HomeBusinessHow Nigeria Can End Its Power Crisis After Failed Privatisation

How Nigeria Can End Its Power Crisis After Failed Privatisation

Published on

Nigeria has been struggling with a power crisis for years, despite spending billions of dollars on subsidies for the electricity sector. The country faces frequent blackouts and poor service delivery, as the private investors who took over the generation and distribution companies in 2013 have failed to meet their obligations and expectations. The government has also been criticised for not providing a clear and consistent policy and regulatory framework for the sector.

Experts and analysts have suggested various ways to address the power crisis and improve the efficiency and sustainability of the sector. Some of these include:

  • Reviewing the privatisation contracts and holding the private operators accountable for their performance and commitments.
  • Empowering and equipping the Nigerian Electricity Regulatory Commission to enforce standards and rules and protect the interests of consumers and other stakeholders.
  • Increasing the use of renewable energy sources such as solar, wind and hydro to diversify the electricity generation mix and reduce the dependence on gas and diesel.
  • Upgrading and expanding the transmission and distribution networks and reducing the losses and theft of electricity along the value chain.
  • Promoting off-grid and mini-grid solutions to provide reliable and affordable power to rural and underserved areas that are not connected to the national grid.
  • Adjusting the electricity tariffs to reflect the true cost of service and eliminating the subsidies that create market distortions and inefficiencies.
  • Improving the governance and transparency of the sector and ensuring accountability and participation of all actors.

These measures, if implemented effectively, could transform the power sector and boost the economic and social development of Nigeria. The country has the potential to become a regional leader in the energy sector if it can overcome the current challenges and harness its abundant resources.

Source: The Guardian Nigeria

Latest articles

The £2 Million Question: What Really Happened at Harrods? How the Diezani Alison-Madueke trial became a masterclass in narrative inflation

KEY POINTS Headlines exaggerate Alison-Madueke’s alleged £2m Harrods spending and luxury perks; she didn’t...

BUA Foods Posts Sharp Profit Jump as Demand Lifts Sales

BUA Foods nearly doubled profit in 2025, as demand for staples and tight cost control lifted earnings and reinforced its position in Nigeria’s food sector.

Vitafoam Nigeria Posts Strong Start to 2026 on Demand

Vitafoam Nigeria began 2026 with higher revenue and profit, supported by domestic demand growth, lower finance costs and a stronger balance sheet despite weaker exports.

Linkage Assurance Revenue Rises 24 Percent on Performance

Linkage Assurance posted a 24 percent rise in insurance revenue in 2025, supported by underwriting growth, reinsurance optimisation and improved profitability across core operations.

More like this

The £2 Million Question: What Really Happened at Harrods? How the Diezani Alison-Madueke trial became a masterclass in narrative inflation

KEY POINTS Headlines exaggerate Alison-Madueke’s alleged £2m Harrods spending and luxury perks; she didn’t...

BUA Foods Posts Sharp Profit Jump as Demand Lifts Sales

BUA Foods nearly doubled profit in 2025, as demand for staples and tight cost control lifted earnings and reinforced its position in Nigeria’s food sector.

Vitafoam Nigeria Posts Strong Start to 2026 on Demand

Vitafoam Nigeria began 2026 with higher revenue and profit, supported by domestic demand growth, lower finance costs and a stronger balance sheet despite weaker exports.