In an exclusive interview with The Electricity Hub, Mr Magnus Eminue, an energy policy analyst at Nextier, shed light on the persistent role of political influence in Nigeria’s power sector, describing it as a longstanding obstacle to the country’s energy development.
According to Mr Eminue, politics’ influence on the awarding and managing of power sector contracts has undermined efforts to build a reliable electricity supply. From the days of the National Electric Power Authority (NEPA) to the post-privatisation era, political considerations have continued to dictate contract allocations, policy decisions, and project execution.
“Political patronage remains deeply entrenched in the system. Many contracts are still awarded based on connections rather than capacity, which is a major reason why projects stall or fail,” Mr Eminue said.
A History of Political Interference
The roots of political involvement in Nigeria’s power sector dates back to the 1970s, when NEPA monopolised electricity services. Successive administrations maintained a tight grip on the industry, using it as a tool for political leverage.
As electricity demand surged during the 1990s and early 2000s, vested political interests repeatedly undermined the government’s efforts to improve generation and distribution. Eminue pointed out that these interests often inflated project costs and hindered reforms to professionalise the sector.
One pivotal moment came in 2005 with the enactment of the Electric Power Sector Reform Act (EPSRA), which aimed to liberalise the industry and attract private investment. While the law set the foundation for privatisation, Mr Eminue noted that political interference persisted, often leading to contracts awarded based on political affiliations rather than technical merit.
Privatisation: A Missed Opportunity?
The 2013 privatisation of the Power Holding Company of Nigeria (PHCN) was designed to mark a turning point in the power sector. Transferring generation and distribution assets to private investors aimed to reduce government involvement and increase efficiency.
However, the process was marred by allegations of political favouritism. Mr Eminue explained that several companies that won bids were linked to political elites and could not deliver on their mandates.
“Privatisation was not entirely transparent. Some of the winners had more political clout than technical expertise, and the result is what we see today — underperforming DisCos and Gencos,” he said.
The Role of Patronage in Today’s Contracts
Political influence remains a defining feature of contract awards across the sector. Federal and state-level actors often secure contracts for allies or regional stakeholders, regardless of technical or financial capability.
Mr Eminue states this patronage system leads to stalled or poorly executed projects, as many contractors lack the expertise to complete complex infrastructure work. He also pointed out that critical agencies like the Nigerian Electricity Regulatory Commission (NERC) and the Transmission Company of Nigeria (TCN) are not immune from political pressure.
Tariff setting, for instance, is frequently manipulated for political gain, especially during elections.
Implications for Service Delivery
The consequences of political interference are far-reaching. Mr Eminue noted that many power projects suffer chronic delays or are abandoned altogether, often with little accountability. Several power stations and transmission projects have remained incomplete for years due to contractual disputes and political entanglements.
The lack of transparency in contract awards also fuels corruption, with inflated contracts used to siphon funds for political campaigns or personal gain. This leaves critical infrastructure underfunded and contributes to the persistent electricity deficit across the country.
A Call for Reform
While acknowledging that politics cannot be entirely separated from the public sector, Mr Eminue stressed the need for stronger institutions and greater transparency to curb the negative impact of political influence.
He recommended the establishment of performance-based benchmarks in contract awards alongside penalties for non-performance. Independent regulators must also be empowered to operate free from political pressure.
“We need to create a system where performance, not political loyalty, determines who gets a contract,” he said. “That’s the only way to build a credible and functional power sector.”
Mr Eminue also called for civil society organisations to be involved in monitoring contract processes, noting that greater public oversight could help improve accountability.
Conclusion
Political interference in Nigeria’s power sector remains a critical impediment to achieving a stable and efficient electricity supply. Despite reforms and privatisation efforts, the industry grapples with misallocated contracts, underperformance, and stalled projects driven by political considerations.
As Nigeria strives to meet its energy goals, Mr Eminue believes a deliberate push to depoliticise contract processes and strengthen regulatory institutions is essential.
“Until we remove politics from contracts, the sector will continue to underdeliver. The potential is there — we need the will to unlock it,” he concluded.