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

Abuja Doctors Call Off Warning Strike After Reinstatement

The Abuja chapter of the Association of Resident Doctors has called off its warning strike after key demands, including reinstatement of sacked workers and partial salary payments, were met.

Five Children Die in Anambra After Eating Suspected Poisoned Meal

Five siblings died from suspected food poisoning in Anambra. Police investigate while the mother remains hospitalized

Labour Party Suspends Governor Alex Otti, Five Others Indefinitely

The Labour Party’s Abure-led faction has suspended Abia State Governor Alex Otti and five top members for alleged anti-party activities, ruling out any political merger ahead of 2027.

PSG Outclasses Arsenal to Reach Champions League Final

PSG secured a 3–1 aggregate win over Arsenal to reach their second Champions League final after a stellar home performance.

More like this

Abuja Doctors Call Off Warning Strike After Reinstatement

The Abuja chapter of the Association of Resident Doctors has called off its warning strike after key demands, including reinstatement of sacked workers and partial salary payments, were met.

Five Children Die in Anambra After Eating Suspected Poisoned Meal

Five siblings died from suspected food poisoning in Anambra. Police investigate while the mother remains hospitalized

Labour Party Suspends Governor Alex Otti, Five Others Indefinitely

The Labour Party’s Abure-led faction has suspended Abia State Governor Alex Otti and five top members for alleged anti-party activities, ruling out any political merger ahead of 2027.