…As minister misses 6000MW deadline
Nigeria’s power sector was marred by incessant grid collapses, infrastructure vandalism, among several lows, which disrupted electricity generation and distribution in 2024.
The national grid experienced a total of 12 collapses in 2024, revealing weak and obsolete infrastructure and lack of investment in the sector.
The frequent grid collapses, according to power generation companies, led to huge commercial and technical losses over the years, with both the Kainji and Jebba hydro power plants recording over N30.55 billion loss to grid failure between 2022 and 2024.
However, the federal government, as part of effort towards ensuring stability, hinted at plans to establish separate grids to serve Nigerians at the regional levels.
“Given the weakness, the dilapidation and obsolescence of the existing grid, we believe that we need a backup grid that will serve as a failover option to the existing grid. If anything happens to the existing grid, there will be a backup option,” Adebayo Adelabu, Nigeria’s power minister said, in 2024.
Infrastructure vandalism
In 2024, the Transmission Company of Nigeria (TCN) reported over 13 cases of vandalism on power transmission infrastructure across the country, impeding power supply to citizens.
Expressing concerns over the alarming rise in vandalism of transmission installations across the country, the TCN pointed out that the growing threat urgently requires the cooperation of all citizens, particularly those in host communities where these installations are located.
It noted that increased vigilance from everyone is essential to combat the menace, as failure to do so will leave the power sector in a perpetual state of reparation.
“TCN has consistently engaged security operatives, host communities, and local vigilante groups in response to this issue. However, it is crucial that everyone works together to curb or eliminate the increasing attempts by vandals to damage transmission lines and cables, while also ensuring that stolen items are not sold in our markets,” it noted in a statement.
Read also: Strategies for enhancing state-driven growth in Nigeria’s electricity sector
Tariff Increase for Band A Customers
The Nigerian Electricity Regulatory Commission (NERC), in April, ordered the immediate upward review of electricity tariffs to N225/kWh, from N68/kWh, for just customers under the Band A feeder.
According to Musiliu Oseni, vice chairman of NERC, who made the announcement, Band A customers are those offered an average daily electricity supply of 20 hours, representing about 15 percent of the population, but they consume 40 per cent of the nation’s electricity.
Adelabu said the tariff hike was necessary to boost the liquidity in the nation’s power sector, which remains a critical issue, exacerbated by inefficiencies, outdated infrastructure, and poor revenue collection from an estimated eight million unmetered customers.
Adelabu also explained that there had been a funding gap in the sector, especially as the generation companies had been unable to pay for gas needed to generate power.
Minister fails on 6,000MW target
Also, Adelabu, power minister, had promised to achieve the 6,000 megawatts (MW) target by December 2024.
At several engagements during the year, he had assured that efforts were ongoing to achieve this target. However, BusinessDay checks showed that the highest generation on the grid in 2024 was less than 4500MW.
Speaking to BusinessDay on the government’s plan to achieve the 6,000MW target, Bolaji Tunji, special adviser on strategic communication and media relations, said that the government remains committed to the set target. He said several cases of vandalism are a setback to the government’s efforts to ensure efficient power supply.
Signing of electricity bill into law
President Bola Ahmed Tinubu signed the Electricity bill 2023 into law in February 2024. With the Act, power generation, transmission, and distribution were decentralised, empowering subnationals and individuals to operate in the sector.
The Act also seeks to address the development and environmental concerns of host communities, and sets aside five percent of the actual annual operating expenditures of power generating companies (GENCOs) from the preceding year for the development of their respective host communities
With the implementation of the Act so far, seven states, including Edo, Enugu, Ekiti, Imo, Ondo, Oyo and Lagos, have been granted regulatory autonomy over their electricity markets.
The NERC has transferred regulatory authority to these states, aiming to enhance local governance of electricity supply and potentially improve service delivery and efficiency within their respective markets.
