….Nigeria’s National Grid Collapses for Ninth Time in 2024
NIGERIA’s national grid has collapsed for the ninth time this year, exacerbating the country’s perennial power crisis. This recurring issue has significant implications for Nigeria’s economy, which has slipped from its position as Africa’s largest in 2022 to fourth place this year.
The Nigerian power sector has struggled historically, dating back to the 1980s. Over 80 million Nigerians lack access to reliable electricity, hindering economic growth and development. Successive governments have initiated reforms, but progress has been slow.
Nigeria’s power sector faces numerous challenges, including aging infrastructure, insufficient generation capacity, transmission and distribution losses, funding constraints, and corruption. These issues have resulted in frequent grid collapses, affecting businesses, households, and essential services.
Ogbeni Rauf Aregbesola, the former Minister of Interior and Osun State Governor, aptly summarized the role of government in business, saying, “In a liberal economy like ours, government has no business doing business, the responsibility of government is to provide enabling environment for businesses to thrive.” This philosophy emphasizes the importance of private sector participation and limited government intervention in business.
Encouraging private sector participation can have numerous benefits, including increased innovation, expertise, and financing. In fact, private sector involvement in infrastructure development can bring fresh ideas to improve access for disadvantaged groups and increase engagement with infrastructure development decision-making. Aregbesola’s economic philosophy serves as a valuable lesson for policymakers seeking to promote private sector engagement and foster inclusive infrastructure development.
In contrast, other African countries have made significant strides in ensuring stable electricity supply and higher power generation. South Africa, Egypt, Morocco, Ghana, and Rwanda serve as examples. These countries have achieved remarkable progress in their power sectors through strategic investments and policy reforms.
For instance, South Africa has invested heavily in its infrastructure, resulting in 98% access to electricity. Egypt has diversified its energy mix, incorporating renewable sources, and has an installed capacity of 50,000 MW. Morocco has implemented effective regulation and private sector participation, leading to 98% access to electricity.
Nigeria can learn valuable lessons from these success stories. By diversifying its energy sources, investing in infrastructure, strengthening regulation, encouraging private sector participation, and prioritizing electricity access, Nigeria can address its power sector challenges.
To address the country’s economic challenges, Nigeria needs to pursue bold reforms to reestablish macroeconomic stability and growth. This includes reducing trade barriers, improving trade facilitation, increasing access to reliable power supply, and improving the business environment.
The time for action is now. Nigeria’s economic growth and development depend on a reliable and efficient power supply.
This year’s grid collapse timeline is alarming:
– February 4: Grid capacity plummeted from 2,407 MW to 31 MW
– August 5: Grid collapse caused widespread power outages
– October: Three grid collapses occurred
– November 5: Ninth grid collapse, with power generation dropping to zero megawatts
Key stakeholders, including the Federal Government, National Electricity Regulatory Commission (NERC), Transmission Company of Nigeria (TCN), Distribution Companies (DisCos), and Generating Companies (GenCos), must collaborate and implement meaningful reforms.
Will Nigeria regain its position as Africa’s largest economy? Only time will tell.
Oluomo Wale Okiki
…writes from Osogbo Osun State
