Nigeria’s electricity sector faces major challenges that have resulted in poor power supply for decades. As Adebayo Adelabu takes over as the new Minister of Power, improving the country’s electricity situation will be a top priority.
Some of the key problems plaguing Nigeria’s power sector include:
- Low Generating Capacity: Nigeria’s power generation hovers around 4,000-5,000 MW, barely enough to serve major cities like Lagos. Successive governments have failed to significantly boost capacity despite privatization and deals like the Siemens agreement.
- Poor Maintenance and Vandalism: Regular breakdowns of transmission infrastructure and theft of distribution equipment lead to frequent outages. Upgrading aged facilities is critical.
- Metering Gap: The majority of Nigerian households lack prepaid meters and rely on estimated billing, which is often inflated. Meter rollout programs have struggled to meet targets.
- Rising Tariffs: Despite poor supply and limited connections, electricity tariffs keep increasing, frustrating consumers. There are concerns additional hikes could be on the horizon.
- Gas Shortages: Inadequate gas supply to power plants continues to hamper generation. Securing reliable and affordable gas is key to boosting output.
To improve Nigeria’s electricity access and reliability, Minister Adelabu will need to urgently address these interlinked challenges. Key priorities include upgrading infrastructure, accelerating meter deployment, enhancing maintenance and security, resolving gas supply issues, and reviewing contentious tariff policies. Success in the sector will require coordinated efforts across power agencies, regulators, and companies. With the right reforms, Nigeria can work towards achieving stable power for homes and businesses.