As we welcome the arrival of another new year and the thirteenth after the privatisation of Nigeria’s power sector, the nation stands at a critical juncture. End-users of electricity continue to look forward to lasting solutions to the challenges that have hindered reliable and safe power delivery to the different points of usage (POU). The need for the government’s interventions through strategic and holistic policy instruments to achieve this objective cannot be overemphasised.
The focus of an all-inclusive, strategic policy lever is to be guided and underpinned by the realisation that improvements in one segment should not be undermined by weaknesses in another. This then means that for such policy tools to be effective and enduring, they should capture the entire value chain of NESI, which traditionally includes the gas suppliers, generation, transmission, and distribution collectively.
As 2025 wound up, the sector witnessed the successful conclusion of sales transactions for Geregu Power, which was sold for $750m to little-known MA’MA Energy, while Eko DisCom was sold for $250m to a consortium of buyers – North-South Power, Axxela Limited and Stanbic IBTC Infrastructure Fund. Femi Otedola bought Geregu Power for $132m, scaling it up to a $618m profit-making machine after 13 years. While the successful completion of these transactions are pointers to the viability of the sector, they do not laterally suggest that the sector is about to overcome the liquidity challenge it has been wrestling with since privatisation and this is largely due in part to the misalignment between the intended high revenue yield and the deployment of appropriate instruments that can maximally drive the high revenue recovery, particularly at the DisCom end of the value chain.
To change this negative narrative, Distribution Companies (DisCos) must confront their lingering liquidity problems, and the time to start is NOW. Without financial stability, DisCos cannot meet operational and financial obligations to consumers or upstream stakeholders in the NESI value chain. Addressing liquidity is indispensable for sustainable growth and improved service delivery. The DisCos’ greatest Achilles’ heel remains high and unacceptable non-technical losses (NTL), particularly those resulting from energy theft through meter bypassing and illegal connections. NTL is the largest contributor to revenue losses, directly impacting the financial ability of DisCos to reinvest in operations and infrastructure.
Year after year, DisCos have lamented over the issue of electricity theft; yet they have been extremely reluctant to deploy the appropriate solutions that will create visibility at the consumers’ level, deter offenders and establish management measures aimed at the eradication of this menace. Globally, electricity utilities have embraced world-class technologies and human management practices to drastically reduce non-technical losses (NTL). Nigeria cannot remain an exception. The persistence of meter bypassing, illegal connections, and other forms of energy theft undermines the financial stability of the DisComs, denies consumers the reliable service they deserve, and threatens the entire Nigerian Electricity Supply Industry (NESI) value chain. The commencement of the journey towards becoming modern electric utilities, adopting best-in-class technologies and operating procedures by the DisComs, is an indispensable imperative. The time has come to move beyond outdated practices and embrace innovation that will deliver reliable, safe, and sustainable electricity to all stakeholders.
Typical of today’s modern electric utility is the ability to maintain clear remote visibility across its entire network. This is achieved through real-time data acquisition and analytics and real-time remote monitoring, powered by a reliable communications network tailored to operational needs. Robust communications backbone ensures near 100% uptime and uninterrupted service as well as seamless interaction between field devices, control centres, and consumers. In addition, a reliable communications network enhances real-time monitoring, enabling utilities to detect faults, theft, and inefficiencies in real time. Analytics derived from continuous data streams empower utilities to optimise performance and plan proactively.
Across the world, utilities invest heavily in communications infrastructure as a key driver of modernisation. This includes:
Advanced Metering Infrastructure (AMI) with secure, tamper-proof communication channels.
Supervisory Control and Data Acquisition (SCADA) systems for real-time grid management.
Fibre optics, radio frequency, wireless, and satellite networks tailored to operational geography.
Cybersecurity frameworks to protect critical infrastructure and consumer data.
The recent smart metering interventions by the Federal Government – DISREP, PMI, and MAF- provide the right avenue for Nigeria’s DisCos to embark on their long-overdue modernisation journey. These initiatives represent a strategic opportunity to address persistent challenges in the electricity distribution segment and align with global best practices. All successful smart metering or AMI deployments globally have prioritized and invested in reliable and robust communications solutions. This investment has been the cornerstone of achieving smart metering goals – eradicating energy theft, increasing revenue and improving operational performance. A dependable and robust communications network is the backbone of any AMI deployment that ensures near 100% uptime for two-way communication and real-time data acquisition and monitoring.
Stakeholders in the electricity distribution segment must now adopt global best practices in deploying Advanced Metering Infrastructure (AMI). Experience from successful utilities worldwide has consistently shown that communication infrastructure is the most critical component of any smart metering initiative. Selecting the right communications network depends on the specific operational needs of each DisCom. At the heart of this decision lies the choice of spectrum for connectivity, which is both strategic and consequential. Choosing the right communications spectrum ensures reliability, scalability, high capacity, wide bandwidth channels and low interference risk. In contrast, a wrong spectrum choice can result in poor connectivity, unreliable communication, and ultimately operational failure.
It is widely believed that communications platforms should be the primary focus of any smart deployment. By definition, smart systems are about “connecting devices” – enabling seamless interaction between meters, sensors, control centers, and consumers. Without a robust communications backbone, the promise of smart metering and Advanced Metering Infrastructure (AMI) cannot be realised. DisComs should select and plan carefully for the right communications platform that suits their AMI and smart grid endeavours and make frantic efforts to invest richly in such a robust communication network – it is the foundation of modernisation, and it holds the key to operational excellence, drastic reduction in non-technical losses and improving liquidity.
The year 2026 must mark a turning point for Nigeria’s power sector. By addressing liquidity challenges, reducing non-technical losses, and implementing holistic policies, the nation can move closer to achieving reliable, safe, and sustainable electricity for all. This is not just an economic imperative but a social contract with the Nigerian people.
Engr. James Kolawole, MD/CEO of Aquivis Technologies, is a data enthusiast and power sector technical communications expert on meters and metering infrastructure.
