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

US Mission Warns Nigerians Against Visa Fraud

The US Mission in Nigeria renews its visa fraud warning, saying fraudulent applications and overstays will trigger stricter scrutiny for future applicants.

Dangote Signs $400 Million XCMG Deal to Expand Refinery

Dangote signs a $400 million equipment deal with XCMG to accelerate refinery expansion and boost petrochemical and fertilizer production capacity in Nigeria.

EFCC Questions El-Rufai Over Alleged N432 Billion Misconduct

EFCC questions former Kaduna governor Nasir el-Rufai over alleged N432 billion misconduct as Federal Government files cybercrime charges in Abuja.

Flutterwave CEO Backs Terra Industries in $22 Million Funding

Terra Industries funding hits $34 million as Flutterwave CEO Olugbenga Agboola backs the Nigerian defense tech startup’s African and Saudi expansion plans.

More like this

US Mission Warns Nigerians Against Visa Fraud

The US Mission in Nigeria renews its visa fraud warning, saying fraudulent applications and overstays will trigger stricter scrutiny for future applicants.

Dangote Signs $400 Million XCMG Deal to Expand Refinery

Dangote signs a $400 million equipment deal with XCMG to accelerate refinery expansion and boost petrochemical and fertilizer production capacity in Nigeria.

EFCC Questions El-Rufai Over Alleged N432 Billion Misconduct

EFCC questions former Kaduna governor Nasir el-Rufai over alleged N432 billion misconduct as Federal Government files cybercrime charges in Abuja.