- Nigeria’s power sector stakeholders stressed the urgent need for decentralised energy solutions to improve reliability and reduce transmission losses.
- They also called for fair, transparent, and cost-reflective tariffs to strike a balance between commercial viability and social fairness.
Nigeria’s power sector stakeholders have again called for urgent reforms to improve efficiency and access to electricity. They emphasised the need for decentralised energy systems and fair, transparent tariffs to address persistent underinvestment and energy poverty.
At the 5th Annual Conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja, experts emphasised the importance of micro-grids, embedded generation, and off-grid systems. These models, they noted, can improve power reliability, reduce transmission losses, and expand access to rural communities.
Engr. Lamu Audu of the Nigerian Independent System Operator (NISO) explained that decentralised energy can boost efficiency and attract private investors. Moreover, he cited the 2023 Electricity Act, which allows states to establish local power markets, as a framework for collaboration between government and private companies.
However, Audu stressed that tariff reform is equally important. He warned that keeping electricity prices below cost discourages investment and weakens supply reliability. Therefore, tariffs must reflect actual costs while ensuring fairness for consumers.
PCAN Chairman, Obas Esiedesa, highlighted the sector’s deepening financial challenges. He pointed out that the Federal Government owes ₦6 trillion to power generation companies. Additionally, he highlighted gas shortages, currency instability, and ageing infrastructure as significant barriers to progress.
Meanwhile, Chief Princewill Okorie of the Electricity Consumer Protection Advocacy Centre criticised distribution companies for unfair billing and poor service delivery. He urged regulators and human rights organisations to enforce compliance with consumer protection laws and ensure greater transparency.
In conclusion, stakeholders agreed that Nigeria’s power sector needs a balanced and practical reform strategy. They identified decentralised energy, cost-reflective tariffs, and strong consumer protection as the key pillars for building a sustainable, inclusive, and reliable electricity market capable of driving national growth.