Eleven years after the privatisation of the power sector in November 2013, Nigeria continues to face significant challenges. The past year saw several key issues affecting the electricity supply industry:
Major Challenges in 2024
- National Grid Collapses: There were at least twelve national grid collapses throughout the year, causing widespread blackouts.
- Electricity Tariff Hikes: In April 2024, electricity tariffs for Band A customers increased by over 200%, from ₦66 to ₦225 per kilowatt-hour. This hike, meant for customers with at least 20 hours of daily power supply, faced strong opposition but was not reversed.
- Vandalisation of TCN Facilities: Persistent vandalism of Transmission Company of Nigeria (TCN) infrastructure contributed to the frequent grid collapses. Vandals targeted facilities in Rivers and Bayelsa states, destroying key transmission lines and components.
- Electricity Generation Issues: Despite promises to achieve 6,000 MW of electricity generation by the end of December 2024, the target was missed. The generation remained below 5,000 MW for over 200 million people.
Specific Incidents
- Darkness in Northern Nigeria: Nineteen states in northern Nigeria, along with parts of Rivers and Bayelsa states, experienced prolonged power outages due to vandalism.
- Minister’s Statement: Minister of Power, Adebayo Adelabu, blamed widespread vandalism for the failure to meet the 6,000 MW target.
Optimism for the Future
Despite these challenges, there were positive developments:
- Liberalisation of the Sector: The 2023 Electricity Act granted oversight functions to states, allowing greater local control over electricity operations. By the end of December 2024, states such as Ogun, Lagos, Enugu, Kogi, Ondo, Ekiti, Oyo, and Imo had received regulatory oversight powers from the Nigerian National Electricity Regulatory Commission (NERC).
Economic Outlook
Looking ahead to 2025, the Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that the electricity tariff hike could unsettle expectations in the new year.
Overall, while 2024 was marked by significant challenges, there are signs of progress and optimism for the future of Nigeria’s power sector.
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