Nigeria’s electricity sector remains under intense scrutiny after nearly ₦10 trillion (about $6.5 billion) in public investments over the past 13 years failed to deliver reliable power to Africa’s most populous nation.
The huge spending, made through intervention funds, loans, payment guarantees and infrastructure projects, has done little to improve electricity generation, which continues to average just over 4,000 megawatts (MW)—far below the country’s estimated demand of more than 30,000MW.
The Federal Government acknowledged the sector’s long-standing challenges but said it has begun a comprehensive reform programme aimed at fixing structural problems that have hindered electricity supply for decades.
Minister of Power Joseph Tegbe said the administration is “resetting” the sector by introducing major reforms, including a nationwide technical audit of transmission infrastructure, grid stabilisation projects, expanded metering, regulatory coordination between federal and state authorities, and a long-term super grid programme.
According to Tegbe, the reforms are expected to strengthen the national grid, reduce technical losses, improve electricity access, restore investor confidence and increase operational capacity within the next two to three years.
The government also hopes to address the sector’s deep financial crisis. Electricity generation companies claim they are owed ₦6.2 trillion in unpaid obligations, although the Federal Government says verified liabilities stand at about ₦3.3 trillion after reconciliation.
To ease the debt burden, Abuja has introduced a ₦4 trillion Power Sector Debt Reduction Programme, raising funds through domestic bonds to settle outstanding payments and improve liquidity across the electricity market.
Industry stakeholders, however, argue that funding alone will not solve Nigeria’s electricity problems. Consumer advocates have called for greater transparency, reduced government interference and full privatisation of key electricity assets, while engineering experts insist that experienced technical professionals should lead the sector.
Despite the criticism, the government says recent improvements have pushed electricity generation to around 5,000MW in recent weeks and expressed confidence that ongoing reforms will produce visible improvements in electricity availability over the coming months.
Nigeria’s power sector remains one of the country’s biggest economic challenges, with businesses and households continuing to depend heavily on costly private generators due to unreliable grid electricity.
