Index to Nigerian Newspapers

The Association of Alternative Power Suppliers of Nigeria has expressed the readiness to develop mini grids to augment electricity generation and supply in the country. The Nigerian Electricity Regulatory Commission recently unveiled the Draft Mini-Grid Regulation 2016, saying mini grids could be used as a bridge technology to accelerate electrification activities. NERC said the mini-grid regulation was specifically designed to accelerate electrification in areas without any existing distribution grid and areas with an existing but poorly electrified or non-functional distribution grid, especially but not limited to rural areas. The President, AAPSN and Managing Director, AOS Orwell, Mr. Femi Omotayo, said members of the association would provide alternative power mainly through embedded generation projects to fill the supply gap in the power sector. According to Abiola-Odunowo, the association’s plan is to find 10 companies in each local government that can generate one megawatt to start with. He said the mini-grid regulation would afford alternative power producers the opportunity to go to the consumers directly.

Nigeria experienced its first national blackout this year after a grid collapse at 11:21 a.m., causing all 20 power plants, except Ibom Power, to be offline by 11:51 a.m. Abuja Electricity Distribution Company (AEDC) confirmed the incident, stating that the power outage was due to a system failure from the national grid. The Transmission Company of Nigeria (TCN) stated that the grid experienced a partial disturbance due to gas constraints at its Ibom power station, feeding Eket, Ekim, Itu & Uyo transmission substations. Low power generation has persisted in the country since January 2024, exacerbating daily generation due to the lingering gas constraint. The outage made it the 150th time the country has recorded a grid collapse since 2013. Reasons for the collapses vary, but include outdated infrastructure, vegetation growing along grid lines, vandalism of the grid, and a shortage of gas.

The Nigerian electricity market is facing a crisis due to debt, weak corporate governance structure, poor tariff system, weak regulatory enforcement and lack of respect for extant regulations. This has led to the takeover of the assets of Ibadan Electricity Distribution Company (IBEDC) by the Asset Management Corporation of Nigeria (AMCON) and the sacking of most key management staff. The debt owed to banks by the power sector stands at about N819.97 billion as of last year, and the National Bureau of Statistics (NBS) has put non-performing loans (NPLs) on the rise. Ibom Power has acquired a licence for 685MW, but is facing challenges due to the inability of its host DisCo to take the quantum of power it generates. The Akwa Ibom State government has taken up the responsibility of TCN by building 132/33KVA and 260MVA at Ikam, which Vice President Yemi Osinbajo commissioned in 2020.

Nigeria, the largest growing telecommunications market globally, faces poor electricity to compete with world powers. Many electrical gadgets, including setup boxes, are becoming irreparable due to the issue of epileptic power supplies. Technicians are advised to buy new decoders to address the issue, but many are unable to repair them. Industry watcher Onome Atufe suggests that the issue may stem from bringing in goods that cannot be managed or sabotaged. The Buhari-led administration has assured citizens of hope for electricity. Group Managing Director of Omatek Ventures Plc, Florence Seriki, believes that leveraging solar power solutions could help address the power vacuum in Nigeria. The company has expanded its investment in modern solar factories to provide assistance to ensure the federal government delivers an enduring power supply to Nigerians. Seriki demonstrated that a 50KVA three-phase off-grid solar solution will provide 24/7 power, resulting in an 85% reduction in power consumption for factories, banks, telecom firms, the government, and other organizations requiring big solar power installations.

Residents of Ajegunle, Hospital Road, and Igboji communities in Ogun State have been experiencing erratic power supply since February 2023, affecting businesses and leading to nearly closures. The Ibadan Electricity Distribution Company spokesperson, Busolami Tunwase, stated that the low supply to the communities is due to the Transmission Company of Nigeria's low supply. Community leaders and House of Assembly member Ademola Adeniran have not yielded any positive results.

The Federal Government has ordered power distribution companies to deploy customer engagement platforms within the next three months, beginning from September 1, 2023. The directive meant the Discos must install the facilities before January 2024. It gave the order through the Nigerian Electricity Regulatory Commission, and explained that the directive became vital due to the failure of Discos in resolving the complaints of power users. The directive was contained in a document from NERC, with order number: NERC/2023/006, obtained by The PUNCH in Abuja on Thursday, and titled, ‘Order on deployment of customer engagement platforms’.

Nigeria's restructuring of the country and devolving power to sub-nationals or states is not the solution to all problems. The recent blackouts and power outages have highlighted the need for state governments to step up their game in regulating electricity generation, transmission, and distribution. The 1999 constitution and the new Electricity Act 2023 have allowed states to regulate electricity markets, creating two national and state markets. However, states still struggle with the electricity problem due to lack of political will, lack of qualified human resources, long-term policy implementation, and inconsistencies.States need more investment in technology and network infrastructure for electrification projects and to attract potential investors. Enugu state has taken the lead in enacting its state policy and law, setting up its regulatory body, and is on the verge of issuing its first licenses to private investors. The federal government still has a crucial role in the power sector to drive social and economic development on a national scale. It must create the right ecosystem to spur investment in electricity infrastructure, promote renewable energy sources, and create partnerships with international organizations and investors.