- Nigeria’s power grid collapsed 11 times in 2024, disrupting businesses and livelihoods due to outdated infrastructure, poor maintenance, and underinvestment.
- Investigations by the EFCC revealed widespread corruption in power contracts, with substandard materials contributing to frequent equipment failures.
- Experts call for increased investment, infrastructure upgrades, and anti-corruption measures to stabilise Nigeria’s fragile power sector and ensure reliable electricity.
Nigeria’s power grid suffers from frequent blackouts, poor investments, and weak infrastructure. In 2024, the national grid collapsed 11 times, disrupting businesses and livelihoods and raising concerns about the sector’s stability.
The federal government cites ageing infrastructure, poor maintenance, underinvestment, and sabotage as critical reasons for the failures. Despite several interventions, the grid remains fragile.
Kunle Olubiyo, president of the Nigeria Consumer Protection Network, spoke to BusinessDay about the sector’s long-standing issues. “We rely on 19th-century technology in the 21st century,” he said. He stressed that without regular maintenance, the grid will continue to fail.
Olubiyo also emphasised the need to recalibrate equipment, pointing out that “meters should be replaced every four to five years, but that doesn’t happen.” He proposed a decentralised grid, allowing states to manage hybrid systems and improve resilience.
He criticised the insufficient budget allocation for the power sector and questioned how the government uses foreign loans. Nigeria’s power sector faces an N5.5 trillion shortfall, N2.5 trillion in debts to generation companies, and an N3 trillion tariff gap. Meanwhile, the government has allocated only N400 billion, which Olubiyo considers inadequate.
Olubiyo highlighted Nigeria’s severe energy poverty, with peak generation at just 5,800 megawatts, far below the United Nations benchmark of 1,000 MW per million people. He urged the government to invest heavily in infrastructure and prioritise maintenance to achieve reliable power.
Ola Olukoyede, chairman of the Economic and Financial Crimes Commission (EFCC), connected the country’s power failures to rampant corruption. The EFCC’s investigations uncovered widespread fraud in power contracts. “Contracts awarded for power equipment often involve substandard materials, causing frequent failures,” Olukoyede said.
He added that the commission’s ongoing investigations show deep-rooted corruption that hampers efforts to improve Nigeria’s electricity supply. “If you see the cases we’re investigating, it will bring you to tears,” Olukoyede said.
Lanre Elatuyi, a power sector analyst, agreed that the sector is fragile and needs urgent attention. He urged the government to address weak infrastructure across the entire value chain, from generation to distribution. “We need to focus on making the grid more reliable, not just installing assets anywhere,” Elatuyi said.
Elatuyi pointed out that DisCos (distribution companies) lack the financial resources and long-term financing needed to invest in infrastructure. He also mentioned a liquidity crisis in the Nigerian Electricity Supply Industry (NESI) as government subsidies dry up, leaving the sector cash-strapped.
Elatuyi warned investors they would not bring in more capital without a clear path to cost recovery. He called for reforms to unlock liquidity and attract new investment into the sector.
As Nigeria grapples with its electricity crisis, experts call for reforms, increased investment, and more robust anti-corruption measures to stabilise the power sector and ensure reliable supply.