UP NEPA, a common phrase sung by most Nigerians, including infants, is a display of excitement whenever electricity comes on in Nigeria. This phrase became so popular due to the country’s inconsistent power supply.
Electricity, the backbone of every working economy, is an integral aspect of Nigeria’s failed economy. Without electricity, a country’s economy dwindles and cannot function optimally. Nigeria’s power sector, which started generating electricity in 1896, has suffered prolonged issues year after year.
According to the Nigerian Electricity Regulatory Commission (NERC), Nigeria established its first electric utility company (the Nigerian Electricity Supply Company, NESCO) in 1929. These issues range from corruption to grid infrastructure issues affecting the full exploration of the country’s generation capacity to transmission and distribution losses (aggregate technical, commercial, and collection losses).
Nigeria produces electricity primarily from natural gas. According to Statista, natural gas is Nigeria’s most common electricity generation source, accounting for 70.5 per cent of the total electricity production. Nigeria has the most significant natural gas reserves in Africa and is among the world’s largest countries by proven reserves. Despite the country’s rich natural gas reserves, it still experiences major setbacks in energy generation.
Aside from natural gas, Nigeria also produces electricity from several sources, including renewables. The distribution percentage for the other electricity generation sources as of 2022 includes hydroelectric power, accounting for about 27.3 per cent, coal at 18 per cent, solar at 0.2 per cent, bioenergy at 0.1 per cent, and other fossil at 0.2 per cent.
Before 2013, the Nigerian Electricity Power Authority (NEPA) was responsible for generating, transmitting, and distributing electricity to the end-users. However, the country faced continuous energy crises and setbacks due to political and economic stability issues, corruption, and mismanagement in the power sector. These identified issues prompted the government to privatise the power sector.
In 2013, the Nigerian government fully privatised the electricity sector into the Power Holding Company of Nigeria (PHCN), which now has 11 Distribution Companies (DisCos), the Transmission Company of Nigeria (TCN, still chaired by the government), the Nigerian Bulk Electricity Trading (NBET), and six Generating Companies. NERC regulates all the different arms of the power sector and monitors performance standards for all electricity licensees.
In June 2023, President Bola Tinubu signed the Electricity Act 2023 into law to replace the outdated Electric Power Sector Reform Act 2005 (EPSRA 2005). The Electricity Act 2023 made provisions for states, institutions, and individuals to generate and distribute electricity from various sources, including renewable sources. It also provided states the authority to develop a framework for regulation.
With this Act, Nigeria targets a massive improvement in the energy sector, especially as the government unbundles the responsibility of energy generation to states. In addition, the government, private sector, and individuals are tasked with developing several strategies that incorporate emerging technologies to address the lingering challenges in the power sector.
Over the years, Nigeria’s electricity access journey has seen remarkable milestones, from privatisation facilitated by the EPSRA 2005 to incorporating states and expanding renewable energy generation sources, which the Electricity Act 2023 enabled.
However, a holistic approach to addressing the various issues the power sector poses is critical to resolving the age-long energy crisis. Strong political will, technical know-how, and continued drive must be present to ensure reliable, affordable, and universal energy access for all Nigerians.
In light of this, Griot Studios, a West African storyteller that creates and distributes multimedia and multiplatform content, produced a documentary that sheds light on Nigeria’s power sector.
In May, Griot Studios will release a documentary titled “UP NEPA,” which details the history of Nigeria’s power sector, its progress and challenges, and the way forward. It also tells stories of the impact of Nigeria’s power sector on the lives of Nigerians from different sectors.
This timely documentary addresses the current issues in the power sector and seeks to challenge stakeholders and every Nigerian to tackle these persistent challenges. Get ready to engage in the captivating, insightful, and educative film next month.
Click here to watch the trailer.