According to the World Bank, the Nigerian economy incurs an annual loss of $29 billion due to its unreliable power supply, which results in widespread electricity outages throughout the nation. The reasons behind the failures of Nigeria's grid are multifaceted.
WHAT CONTRIBUTES TO BLACKOUTS?
The crisis is primarily rooted in Nigeria's outdated power infrastructure. Many transmission lines and substations are over 40 years old and are frequently subject to breakdowns.
The Transmission Company of Nigeria (TCN), which is government-owned, reports an average loss of 7.79 megawatts for every 100 megawatts introduced into the grid.
Years of insufficient investment have rendered the grid vulnerable to disruptions during unexpected demand spikes, as noted by Lagos-based energy attorney Ayodele Oni.
Additionally, vandalism and assaults on transmission facilities, particularly in northern Nigeria, exacerbate the situation. Over the past two years, TCN has documented 108 incidents of attacks on its infrastructure.
Another significant issue is that Nigeria, with a population exceeding 200 million, generates and distributes only one-third of its total installed capacity of 13,500 megawatts.
Despite possessing the seventh-largest gas reserves globally, Nigeria produces less than 10% of the electricity generated by South Africa, which has a population only a third as large.
More than 75% of Nigeria's electricity is derived from gas-fired power plants, mainly situated in the southern part of the country, while the remainder is produced by hydroelectric facilities in the north.
Power generation companies supply electricity to the national grid, which is managed by the federal government. This electricity is then distributed to consumers through 11 regional distribution companies.
IS THERE A FIX?
Over ten years after the privatization of Nigeria's electricity sector, there has been minimal improvement in the grid's performance.
However, last year, the government permitted its 36 states to generate and transmit their own electricity. States such as Lagos, the country's commercial center, along with five others, have already started to establish independent power markets.
Additionally, the government is collaborating with the World Bank to construct 1,000 mini solar grids aimed at enhancing power access in rural regions.
“A more resilient approach is needed in Nigeria to incorporate decentralized energy sources, such as solar power paired with storage, to complement the national grid,” stated Sherisse Alexander, chief business officer at independent power producer WATT Renewable Corporation. -Reuters