By Ibrahim Nasiru
Nigeria’s recurring national grid collapses have become more than a technical challenge; they are increasingly threatening economic growth, business survival and job creation.
An economy cannot achieve sustainable development when electricity supply remains unreliable and businesses are forced to depend heavily on expensive alternative sources of power.
While successive administrations have relied largely on short-term interventions to address the country’s electricity challenges, former Vice President Atiku Abubakar’s proposed energy strategy advocates a fundamental restructuring of the sector. At the heart of the proposal is the need to move away from excessive dependence on a centralised national grid and empower regional and state-based electricity systems.
The consequences of the country’s unreliable power supply are felt across every sector of the economy. When the national grid collapses, small businesses such as barbershops, cold rooms, tailoring outlets and welding workshops are immediately affected.
For large manufacturers in cities such as Lagos, Kano and Aba, the situation is even more costly, as companies are compelled to spend huge sums on diesel-powered generators.
The rising cost of alternative electricity ultimately increases the cost of production, contributes to inflation, weakens business competitiveness and threatens jobs. Nigeria cannot realistically achieve rapid industrialisation if businesses continue to depend on generators as their primary source of electricity.
Breaking the Dependence on a Central Grid
For decades, Nigeria has operated a highly centralised electricity system in which power generated in one part of the country is transmitted over long distances to consumers elsewhere. This arrangement exposes the entire country to the consequences of failures along the transmission network.
Atiku’s proposed approach seeks to address this structural weakness by promoting regional energy zones. Through greater utilisation of the opportunities provided by the Electricity Act, state governments and private investors would be encouraged to develop power-generation facilities and distribution systems tailored to local needs.
Under such an arrangement, states and regions would have greater capacity to determine how best to meet their electricity demands.
Industrial clusters in Lagos, for instance, could take greater advantage of gas-fired power, while northern states could expand solar generation to support industries and communities. The closer electricity generation is to consumers, the lower the potential transmission losses and the less likely a technical fault in one location would disrupt electricity supply across the country.
Another major component of the proposed blueprint is the financial restructuring of the electricity distribution sector.
Many Distribution Companies, or DisCos, face serious financial and operational challenges, limiting their ability to invest in transformers, distribution lines and other critical infrastructure.
Atiku’s proposed open-market approach would seek to restructure undercapitalised companies and create room for credible international energy companies, institutional investors and private equity firms to inject the capital required to modernise the sector.
Greater private-sector participation, however, would have to be accompanied by strong regulatory oversight and consumer protection.
A major concern for electricity consumers is the continued reliance on estimated billing, under which customers can be charged for electricity without accurate measurement of their actual consumption.
The proposed blueprint advocates an accelerated nationwide metering programme designed to ensure that consumers pay according to the electricity they actually use.
Transparent tariffs, effective metering and stronger regulatory enforcement would be central to restoring public confidence in the electricity market. DisCos that fail to meet prescribed service standards would also face appropriate sanctions.
Diversifying Nigeria’s Energy Sources
The proposed strategy also places emphasis on diversifying Nigeria’s energy mix.
Natural gas, given Nigeria’s abundant reserves, would continue to play an important role in providing reliable electricity for industries and other major consumers. At the same time, the country would expand investments in renewable energy to ensure long-term sustainability.
The blueprint envisages large-scale solar projects across the northern region, greater exploitation of wind resources in suitable areas and the development of small hydroelectric projects in parts of the country with significant water resources.
Such diversification would reduce Nigeria’s dependence on a single source of electricity and provide greater resilience to disruptions.
A Structural Reform, Not a Temporary Fix
Nigeria’s power crisis requires more than emergency repairs whenever the national grid collapses. It requires a fundamental rethink of how electricity is generated, transmitted, distributed and financed.
Atiku Abubakar’s blueprint, as presented, seeks to achieve this by reducing excessive dependence on the central grid, encouraging state and regional electricity initiatives, attracting private capital, strengthening consumer protection and expanding renewable energy.
The central argument is that Nigeria cannot continue to commit enormous public resources to maintaining a system that repeatedly fails to deliver reliable electricity.
Rather than relying on temporary interventions, the country needs a power-sector structure that gives states, regions and private investors greater freedom to develop solutions suited to their specific needs.
Ultimately, the objective should be to create an electricity system capable of powering industries, supporting small businesses, creating jobs and improving the quality of life of Nigerians.
Chief Ibrahim Nasiru is a Public Affairs Analyst.
