recent blackout affecting 17 northern states to vandalism of the Shiroro-Kaduna transmission line.
He assured that repairs would be completed within three to five days, supported by enhanced security measures for the repair crews.
The minister also noted plans to upgrade aging transmission infrastructure to ensure a more stable electricity supply in the north and pledged to prevent billing for customers during the blackout period.
He acknowledged challenges posed by out-dated infrastructure, including a 47-year-old transformer that recently exploded, and committed to effectively managing the grid until a comprehensive overhaul can be achieved.
NERC, the regulator, considers engaging consumers as critical partners in addressing the challenge.
Recently it held a public hearing to address critical issues in the Nigerian Electricity Supply Industry (NESI) due to widespread power outages and total blackouts in the northern region on October 21.
NERC Chairman, Sanusi Garba, assured the public of the Commission’s commitment to resolving these disruptions and emphasised the need to enforce grid codes to enhance compliance among operators.
Garba revealed that NERC has allocated 30 billion naira for grid improvements, including spinning reserves to stabilise power generation.
Dr Enoruwa Obayiuwana, a lecturer at Obafemi Awolowo University, called on the federal government to transfer power generation responsibilities to private organisations to address the challenges.
He pointed out that much of the power-generating equipment is outdated and requires preventive maintenance rather than repairs after failures.
Obayiuwana emphasised insufficient investment in power generation, noting the government’s failure to build new power stations despite the growing population and increasing commercial activities.
“This lack of investment creates an imbalance between power supply and demand, leading to transmission burdens and grid instability, which can result in frequent outages”, he said.
He also said sabotage, such as transformer theft and damage to electrical cables, as contributing factors to the problem.
The don however recommended encouraging independent power generation by state governments to alleviate pressure on the federal government.
Experts agree that renewable energy can help Nigeria meet its energy needs while powering sustainable economic growth in line with global climate and sustainable development objectives.
They assert that adopting renewable energy sources such as solar, biomass, and hydro offers a compelling solution to address energy poverty and promote sustainable development in Nigeria. (NANFeatures)
