- Lack Of Electricity Killing Nigerian Industries, GDP. -Adesina
- Says AfDB Invested $210 Million To Strengthen Nigeria Grid
- NERC Reveals Real Reasons For incessant Grid Collapse
- FG to Hand Over National Grid to Independent Operators
Electricity is widely recognized as a secondary energy source that is essential to modern life and critical for driving socio-economic development.
It powers industries, homes, and businesses, forming the backbone of any nation’s progress.
However, in Nigeria, recurring energy crises have become an existential challenge, severely straining the country’s economy. These energy challenges have forced many businesses to rely on alternative sources, such as fossil fuels, to keep their operations running.
Despite recent hikes in electricity tariffs and repeated government promises of a more stable power supply, Nigeria continues to face systemic power outages.
On Saturday, October 19, 2024, the Transmission Company of Nigeria (TCN) announced yet another nationwide blackout. The outage, which affected millions across the country, was caused by what TCN described as a “temporary disturbance in the national grid.”
The blackout occurred during the early hours of the day and sparked widespread frustration among Nigerians. It led to renewed criticism of the government’s decision to increase electricity tariffs without delivering on promises of improved service.
For many, this latest outage raised questions about whether the hike was justified and whether Nigeria’s energy sector can ever achieve stability.
In response to the nationwide outage, the TCN quickly issued a statement providing a more detailed explanation of the cause of the blackout. According to TCN, the outage was triggered by an explosion in a current transformer at the 330kV Jebba Transmission Substation.
This incident resulted in a total system collapse, causing the grid to drop to zero megawatts (MW) and halting electricity distribution to all of the country’s electricity distribution companies (DisCos).
Ndidi Mbah, the spokesperson for TCN, explained in a statement that engineers at the Jebba substation were able to isolate the faulty transformer and carry out the necessary switchings to restore power.
The engineers reconfigured the busbar arrangement, and by late afternoon, power had been restored to most parts of the grid. While the swift response was somewhat reassuring, the blackout marked the third grid collapse in just one week and the seventh nationwide outage in 2024 alone.
The recurring failures of the national grid have become a significant concern for both the public and the government. The Minister of Power, Adebayo Adelabu, addressed the situation by attributing the ongoing crises to Nigeria’s outdated and overburdened energy infrastructure.
He acknowledged that much of the country’s power system relies on obsolete equipment, and the government is working on plans to provide alternative grids across different regions in an effort to improve the reliability of power supply.
Despite Nigeria’s potential to generate around 13,000 megawatts (MW) of electricity, experts point out that weak and outdated infrastructure limits the country to transmitting less than 5,000 MW, leaving the nation with chronic electricity shortages.
This limitation is particularly problematic given Nigeria’s population of over 200 million people, many of whom still lack access to reliable electricity.
The President of the African Development Bank (AfDB), Akinwunmi Adesina, has pointed out the gravity of Nigeria’s electricity challenges. He revealed that approximately 86 million Nigerians currently live without access to electricity, making Nigeria the global leader in this regard.
Adesina highlighted that the lack of a reliable power supply is crippling businesses and industries across the country, contributing significantly to Nigeria’s economic struggles.
According to estimates from the International Monetary Fund (IMF), Nigeria loses approximately $29 billion annually, or 5.6% of its GDP, due to unreliable power supply.
Furthermore, the country spends a staggering $14 billion per year on generators and fuel. Adesina noted that the widespread use of generators has become a necessity for most businesses in Nigeria, turning what should be an abnormal situation into a normal part of life.
“Nigeria has gas and crude oil in abundance,” Adesina said, “yet 86 million people live daily without electricity. Today, Nigeria is the number one country in the world in terms of the total number of people without electricity.”
He added that AfDB is heavily investing in Nigeria’s electricity sector, as well as in other parts of Africa.
“The bank is partnering with the World Bank to expand electricity access across the continent, with the ambitious goal of reaching 300 million people by the end of 2030”.
To support Nigeria’s power sector recovery program, AfDB has invested over $200 million in grid transmission to help strengthen the national grid against future collapses.
Additionally, the AfDB has contributed $210 million to the Nigeria transmission project, aimed at improving power evacuation and fostering regional interconnection.
According to Adesina, these investments are part of a broader initiative known as “Mission 300,” which seeks to provide electricity to 300 million Africans by 2030, the largest such effort in the world.
Despite these efforts, electricity consumers demand the dismissal of the personnel responsible for managing the national grid.
According to News Agency of Nigeria, NAN, on the day of the latest collapse, frustrated citizens voiced their concerns, urging the government to replace those overseeing the grid’s operations and hold them accountable for the continued failures.
In response, the Nigerian Electricity Regulatory Commission (NERC) has announced plans to hold a public hearing to investigate the immediate and remote causes of the recurring grid collapses.
NERC acknowledged that the increasing incidence of grid disturbances has been reversing many of the recent improvements in reducing Nigeria’s infrastructure deficit and improving grid stability.
Initial reports from NERC indicated that the grid collapse on October 19 was triggered by the explosion of the current transformer at the Jebba transmission station.
As part of its long-term strategy to improve grid management, the Nigerian government is also moving forward with plans to unbundle the System Operator (SO) function from the Transmission Company of Nigeria (TCN).
“Initial reports on the grid disturbance that occurred this morning indicate that today’s outage was triggered by an explosion of a current transformer at the Jebba transmission station at 8: 15 a.m., and associated cascade of power plants shutdown arising from the loss of load.
“However, efforts to restore supply have advanced with power significantly restored, as at 1 p.m., in 33 states and the FCT.
“In line with the provisions of the Electricity Act 2023, the unbundling of the System Operator function, ISO, out of Transmission Company of Nigeria Plc is ongoing with the expectation that an independent SO would engender more discipline in grid management and optimised investment in infrastructure.”
This unbundling is expected to promote more disciplined grid management and attract optimized investments in infrastructure under the newly independent SO. The government hopes that these measures will eventually stabilize Nigeria’s power supply and reduce the frequency of grid collapses.
