The level of frustration of Nigerians over worsening power supply problems lately is better imagined than experienced, following in particular, the collapse of several power plants in the country, coupled with constraints of procuring gas to run some others. Although the Minister of Power, Saleh Mamman “sincerely regret” the resultant power outage and the serious dislocation it is causing the average Nigerian, the Federal Government ought to be concerned that the present situation is not a one-off incident, but rather a continuation of disdainful services, occasioned by crass inefficiency that has attended the sector over many years. Mamman ought not to treat the matter with the usual run-of-the-mills excuses that his predecessors had always offered Nigerians. The grave situation now requires the minister to start thinking out of the box for a more enduring solution to power generation and distribution.
The frustration engendered by poor electricity supply in the country cannot be underestimated. The situation has adversely impacted on industrial productivity and worsened unemployment. Cost of production escalates when firms rely on self generation. Industries are folding up as a result of the dire situation. And domestically, many Nigerians are deprived of basic utilities such as fridges, fans, air conditioners and even catching up with the news on television. More annoying is that most Nigerians pay heavily for the epileptic power supply because the companies in charge have refused or failed to provide them with pre-paid meters that would relate their bills to services rendered.
Announcing the extensive power outage that Nigeria has been suffering for weeks, sometimes months, Mamman said 18 plants accounting for most of the electricity the country generates had faced operational problems. According to the Minister, eight plants suffered a “breakdown” while one underwent an annual maintenance. Seven other integrated power plants were experiencing gas constraints while one hydroelectric power plant has water management issue. These are enough to ground the nation but the problems did not start yesterday. It does seem that government has been content to manage the power situation rather than address it drastically, even for a country that has perpetually performed below par in terms of generating, transmitting and distributing electricity. For many years, Nigeria has managed to generate just about 4,000 megawatts for the whole country, consisting of more than 200 million people,
Lack of reliable power, according to the World Bank, is a significant constraint for citizens and businesses, resulting in yearly economic losses estimated at $26.2 billion (N10.1 trillion), which is equivalent to about two per cent of GDP. The World Bank says 85 million Nigerians, representing 43 per cent of the country’s population, do not have access to grid electricity. This makes Nigeria the country with the largest energy access deficit in the world.
Barely two months ago in February, the World Bank reportedly approved $600 million to support the Federal Government in improving the electricity distribution sector. So far, there is no impact of the funds on power supply, raising questions on whether or not it was judiciously spent. Last year alone, Nigerian manufacturers’ expenditure on alternative energy reportedly rose by 33 per cent from what was spent in 2019 according to data from the Manufacturers Association of Nigeria (MAN).
Although, self generation guarantees continuous business operation…