• Seven million meters shortfall being tackled, says minister
To end the frequent collapse of the national grid, which it described as “old and weak”, the Federal Government has unbundled and offered it for privatisation.
Minister of Power Adebayo Adelabu stated this yesterday while reviewing the government’s activities in the electricity sector.
He spoke during his appearance at the 2025 Ministerial Press Briefing Series at the Radio House in Abuja.
The programme was moderated by Minister of Information and National Orientation Mohammed Idris.
Adelabu explained that there is a seven million consumer meter shortfall, which the government is bridging with a planned programme.
He also said no fewer than 80 million Nigerians out of an estimated 240 million population lack access to electricity.
According to him, the government has opened talks with some investors who have indicated interest in the operation of some aspects of the grid before the end of the year.
He said: “We have various offers from private investors. The national grid is owned 100 per cent by the government.
“But, I can tell you, with other ministries competing for funds, we cannot fund the national grid alone.
“It is an expanded national grid. It is too large and there are some dedicated lines in which some private investors have expressed interest.”
Adelabu believes private sector participation in grid management would not be difficult with the operation of the Nigerian Independent System Operator (NISO).
The minister said: “Let them finance construction of new lines, construction of new substations and introduction of new transformers.
“They will be able to benefit from the proceeds of the willing charges from the Distribution Companies (DisCos) and the Generation Companies (GenCos).”
He assured that the government will settle N2 trillion out of the N4 trillion indebtedness to GenCos before the end of the year.
He said he was already discussing with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who has pledged to settle the debt with budgetary allocation and guaranteed instruments.
On how the debt was accumulated, he said the government subsidises 85 per cent of the N170 per kilowatt of electricity consumed by Nigerians on Band B to E.
The minister described half of the N4 trillion as legacy debts from the previous administration.
According to him, the 11 DisCos are not charging cost-reflective tariffs, a development he noted has restricted investment in the sector.
He said the local meter manufacturers lack the capacity for holistic production, other than assembling the parts.
“The rate at which we want to move in meter acquisition and procurement, they don’t have the capacity. What we have, 90 per cent of them are assemblages.
“They assemble completely knock-down parts, CKDs, or semi-knock-down parts, SKDs. They are not full manufacturers. Local content ranges from 10 to 40 per cent. So, we rely more on importation plus local supply.”
He said the launch of the Presidential Metering Initiative is backed by a N700 billion allocation, adding that the government targets the acquisition of 1.1 million meters by year-end.
“The procurement process has started, I can assure you, and we have a plan for two million meters annually for the next five years, and the procurement process has started.
“If we add two million meters annually, it’s 10 million meters, plus 1.1 for this year, that’s 11.1 million meters.”
He said the arrangement will cut off the national meter gap of about six to seven million through the World Bank-funded Distribution Sector Recovery Programme (DSTREP).
Over 3.2 million meters, he said, will be procured and installed alongside data management solutions for DisCo optimisation.
“Today, we have completed the procuring process of DSTREP, 75,000 meters have already arrived this month, and we expect an additional 200,000 meters in May.
“Before the end of this year, 1.3 million meters will come from the World Bank-funded DSTREP programme.”
The minister added that power generation peaked at 6,003 megawatts and evacuation at 5,801 megawatts last month.
The scale of national grid
The minister described the transmission line as a wide network of electrical installations across the length and breadth of the country, spanning over one million square meters of land mass.
He said: “The Nigerian transmission network currently comprises 92 lines of 330 kV covering 9,504 kilometres. Our 141 lines of 132 kV spanning 8,558 kilometres are interconnected through our 57 existing 33, 330, 132, 33 kV and 186, 132, 33 kv substations.
“That is over 250 substations across the country. This backbone infrastructure is supported by 91 power transformers of 330 kV voltage level with 14,978 MVA capacity and 392 transformers of 132, 33 kV providing 19,238 MVA capacity. Do you know what 1MVA means? It means two 500 kV transformers combined.
“That is 1MVA, and we are talking of almost 35,000 MVA capacity. So, it’s a huge grid to cover over 200 million people.”
He insisted that its maintenance and expansion history have been poor. “So, it is old,” he said.
Although it was not immediately clear why the grid collapsed, Abuja Electricity Distribution Company (AEDC) notified its customers that a system disturbance occurred at 34am.
The energy distributor said the restoration was ongoing.
The national grid didn’t collapse yesterday as widely reported.
The X account @NationalGridNg, known for providing real-time updates on national grid, said the reports were false.
Reports had circulated that the national grid experienced its first collapse of the year yesterday but this has now been confirmed to be false.
The tweet reads: “KINDLY IGNORE RUMOUR OF A GRID COLLAPSE TODAY. IT IS FALSE!”
Also dismissing the widespread reports as baseless lies, the Transmission Company of Nigeria, TCN, yesterday said the nation’s grid did not experience any collapse yesterday.
TCN’s Public Affairs General Manager, Ndidi Mbah, in a statement said “Earlier today (Saturday), at about 13:41Hrs, the Osogbo – Ihovour line tripped, followed by the tripping of the Benin – Omotosho line. These consequently affected bulk supply to the Lagos axis alone.
“It is important to clarify that at about 13:00 Hrs, today, just before the tripping, total generation on the grid was 4,335.63MW.”
TCN said after the tripping, however, generation was 2,573.23MW, showing clearly that the grid did not experience a collapse.
According to TCN, the transmission line tripping affected Egbin, Olorunsogo, Omotoso, Geregu, and Paras, but these have all been restored except for the Benin – Omotoso 330kV line whose restoration is ongoing.
The statement said “as TCN continues to work hard to put in place a robust transmission grid, in spite of prevailing challenges, it is imperative that we understand the negative impact of deliberately misinforming the public and the value of disseminating true and verifiable facts.”
The activation of the Electricity Act (EA) brightened the power sector but incessant grid collapse and missed generation target hobbled the sector. JOHN OFIKHENUA writes.
Based on the 2023 Electricity Act (EA) which empowered states to generate, transmit and distribute electricity, about eight states sought and secured regulatory autonomy from Nigerian Electricity Regulatory Commission (NERC). It became a major milestone in the Nigerian Electricity Supply Industry (NESI) in 2024 as it culminated in the granting of autonomy to Enugu, Ekiti, Oyo, Ondo, Kogi, Edo, Imo and Lagos States for regulatory oversight. This mandated the existing distribution companies to within 60 days incorporate new sub- companies for the interstate energy supply.
This has gone a long way to redefine the industry as several states, companies, and individuals are exacting themselves to enhance the national grid. While some of the aforementioned states have activated their state regulatory commissions some have incorporated sub companies. However, the enforcement and regulation of technical standards in the industry has become a major concern. This is so because as the states are in a hurry to make and enforce their own technical standards in their franchise areas, the Nigerian Electricity Management Services Agency (NEMSA) is afraid that it would be inimical to have different technical standards in a country. The agency is of the view that different standards might result in incidents, especially in border areas, where there are interstate connections. They foresaw calamity emanating for the adoption of different frequency codes in the same country.
Sharing the view in Abuja recently, the Senate Committee Chairman, Senator Enyinnaya Abaribe vowed to amend the EA 2023 to explicitly barred states for enforcing technical standards. Vowing to stop states from enforcing the standards, he insisted that the exclusive list must supercede the concurrent one.His words: His words: “In the new law that they passed in 2023, there is nowhere in that law that gives the states the right to enforce standards of our electrical equipment done by NEMSA. “So, I have discussed this with the legal unit and decided to amend the 2023 law to make it explicit that for safety, Nigeria must have one standard rather than multiple standards.
“We have to ensure that people do not mischievously set up their own standards. We will make sure we make it very explicit and as you know, a federal law, supercedes the state law.”
From the generation end, Lagos State has rolled up its sleeves to generate 4000MW. Upon the attainment, the state would cease depending on the national grid.
Part of the highlights of 2024 was the Minister of Power Chief Adebayo Adelabu target of generating 6,000MW in the year under review. Unfortunately, the daily energy production in the industry remained an average of 4,000MW peak generation and about 3000MW off-peak generation. According to Adelabu, the NESI was expected to meet the target with off-grid energy production in order to relieve the national grid.
Despite the industry’s failure to meet the target, the national grid collapsed for about 13 times in the year under review. With this, the decision of adding to energy generation became unnecessary. Any additional power generation would mean overloading the weak grid.
As the incessant grid collapse became embarrassing to the country, Adelabu raised a six-man committee to look into the cause of the menace. Findings of the committee, however, blamed it on vandalization of electricity assets and installations. It also attributed the cause to obsolete and weak transmission lines, which have been overdue for replacement. He concluded the request for funding in the 2024 budget to fix the grid.
The Transmission Company of Nigeria (TCN) took the bulk of the blame of the reoccurring grid collapse. It was the year the northern part of the country was plunged into darkness for weeks owing to vandalism of the transmission assets in the region. The Federal Government reportedly spent N9 billion on restoration of vandalised transmission assets in northern Nigeria. The attacks were mostly on the Shiroro – Kaduna 330kV lines 1&2 were colossal. Each of the affected lines is capable of wheeling 600MW to the North West.
Similarly, what plunged virtually all the northern states into darkness was the 330kV Ugwuaji – Apir transmission lines that was out of service on October 21st, 2024, due to the vandalism of the 330kV double circuit transmission lines 1&2. But the Line 1 was repaired and restored earlier on October 30, 2024, according to TCN.
To its credit, however, the TCN commissioned a 75MVA 132/66/32 KV power transformer at the Oji River Substation in May 2024, increasing the substation’s capacity to 165MVA and bolstering bulk power supply in the region
In the year under review, NERC renewed the license of the Nigerian Bulk Electricity Trading Company (NBET) for another three years as its 10-year license expired in November 2024.
The industry recorded the inauguration of a new management team of the Niger Delta Power Holding Company NDPHC on August 16. Upon resumption, the team, under the leadership of Engr. Jennifer Adighije vowed to optimize the company’s assets. In fulfilment of the pledge, the NDPHC has moved to recoup its $100billion assets in the Transmission Company of Nigeria (TCN).
The team made history in the year under review with the record of the recovery of debt from cross-border bilateral client CEET, Togo in the sum $4 million for invoice payment for invoice payment for energy sales in November 2023. Besides, in 2024, the NDPHC concluded plans for the evacuation of stranded capacity to bilateral and eligible customers.
The year 2024 would be remembered for the upward review of electricity tariffs from N68 per kWh to N225 kWh for the band A customers. The measure was to reduce the burden of subsidy payment on the government. In addition, it was designed to provide 20 to 24 hours supply to the premium customers. The increase sparked protests from customers including the Nigeria Labour Congress and the Trade Union Congress.
The government sought the understanding of the citizenry, stressing the cost of privately generated electricity was still far more expensive than that of Band A customers.
In 2024, Adelabu and other stakeholders also sought the withdrawal of DisCos licenses over non-performance to no avail. While some Civil Society Organizations insisted there must be a recapitalization of the DisCos to enhance their performance, some were of the view that the government activate its equity participation in the energy distributors firms.
The Transmission Company of Nigeria (TCN) confirmed the development on its Independent System Operator (ISO) website.
However, the Load Distribution Profile section of the website was inaccessible, making it impossible to ascertain the energy allocated to electricity Distribution Companies (DisCos).
Efforts to obtain clarification from the TCN’s Public Affairs General Manager, Ndidi Mbah, were unsuccessful as she did not respond to calls from The Nation.
The rapidity of power outages across the country in recent times has continued to have rippled negative effects on the economy with most businesses not just counting losses but relying on off-grid fuel to drive operations at astronomical cost all amounting to a staggering $48billion annually, reports Ibrahim Apekhade Yusuf
Incessant power cuts, especially the kind experienced nationwide in recent times, does not bode well for the economy already struggling with legions of problems.
This is the summary of the damning verdict according to the Africa Trade Barometer report by the Standard Bank.
The report states that Nigeria’s persistent power challenges are costing the economy an estimated $26 billion annually.
The report also revealed that businesses in the country spend around $22 billion yearly on off-grid fuel to offset the impact of unreliable electricity, further driving up operational costs.
It read: “In Nigeria, surveyed businesses must contend with a national grid that frequently collapses as it fails to meet a daily peak demand which is nearly four times its generation capacity. Economic losses arising from Nigeria’s electricity shortages are estimated to be USD 26 billion annually, without accounting for spending on fuel for off-grid generators, which is estimated to be a further USD22 billion.”
Electricity supply was identified as a critical barrier to business operations in Nigeria and across other African markets.
The report highlighted the impact of power outages, explaining that blackouts disrupt production, compromise the quality of temperature-sensitive goods, disrupt water supplies, and affect telecommunications infrastructure critical for payment systems. These disruptions result in reduced sales and income for businesses.
“Across the 10 African markets, power supply infrastructure remains the most severe obstacle to surveyed businesses’ operations. It is reported as one of the most poorly perceived infrastructural attributes as well as the one presenting the most severe obstacle to business operations.
“Blackouts cause a downtime of production, risk the quality of goods that require controlled environments, impact water supply, and affect telecommunications infrastructure which businesses may rely on for payments. The result is reduced sales and income,” it noted.
To address these challenges, the report emphasised the need for a diversified energy mix to reduce dependence on the national grid. It also called for policy interventions to stabilise electricity generation and attract investment into renewable energy solutions.
Timeline of national grid collapse
The national grid may have collapsed for a record 160 times in the last decade according to data sourced from experts with institutional memory of the nation’s power assets.
For instance, the Nigerian Electricity Regulatory Commission, showed that the grid collapsed approximately 93 times during the eight-year rule of Buhari, from June 2015 to May 2023.
The national power grid, according to NERC, is a vast network of electrical transmission lines that link power stations to end-use customers across the country and it is designed to function within specific stability boundaries, including voltage (330kV ± 5.0 per cent) and frequency (50Hz ± 0.5 per cent).
“Any deviation from these stability ranges can result in decreased power quality and, in severe cases, cause widespread power outages ranging from a partial collapse of a section of the grid to a full system collapse.
“When the electricity demand is higher than the supply, the grid frequency drops. Conversely, if supply surpasses demand, the frequency increases. In reaction to the grid operating at a frequency outside of the normal operation range (especially when the frequency is too low), safety settings on generation units may cause the units to shut down.
“This often exacerbates the frequency imbalance on the grid thereby causing more generation units to shut down resulting in a full or partial system collapse,” the regulator explained.
Lending credence to the foregoing, the Association of Power Generating Companies (APGC) recently said that the national grid has collapsed 162 times in the last 11 years.
On October 19, the national grid collapsed for the eighth time in 2024, with the first recorded on February 4.
More worrisome is the fact that the grid also collapsed for the second time in three days, leading to blackouts in several parts of the country.
A check on the Nigerian System Operator’s portal (niggrid.org) showed that power generation dropped to zero megawatts at 11:30 a.m., affecting generation companies across the country.
Some electricity distribution companies corroborated this on their social media platforms.
“Please be informed that we experienced a system outage today 07 November 2024 at 11:29Hrs affecting supply within our network,” the Ikeja Electricity Distribution Company (EKEDC) serving parts of Lagos wrote on X.
“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us.”
The Eko Electricity Distribution Company (EKEDP) also informed its customers of the “potential system failure”.
“Kindly be informed that at precisely 11.29 hours today, 7th November 2024, we experienced a simultaneous loss of supply across our network,” EKEDP said.
“A potential system failure or collapse is suspected. We are currently working with our partners as we hope for speedy restoration of the grid.”
The Jos Electricity Distribution Company said, “The current outage being experienced within our franchise States is a result of loss of power supply from the national grid.
“The loss of power supply from the national grid occurred this morning at about 1128 hours of today, Thursday, 7th November 2024, hence the loss of power supply on all our feeders. We hope to restore normal power supply to our esteemed customers as soon as the grid supply is restored back to normalcy.”
The Ikeja Electricity Distribution Company reported a power outage at 11:29 am.
“Dear Esteemed Customer, please be informed that we experienced a system outage today, 7 November 2024, at 11:29 hrs, affecting supply within our network.
“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us,” IKEDC said.
More pains despite private sector players
The nation successfully privatised power generation and distribution companies in November 2013, but yet power supply remains a mirage still.
Nigeria’s power firms generate and supply between 3,500 megawatts and 5,500MW of electricity to over 200 million citizens across the country.
There is the issue of low power supply. For instance, the grid delivers only 1,000MW to a city of 25 million people. By contrast, Shanghai, with roughly the same population, supplies more than 30,000MW at peak demand.
Counting cost of grid collapse
For industries, small businesses, and companies, among others, the associated cost of the national grid collapse can better be imagined than explained.
It is rather disheartening to note that the cost of national grid collapse has had a serious toll on businesses with many lamenting about their woes.
The Head of Corporate Communications, at Jos Electricity Distribution Company, Dr Elijah Adakole, has said that the recurring national power grid collapse affects Distribution Companies’ revenue generation.
Adakole, said this in an interview with the News Agency of Nigeria in Jos, recently.
For instance, he explained that most of JElDC’s customers were on the company’s pre-paid metering system, which meant they would only pay for energy consumed.
He, therefore, noted that the unavailability of power to distribute to consumers would invariably lead to zero revenue collection, a situation that would lead to serious financial losses.
Adakole said, “The incessant collapse of the grid also has a devastating impact on the economy as most businesses are dependent on electricity at both the macro and micro levels.”
He called on the Federal Government to seek long-lasting solutions to the issue.
Also reacting to recent national grid collapse, the General Manager of Public Affairs of the Transmission Company of Nigeria, Ndidi Mbah, said, “Clearly, between 2020 to date, we recorded 14 total and six partial grid disturbances totalling 20, which represents a 76.47 per cent reduction in grid disturbance, when compared to the previous five years, (2015 to 2019) where we had 64 total and 21 partial grid disturbances, totalling 85 times.”
She further hinted that the frequency spike was caused by issues encountered at one of our substations, which had to be shut down to prevent further complications.
According to the TCN media minder, a potential system failure or collapse is suspected, even as it assured that work is currently ongoing to work with its partners to ensure speedy restoration of the grid.
“The Transmission Company of Nigeria (TCN) wishes to inform the public that the national grid experienced a disturbance at approximately 11:29 am this morning, caused by a sudden rise in frequency from 50.33Hz to 51.44Hz.”
On restoration of bulk supply, TCN said, “Recovery efforts began immediately, and the Abuja Axis was restored within 28 minutes. Recovery is still ongoing.
“In addition to this, we are actively engaged in significant repair work on several critical transmission lines and substations.
“This includes the 330kV transmission lines along the Shiroro-Mando axis, major upgrades at the Jebba Transmission Substation, and the restoration of the second Ugwuaji-Apir 330kV transmission line.
“Furthermore, following the submission of the investigative report on the causes of previous grid collapses, we have begun addressing the identified weaknesses in the transmission system.
“Efforts are being made to close the gaps highlighted in the report and to enhance the overall stability and resilience of the grid. These efforts include both technical upgrades and strategic interventions based on the committee’s recommendations.
“However, it is important to note that while these repairs and improvements are underway, some degree of instability in the system is likely to persist until all major works are completed.
“We acknowledge the impact of these disruptions and ask for the understanding and patience of the public during this challenging period.”
Cost savings from removal of electricity subsidies
It is instructive to note that following the removal of electricity subsidies for Band A customers, Minister of Power Adebayo Adelabu announced that the government saved approximately N1.4 trillion annually.
But despite this cost saving device, the power sector still faces significant challenges. Underinvestment, outdated infrastructure, and liquidity constraints continue to hinder the ability of DisCos to meet growing consumer demand efficiently. Many DisCos are struggling with inadequate funding to upgrade networks, improve metering systems, and reduce power losses. These issues have made it difficult for the sector to achieve the reliability and service quality expected by consumers.
The reform agenda of the current administration under President Tinubu aims to address these lingering challenges. Minister Adelabu has reiterated that the government is committed to phasing out subsidies entirely and ensuring tariffs reflect the actual cost of electricity generation and distribution.
The reform plan also includes strategies to attract private investment into the sector to boost capacity and service delivery.
External loans to boost power supply
Investigation by The Nation revealed that the nation has secured about 10 loans worth $4.36bn from the World Bank over the past decade to address the power sector challenges.
According to available information, Nigeria secured approval of nearly $2 billion in loans from multilateral organisations, especially the World Bank under former President Muhammadu Buhari.
The loans are meant to support infrastructural development, distribution reforms, and renewable energy initiatives.
While some are still disbursing, others have been signed but are yet to begin disbursement. However, one loan approved in 2014 has been terminated.
Data obtained from the global financial institution revealed that four loans, amounting to $2bn, have been signed but yet to be disbursed.
Specifically, these loans include the Sustainable Power and Irrigation Project, valued at $500m, which was signed in September 2024, and three components under the Nigeria Distributed Access through Renewable Energy Scale-up Project, totalling $750m, approved in December 2023.
Other loans are actively disbursing funds, though large portions of their allocations remain undrawn.
These include the Power Sector Recovery Performance-Based Operation, the North Core Regional Power Interconnector, the Nigeria Electrification Project, and the NG-Electricity Transmission Project, all totaling $2.06bn, or 47.25 per cent of the total loan portfolio.
Out of the five loans currently under disbursement, Nigeria is already making repayments on three of them.
One example is the Nigeria Electrification Project, which has disbursed $269.67m from a total allocation of $350m.
Similarly, the North Core Regional Power Interconnector has released $15.74m from a $27.4m facility. The NG-Electricity Transmission Project, with two components worth $486m, is also disbursing funds while repayments are ongoing.
These projects reflect the country’s efforts to balance loan repayments with the need for critical infrastructure investment.
One project has been terminated. The Nigeria Power Sector Guarantees Project, initially valued at $125m, was cancelled on May 1, 2014, without any funds being disbursed.
The terminated project was aimed at improving electricity supply for consumers by supporting private sector-led investments in power generation and distribution.
It was designed to back key reforms in Nigeria’s power sector through a series of partial risk guarantees.
These guarantees were intended to support three key areas: Greenfield Independent Power Producers’ projects, the privatisation of Generation Companies, and the turnaround of distribution companies.
However, this project was terminated, and nothing was disbursed by the World Bank. There was no available information on the reason for the termination.
Despite the World Bank’s funding support over the years, delays in disbursement remain a significant concern, as $2.96bn of the total $4.36bn are still undisbursed.
The largest disbursement so far has been recorded under the Nigeria Electrification Project, which focuses on improving rural and off-grid energy access. So far, $269.67m has been released from the $350m earmarked for the project.
Notably, a substantial portion of the loans was secured under President Tinubu’s administration, highlighting the government’s renewed push to revitalise the country’s energy sector.
Since Tinubu assumed office in May 2023, the World Bank has approved new electricity loans over $1.901bn, representing 44 per cent of the total loan portfolio over the decade.
In December 2023, Tinubu’s government secured $750m for the Nigeria Distributed Access through Renewable Energy Scale-up Project (DARES), a move aligned with the administration’s focus on expanding renewable energy.
Also, the Sustainable Power and Irrigation Project, valued at $500m, was signed in September 2024 to enhance power generation and agricultural irrigation.
While the loans reflect a strategic commitment to addressing Nigeria’s energy deficit through renewable energy and infrastructure development, the slow pace of disbursements raises questions about project implementation and the government’s ability to unlock the full potential of these funds.
In a related development, the Federal Government has hinted of plans to provide Nigerians with at least 20 hours of daily electricity by 2027.
However, it has conditioned this target on sufficient investment in Nigeria’s oil and gas sector, which it has said is currently far below expectations.
The Special Adviser to the President on Energy, Olu Verheijen, made this statement at the Energy Week in Cape Town, South Africa, in a release by the State House Director of Information and Publicity, Abiodun Oladunjoye, on Thursday.
“By 2027, Nigeria aims to ensure 20 hours of electricity daily for consumers in urban areas and industrial hubs,” Verheijen said.
The statement is titled, ‘At African Energy Week in Cape Town, Olu Verheijen Invites Global Players to Invest in Nigeria’s Energy Sector.’
Verheijen’s comments come amid the frequent collapse of Nigeria’s national power grid, which has led to widespread blackouts across the country.
The grid collapsed on Tuesday, marking the 10th such incident since January 2024. The Federal Government has attributed these recurring collapses to ageing infrastructure, inadequate maintenance, and insufficient investment in the power sector.
Despite having an installed capacity of approximately 12,500 megawatts, Nigeria often generates only a fraction of this, leaving many areas without reliable electricity.
At the Energy Week, Verheijen told participants about efforts by the Tinubu administration to revitalise the nation’s power sector, with plans to provide more reliable electricity access for the 86 million Nigerians currently underserved.
She said the scheme aims to improve revenue assurance and collection.
Other key measures include tackling legacy debt, deploying seven million smart meters to reduce losses, and expanding off-grid solutions for remote communities.
Highlighting recent macroeconomic reforms, such as the removal of the petrol subsidy and foreign exchange liberalisation, she expressed confidence that Nigeria is poised for unprecedented growth.
“Under President Tinubu’s leadership, Nigeria is championing reforms to unlock its vast economic potential and create jobs,” she said, inviting foreign partners to participate in Nigeria’s next chapter of growth.
While discussing the recent reforms implemented by President Bola
Tinubu’s administration to attract investment, Verheijen noted that the country has historically underperformed in oil and gas production despite its wealth in the sector.
She referenced how countries like Brazil, which have only 30 per cent of Nigeria’s oil reserves, have outperformed Nigeria by producing 131 per cent more than the country’s current output.
“Despite our abundant resources, we have underperformed against our potential. For example, Brazil holds only 30 per cent of Nigeria’s oil reserves but produces 131 per cent more. This is largely due to under-investment,” she said.
She lamented that since 2016, Nigeria has attracted only 4 per cent of African oil and gas investments, while investment has surged in other, less resource-rich nations.
“Since 2016, Nigeria has managed to attract only 4 per cent of total investments in oil and gas, while less-resourced countries in Africa have enjoyed a larger share.
“When we analysed investment data, we also found that, between 2013, when Nigeria’s last deepwater project reached FID, and now, International Oil Companies (IOCs) operating in Nigeria have committed more than $82bn in deepwater investments in other countries they deemed to be more attractive destinations for their capital,” she told the audience.
Recognising this trend, the presidential aide highlighted efforts by President Tinubu’s administration to enact reforms aimed at reshaping Nigeria’s investment landscape.
She cited the government’s introduction of fiscal incentives targeting deep offshore and non-associated gas projects, marking the first time Nigeria has outlined a fiscal framework specifically for deepwater gas.
In efforts to enhance the upstream oil and gas sector, she said her office has collaborated closely with the office of the National Security Adviser to create and distribute focused Security Directives, leveraging insights gathered from on-the-ground operators.
The presidential aide also revealed efforts by the current President Tinubu administration to further open up the oil and gas sector for larger investments with a set of clear fiscal incentives for non-associated gas and deep offshore oil and gas exploration and production.
“This is the first time that Nigeria is outlining a fiscal framework for deepwater gas since exploration in the basin commenced in 1991,” she said.
According to her, amongst other initiatives, there has been a focus on midstream and downstream investments in compressed natural gas, liquefied petroleum gas, and electric vehicles as part of the Presidential Gas for Growth Initiative.
• Lagos invites bids for 4GW gas-fired power plants
On-going efforts to end the incessant collapse of the national grid and stabilise electricity supply will take a minimum of three weeks, The Nation gathered last night.
The grid collapsed twice this week alone –first on Tuesday and second on Thursday- making a total of 11 this year.
The Transmission Company of Nigeria (TCN),which has responsibility for evacuating electric power generated by the electricity generating companies (GenCos) and wheeling it to distribution companies (DisCos),has already identified three hubs said to be the main sources of the grid collapse.
These are Shiroro in Niger State, Jebba and Ganmo in Kwara State, all of which are said to have been recording abnormal activities including high frequency.
Heavy equipment to aid engineers in rectifying the situation are being moved to the hubs, according to the Executive Director, Transmission Services Provider of the TCN,Engineer Gbenga Ajiboye.
Ajiboye said by phone that the equipment were being moved from substations under construction across the country to the three hubs.
Before noon yesterday, electricity supply had been restored to some parts of the country following Thursday’s grid collapse.
The Independent System Operator (ISO) of the TCN confirmed yesterday that the GenCos had produced 1,844MW by 4pm.
The TCN Public Affairs, General Manager, Ndidi Mbah, attributed the Thursday grid collapse to a sudden surge in frequency from 50.33Hz to 51.44Hz at 11.29am on the day.
She said:”The frequency spike was caused by issues encountered at one of TCN’s substations, which had to be shut down to prevent further complications. In addition to this, we are actively engaged in significant repair work on several critical transmission lines and substations.
“This includes the 330kV transmission lines along the Shiroro–Mando axis, major upgrades at the Jebba Transmission Substation, and the restoration of the second Ugwuaji–Apir 330kV transmission line.
“Furthermore, following the submission of the investigative report on the causes of previous grid collapses, we have begun addressing the identified weaknesses in the transmission system.
“Efforts are being made to close the gaps highlighted in the report, and to enhance the overall stability and resilience of the grid. These efforts include both technical upgrades and strategic interventions based on the committee’s recommendations.
“However, it is important to note that while these repairs and improvements are underway, some degree of instability in the system is likely to persist until all major works are completed.
“We acknowledge the impact of these disruptions and ask for the understanding and patience of the public during this challenging period.
“TCN remains committed to improving the reliability of electricity supply, recognizing the vital role that stable power plays in Nigeria’s socio-economic development.
“We assure the public that all necessary measures are being taken to ensure the grid’s long-term stability, in line with the recommendations of the investigative committee, while also addressing infrastructure damage such as vandalized transmission lines.”
Power Minister, Adebayo Adelabu, on Wednesday received the report on the national grid from a six-man committee in Abuja.
He said owing to the financial implications of the recommendations he would request funding through a supplementary budget or in the 2025 Appropriation Bill.
“There will be an amended report after this meeting, which will help me to submit to Mr. President,” Adelabu said.
“Because all these have financial implications, it must be so recognised for inclusion in the 2025 budget.
“We will not wait until then for it to start implementation. Whatever we can actually cover within our 2025 budget now, and even if it is possible, a supplementary budget. Because it is a national issue, and must be so addressed.”
The minister blamed the incessant grid collapse on vandalisation of electricity and aging infrastructure.
He also said lack of maintenance in the past was responsible for the problem.
He said although it was not a pleasant development for the country to record frequent grid collapse, it was commendable that the TCN technical team always responds swiftly to restore power within 24 hours.
He said: “What we desire is that we should arrest the situation and that it should not happen at all. And that is why we are here.”
Presenting the report, the committee chairman, Nafisat Ali, who is also the Executive Director Independent System Operator, urged the Federal Government review relaying philosophy and setting, particularly at critical nodes as an interim measure.
The committee also recommended that government should enhance the capacity development for Maintenance and System Operator (SO) staff.
The committee, according to her, also recommended the testing of existing equipment at the critical nodes to establish reliability, develop a framework and adopt reliability-centered maintenance.
Other recommendations of the committee include: identification of “critical ongoing projects for speedy completion (low hanging fruits); enhancing distribution network and capacity; decentralisation of grid management; implementation of full Supervisory Control and Data Acquisition (SCADA) and Telecommunication upgrade across the network; modernisation of grid infrastructure; adoption of the use of ring-fenced network.
Lagos invites bids for 4GW gas-fired power plants amid grid failures
Amid the fluctuations in power supply, the Lagos State Government has formally invited bids from investors, independent power producers, and energy solution companies to develop up to 4GW gas-fired power plants.
The state currently receives only 2GW from the national grid, 4GW short of its minimum demand of 6GW.
The state government has designated four hubs for power station construction under its Clean Lagos Electricity Market plan to address this deficit.
Lagos Ministry of Energy and Mineral Resources said: “The minimum expected generating capacity for each of the four hubs will be 500MW, which one or more generating power firms shall generate.”
Companies selected through the bidding process will be expected to secure their funding, based on a power purchase agreement with the state.
The national power grid in Osogbo, Osun State collapsed again yesterday, leaving the nation almost in total blackout.
The collapse, the second in less than 50 hours and the 10th this year saw generation dropping from 2,709.45MW at 11. 29 am to a mere 4.50MW as of noon.
The load distribution profile of the website was not accessible for records on energy sent out to the 11 electricity Distribution Companies (DisCos) in the country.
TCN Public Affairs, General Manager, Ndidi Mbah, who confirmed the development, hinted at the instability in the system as ‘’technical upgrades and strategic interventions’’ are on to stabilise the grid.
Mbah explained that the latest collapse of the grid was due to a sudden surge in frequency from 50.33Hz to 51.44Hz.
She explained that power was restored to Abuja shortly after the grid collapse while efforts were intensified to ensure that most parts of the country had power restored.
Her statement reads in part: “The Transmission Company of Nigeria (TCN) wishes to inform the public that the national grid experienced a disturbance at approximately 11:29 am this (yesterday) morning, caused by a sudden rise in frequency from 50.33Hz to 51.44Hz. Recovery efforts began immediately, and the Abuja Axis was restored within 28 minutes. Recovery is still ongoing.
“The frequency spike was caused by issues encountered at one of TCN’s substations, which had to be shut down to prevent further complications.
‘’In addition to this, we are actively engaged in significant repair work on several critical transmission lines and substations.
“This includes the 330kV transmission lines along the Shiroro–Mando axis, major upgrades at the Jebba Transmission Substation, and the restoration of the second Ugwuaji–Apir 330kV transmission line.
“Furthermore, following the submission of the investigative report on the causes of previous grid collapses, we have begun addressing the identified weaknesses in the transmission system.
“Efforts are being made to close the gaps highlighted in the report, and to enhance the overall stability and resilience of the grid. These efforts include both technical upgrades and strategic interventions based on the committee’s recommendations.”
“However, it is important to note that while these repairs and improvements are underway, some degree of instability in the system is likely to persist until all major works are completed.
“We acknowledge the impact of these disruptions and ask for the understanding and patience of the public during this challenging period.
“TCN remains committed to improving the reliability of electricity supply, recognizing the vital role that stable power plays in Nigeria’s socio-economic development.
“We assure the public that all necessary measures are being taken to ensure the grid’s long-term stability, in line with the recommendations of the investigative committee, while also addressing infrastructure damage such as vandalised transmission lines.”
On Tuesday, several parts of the country were thrown into a blackout after the system experienced a collapse.
The TCN blamed that incident on “a series of lines and generators trippings that caused instability of the grid and, consequently, the partial disturbance of the system.
Power Minister Adebayo Adelabu on Wednesday received a report on the national grid from a six-member committee.
He said owing to the financial implications of the recommendations he would request funding through a supplementary budget or in the 2025 Appropriation Bill.
Adelabu had said, “Out of this. So there will be an amended report after this meeting, which will help me to submit to Mr. President.
“Because all these have financial implications. And it must be so recognised for inclusion in the 2025 budget.
Only two days after the national grid collapsed, generation crashed from 2,709.45MW at 11:00am to 4.50MW at 12pm on Thursday.
The Independent System Operator (ISO) of the Transmission Company of Nigeria (TCN) disclosed this on its website.
The load distribution profile of the website was not accessible for records on energy sent out the 11 electricity Distribution Companies (DisCos).
Rhe TCN Public Affairs, General Manager, Ndidi Mbah said the situation was due to a sudden surge in frequency from 50.33Hz to 51.44Hz at 11.29am yesterday.
Her statement said efforts to restore the grid commenced instantly.
According to her, power has been restored to Abuja while recovery work is still ongoing.
Her statement reads in part: “The Transmission Company of Nigeria (TCN) wishes to inform the public that the national grid experienced a disturbance at approximately 11:29 AM this morning, caused by a sudden rise in frequency from 50.33Hz to 51.44Hz. Recovery efforts began immediately, and the Abuja Axis was restored within 28 minutes. Recovery is still ongoing.
“The frequency spike was caused by issues encountered at one of TCN’s substations, which had to be shut down to prevent further complications. In addition to this, we are actively engaged in significant repair work on several critical transmission lines and substations.
“This includes the 330kV transmission lines along the Shiroro–Mando axis, major upgrades at the Jebba Transmission Substation, and the restoration of the second Ugwuaji–Apir 330kV transmission line.
“Furthermore, following the submission of the investigative report on the causes of previous grid collapses, we have begun addressing the identified weaknesses in the transmission system. “Efforts are being made to close the gaps highlighted in the report, and to enhance the overall stability and resilience of the grid. These efforts include both technical upgrades and strategic interventions based on the committee’s recommendations.
“However, it is important to note that while these repairs and improvements are underway, some degree of instability in the system is likely to persist until all major works are completed.
“We acknowledge the impact of these disruptions and ask for the understanding and patience of the public during this challenging period.
“TCN remains committed to improving the reliability of electricity supply, recognizing the vital role that stable power plays in Nigeria’s socio-economic development.
“We assure the public that all necessary measures are being taken to ensure the grid’s long-term stability, in line with the recommendations of the investigative committee, while also addressing infrastructure damage such as vandalised transmission lines.”
Minister of Power, Chief Adebayo Adelabu on Wednesday received a report on the national grid from a six-man committee in Abuja.
He said owing to the financial implications of the recommendations he would request for funding through a supplementary budget or in the 2025 Appropriation Bill.
