Tag: Nigeria’s electricity

  • Powerless: Nigeria’s unending struggle with electricity

    Powerless: Nigeria’s unending struggle with electricity

    Available records show that the first public electricity generation took place at Pearl Street Station in New York in 1882 and that electricity generation in Nigeria began in Lagos in 1886. Therefore, one can safely say that this year marks the 142nd anniversary of commercial electricity globally. It also means that all this talk about artificial intelligence as if the world wants to come to an end is the same way the world looked at electricity as a game changer almost a century and a half years ago. Put simply, railways were the game changers of an era before electricity happened to our world! It also means that artificial intelligence is similar to how we once had steam and internal combustion engines, which were revolutionary in their time.

    In all frankness, Nigeria’s electricity crisis is a stark reminder of her chronic inability to address critical infrastructure needs. That we are not taking the issue seriously is just another Nigerian debacle which, if not resolved, may catalyse unintended consequences. The botched privatization of the power sector, marred by a lack of technical expertise and plagued by cronyism, has failed to deliver on its promises. Instead of ushering in a new era of reliable power supply, Nigerians are still grappling with the same old ‘padi-padi’ problems that have held us back for decades. Of course, that’s why we keep seeing the same Egyptians we had left many decades ago! To avoid exacerbating this fleeting illusion, we must rethink our approach and prioritize competence over connections.

    Nigeria’s electricity generation is grossly insufficient, woefully hindering economic growth and global competitiveness. Despite 142 years of global electricity generation, Nigeria’s output remains abysmally low, struggling to reach 10,000 megawatts for its large population. For perspective, a city like Lagos requires significantly more energy to power its districts, with estimates suggesting over 40,000 megawatts to rival global hubs like New York, Singapore, or Johannesburg. Addressing this energy gap is crucial for the country’s development.

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    If we had been as serious, Nigeria ought to have prioritized alternative energy sources, like solar power. While previous governments’ efforts were commendable, the country could have done more. With abundant raw materials and a large market, Nigeria could have become a significant producer and exporter of solar panels, generating billions in foreign exchange and reducing electricity costs. This would have created sustainable jobs and stimulated economic growth. With the creation of the credit corporations by President Bola Tinubu, access to credit would have made it easier for individuals to invest in solar panels. By developing our renewable energy sector, we can unlock economic benefits and create a more sustainable future.

    The Gujarat Hybrid Renewable Energy Park in India is five times the size of Paris. Do we know how much energy that is? But again, how did we get here? In Nigeria, there are places in the North that are so hot that we could have had solar farms that can generate electricity. However, the country’s energy development is hindered by a constitution that prioritizes internal consumption over export-oriented production. This has led to a system characterized by state-funded privileges, parasitic elitism and patronage politics. Clientelism, corruption and lack of political will are also part of the party. Regrettably too, organized labor has limited influence in this context. Since it was not involved in the privatization process, its input to resolve “this deeper crisis of values” is zero!

    Gone were the days of the 1950s and 1960s when Nigeria was a productive powerhouse. According to the 1961 UN Yearbook, the Nigerian Ports Authority ranked 7th globally in efficiency. Then, Nigeria was a significant exporter of commodities like cocoa, rubber, palm oil, and groundnuts. If the country had maintained this momentum, what Nigeria would have been is that, by now, she would have diversified her economy and developed a robust rubber industry. This could have led to significant exports of tyres to major car manufacturers in South Africa, Japan, and the UK, potentially generating billions of dollars in revenue annually.

    Thirty years ago, China was not considered a major player in global electricity production. However, through vision and seriousness of intent, China has become a leader in this field. Similarly, Iran, Qatar, Russia and Vietnam have achieved notable success in providing affordable electricity even as Nigeria still struggles to provide basic necessities like education and electricity to her teeming population. So, do we have to do a degree in Statistics before coming to terms with the fact that a large population without education and other basic necessities of life is not an achievement?

    Ekiti, Enugu, and Imo States deserve recognition for their efforts to establish independent electricity generation frameworks. However, it’s concerning that only a few states are taking proactive steps towards energy self-sufficiency. Osun is a special case and the reasons are obvious! In the current situation, even the blind can see that a dynasty owns Osun State in the way Obafemi Awolowo could not have thought of owning the now-rested Western Region. But who do we blame? After all, he who controls the government controls the resources of the state! Coincidentally, the template has already been institutionalized and there’s nothing anyone can do about it! Anyway, that’s an issue for another day!

    Energy ‘is indeed the lifeblood of modern society’, as former US Secretary of Energy Ernest Moniz once said. To get out of the woods therefore, Tinubu as an affirmed Federalist has a historic opportunity to make a lasting impact on Nigeria’s energy landscape. To achieve this, the president must listen to reason and act decisively. He must recognize the fact that, by fostering collective progress, regional cooperation, shared expertise and a cohesive strategy can accelerate electricity development. The proposed Southwest Electricity Development Board offers a promising model, and similar initiatives in other regions could replicate its success.

    The paradox of Nigeria’s power sector reforms is that they reveal the fragility of human control and that, despite our vaunted technological advancements, the flickering lights and darkness that pervade our lives bear witness to the limits of our mastery. It is sad to note that electricity – that transient force we daily seek to harness – remains an elusive will-o’-the-wisp, always promising but never fully delivering! Bearing these in mind, Tinubu must recognize that the complexity of agreements and arrangements in the energy sector stifles meaningful reform, discourages new investment and hinders progress and that the sector must be liberalized to achieve economies of scale and reduce prices. However, the dominant players’ reluctance to adopt metering and end estimated billing raises questions about these monopolists’ commitment to a competitive market. Unlike telecommunication companies, which have embraced transparent billing practices, the energy sector’s resistance to reform is striking.

    The introduction of foreign concepts like band grading has been misguided from the start, undermining the effectiveness of the Nigerian Electricity Regulatory Commission (NERC). Yes, the focus on increasing power availability hours is crucial, as it directly translates to increased revenue for generation and distribution companies. Nonetheless, the excuses for rate hikes become unjustifiable, especially when their destinies are tied to the temperatures of the dollar.

    In the final analysis, the president must hold his appointees accountable for their performance. If they fail to deliver, he should not hesitate to replace them. The sweet truth is that Nigeria cannot afford to repeat past mistakes, which have hindered progress for generations. To move forward, we need diligence and integrity. International examples like Germany’s Energiewende program and Australia’s willingness to reassess her privatization approach offer valuable lessons. By learning from these success stories and leveraging economies of scale, we can drive Nigeria’s progress and achieve meaningful reform.

    May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

  • Mr President, it’s time to banish the darkness

    Mr President, it’s time to banish the darkness

    By Oguntoye Opeyemi

    The country is in dire need of an immediate solution to its power supply issues. Many young citizens possess the drive and passion to contribute to the nation’s development, yet they are hindered by the lack of adequate power supply. Without reliable electricity, aspiring entrepreneurs find it exceedingly difficult to establish and sustain their businesses. The current state of total darkness or erratic power supply significantly hampers the growth of small and medium-scale enterprises. It’s crucial to recognize that no nation can achieve sustainable growth and development without ensuring reliable access to power.

    The Egypt Megaproject stands as a testament to Siemens’ historic achievement, delivering 14.4 GW of power capacity to Egypt’s grid in a record-setting 27.5 months from financial closure. This monumental endeavour not only alleviated persistent power shortages but also propelled Egypt toward long-term power security, crucial for industrial growth. Additionally, the swift completion of two simple cycle power plants in Assiut and West Damietta, totalling 1,500 MW, within just eight months in 2015, further exemplifies the efficacy of visionary leadership and practical implementation. While comparing ourselves to China’s Belt and Road Initiative may seem ambitious, studying such initiatives could offer valuable insights into addressing our own challenges of consistent power shortages.

    It is evident that effective leadership is paramount in driving the reform agenda for our country, and the support of the people is crucial in this journey towards a greater Nigeria. The Ministry of Communication, Innovation, and Digital Economy deserves commendation for its proactive measures, including the introduction of the 3 Million Technical Talent (3MTT) Program. This initiative has been well-received by Nigerians as it offers a promising platform for success in the IT sector. However, to truly maximize the impact of such programs, reliable electricity is indispensable. Access to power is essential for powering up gadgets and enabling active participation in training programs. Therefore, it is imperative that efforts to improve electricity supply align with the goals of the ministry to ensure the success of initiatives aimed at empowering Nigerians in the digital age.

    When the current minister was appointed, his first initiative was to start a weekly political socio-event, capturing all his former political associates from his former political party. This went on for months, neglecting the core mandate given to him by the presidency. It raises questions about the minister’s understanding of the urgency and uniqueness of the ministry’s challenges. Given the critical nature of this ministry, it was a mistake to treat it as a trial-and-error endeavour. It is evident that the current minister is more bewildered than even a bus conductor. This calls for a reassessment of our approach.

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    Despite numerous challenges, the Transmission Company of Nigeria has failed to fulfil its mandate of efficiently transmitting power from generating stations to the people. Presently, the country boasts an installed power capacity of 12-16,000MW, yet even if we assume we’re generating 50% of this capacity, roughly 7GW, the transmission network has only managed to transmit about 4-5GW of power over the last eight years. This stagnant performance underscores the dire need for structural reforms within the agency. Given the pressing necessity for change, the co-ordinating minister should prioritize a comprehensive overhaul or restructuring of the agency.

    Egypt’s energy strategy has evolved beyond thermal stations, with a concerted effort to diversify into renewable sources. Beginning in 2016, the government prioritized solar, wind, and conventional power, incorporating gas turbines while halting the development of hydropower stations. During the period from 2010 to 2022, significant progress was made, adding 16GW of power, largely attributed to wind and solar energy. Given the immense potential and demand in this sector, it is crucial to appoint a leader who not only comprehends the role but also possesses a resolute and non-controversial demeanour.

    The advancement proposed could significantly benefit small and medium-scale enterprises (SMEs), but it is essential for the president to take decisive action and assume control of the ministry. The country has been experiencing total grid collapse since time immemorial; however, between 2017 and 2023, the nation witnessed 46 grid collapses. It is accounted that in 2023 alone, the grid collapsed 12 times, accounting for 26%. The data received in performance hasn’t improved and if proper analyses of the Discos are examined also, it will equally give the same retrogressive output.

    No nation that is desirous of progress can actually achieve such with the present state of things.  In the latest data released by the Nigeria Electricity Regulatory Commission, NERC, most Discos have low performance in cash collection with very high billing efficiency, which has a very adverse effect on the AT &C losses of the companies. Oftentimes, there are regulations to improve the performance of the distribution companies but the major stumbling blocks are still with the government. If urgent action is not taken, we will continue to drag the same issues in 2027.

    Tunisia with a vision has recently concluded a plan to embark on a special power project called Tunisia-Italy Interconnector (ELMED). The ELMED Interconnector Project is a planned bi-directional power exchange link between Italy and Tunisia. The 600MW capacity project will be the first direct current connection between Europe and Africa. These are the kinds of initiatives that we know President Bola Ahmed Tinubu for, but unfortunately, no one appears to be able to drive it in the Ministry of Power. Solutions to each of the various value chains in the power sector must be itemized and implemented as soon as possible, to guarantee adequate and uninterrupted power supply to the country.

    The citizens of the country want to stay back and develop their nation, which will give them the chance to compete with the rest of the world, but they need adequate power supply. The only hope that they have is the belief that your capability is undoubted to deliver the renewed hope agenda. The young Nigerians who will benefit through the enormous jobs are counting on you, while the SMEs don’t want to lose hope either.