Nigeria’s national power grid remains highly unstable, with frequent collapses plunging Africa’s most populous nation into darkness. The unreliable electricity supply, blamed on aging infrastructure and under-investment, is costing the economy an estimated $29bn annually, according to the World Bank.
But what exactly is causing this persistent power crisis, and what can be done to resolve it?
Ageing infrastructure at the core
The backbone of Nigeria’s power woes lies in its outdated transmission network. Many of the country’s transmission lines and substations are over 40 years old, making them prone to failures. The government-owned Transmission Company of Nigeria (TCN) reports significant energy losses, with nearly 8 megawatts lost for every 100 megawatts sent into the grid.
Years of neglect and insufficient funding have left the grid vulnerable to sudden fluctuations in demand. Ayodele Oni, a Lagos-based energy lawyer, explains that these fluctuations frequently trip the system, leading to widespread outages.
Adding to the problem is the rising number of attacks on infrastructure. Over the past two years, there have been 108 recorded incidents of vandalism targeting transmission towers and lines, particularly in northern Nigeria.
A generation-distribution gap
Nigeria’s electricity generation capacity is another weak link. Despite an installed capacity of 13,500 megawatts, the country generates and distributes only about one-third of that. With a population of over 200 million, Nigeria produces less than 10 percent of the electricity generated by South Africa, which has a population three times smaller.
Although Nigeria is home to the world’s seventh-largest gas reserves, more than 75 percent of its electricity comes from gas-fired power plants concentrated in the south. The remaining power comes from hydroelectric facilities in the north.
Electricity is fed into the federal grid by generation companies, then distributed to consumers through 11 regional distribution companies. However, the lack of coordination and investment has left the system inefficient and inadequate for national demand.
What’s being done to fix it?
Privatising Nigeria’s electricity sector over a decade ago was supposed to solve these issues, but progress has been limited. Recognising this, the government has begun exploring alternative approaches:
- State-level power generation: In 2022, Nigeria permitted its 36 states to generate and distribute their own power. States like Lagos, the nation’s economic hub, are already developing independent power markets to meet local needs.
- Mini solar grids: Partnering with the World Bank, Nigeria plans to build 1,000 mini solar grids to improve access in rural communities.
- Decentralised solutions: Experts like Sherisse Alexander of WATT Renewable Corporation advocate for decentralised energy systems, such as solar power paired with battery storage, to supplement the national grid.
The road ahead
Nigeria’s path to energy stability requires bold reforms, increased investment, and decentralised solutions. Without addressing its outdated grid and improving power generation, the country risks further economic losses and stagnation in development.
Efforts to diversify power sources, reduce dependence on gas plants, and embrace solar technology offer hope. However, lasting change will depend on strong governance, public-private partnerships, and the resolve to prioritise energy security as a cornerstone of national progress.
