Ponzi schemes are known to take people’s investments, be it in hope or finances or, as in most cases, both. The country has been plagued with a lot of these ventures over the years. Even though these schemes always end up crashing, one could say that desperation is what pushes people to still invest in the next new one they hear about. However, one of these ventures’ most common forms has become so normal that it is often not categorised as a Ponzi scheme; the electricity Ponzi scheme.
In fact, you could argue that the entire Nigerian electricity sector is one big scam. Over the years, political leaders have made promises of changing the electricity sector for the better. They promise to ensure increased electricity supply hours, quick fixing of electrical faults, the purchase of more infrastructure, and even a general increase in energy access. As we all know, however, this is hardly ever the case. By the time they get into power, the excuses start piling up, and these promises are forgotten. This is where it all begins, with the people investing their votes.
The electricity Ponzi scheme in Nigeria keeps getting worse because the electricity sector deteriorates daily. For a very long time now, there has not been any noticeable increase in energy access. If anything, the reverse has been recorded. People now pay more for the reduced number of hours of electricity supply. Electrical faults are hardly ever fixed, leaving electricity consumers in darkness for prolonged periods of time. In the case of electrical infrastructure, communities often end up contributing money to buy equipment such as transformers and cables, and these frequently end up being claimed by the Distribution Companies that should have provided them in the first place.
In addition to all these, the federal government plans to remove the entire subsidy on electricity by 2021, which means that consumers will end up paying even more than they already do for electricity supply that probably will not improve. These issues and more, such as the whole privatisation saga, makes the electricity Ponzi scheme in Nigeria one of the most draining.