Recent findings reveal that roughly N10 trillion in public funding, poured into Nigeria’s electricity sector over thirteen years, has failed to deliver meaningful improvements. Despite this massive expenditure, generation output remains stagnant, averaging around 4,500 megawatts compared to the 30,000 megawatts required by the nation. Minister of Power, Joseph Tegbe, acknowledges these long-standing structural issues and claims the government is now actively resetting the industry.
The government is currently embroiled in a dispute with Generation Companies (GenCos) regarding a N6.2 trillion debt. While the Association of Power Generation Companies insists this amount is owed due to unpaid subsidies, the Ministry of Finance claims a verification process reduced the liability to N3.3 trillion. Dr. Joy Ogaji, the Executive Director of the GenCos association, has questioned the transparency of this reduction, noting that even the reduced amount falls short of what is owed to gas suppliers.
To stabilize the market, the government has launched a multi-trillion naira debt reduction program using domestic bonds. Meanwhile, experts like Kunle Olubiyo of the Nigeria Consumer Protection Network suggest that inefficiencies and potential leakages in the sector contribute to the financial crisis. He advocates for full privatization to improve operational accountability. Similarly, Engr. Israel Abraham of the Chartered Institute of Power Engineers of Nigeria argues that the sector’s struggles stem from the appointment of non-technical leadership.
Minister Tegbe maintains that the government is committed to reform through a new sector-wide strategy. This plan includes conducting technical audits of the national transmission network, harmonizing federal and state regulations, and implementing a grid stabilization program. The administration claims that recent efforts are already beginning to show promise, with generation reaching 5,000 megawatts in recent weeks. The ministry remains focused on creating a financially sustainable environment that attracts private investment and boosts national productivity.
