Still on Nigerians’ verdict on power sector privatisation after 10 years

As Nigeria celebrates 10 years post-power sector privatisation, some Nigerians have scored the sector’s performance low; TOPE SUNDAY takes a look at the scenario.

In 2013, Nigeria decided to privatise the sector. But 10 years later, the expected yields from the privatisation of the NESI have been hampered. With such constraints, although the total national installed generation capacity stands at 13,000MW, Nigeria barely manages to get a third of that to where power is needed. The rest is stranded.

The confession

Alluding to the fact that the sector is yet to meet its desired results, President Bola Ahmed Tinubu recently, at the Nigerian Electricity Supply Industry (NESI) Market Participants and Stakeholders Roundtable (NMPSR) in Abuja, disclosed that 10 years after the power sector was privatised its objectives have not been met, stressing that over 90 million still Nigerians lack access to electricity.

Tinubu, who was represented by his special adviser on power and infrastructure, Malam Sadiq Wanka, also lamented that the country’s national grid only serves about 15% of the country’s demand, and called for intensified efforts to address commercial issues and improve the investment attractiveness of the sector.

The verdict

Like the president, an Abuja resident, Ms. Murtala Hairat, who spoke with this reporter, expressed dissatisfaction over the sector’s performance in the last 10 years.

She said: “I’m not satisfied with the power supply in Nigeria in the last 10 years. Nigerians have faced several challenges in electricity supply over the last 10 years. Some of the common challenges include inadequate generation capacity, transmission and distribution losses, poor infrastructure, lack of maintenance, high cost of electricity, and frequent power outages.

“These challenges have resulted in an unreliable power supply and it has hindered the economic growth and development in the country. The high cost of electricity in Nigeria is one of the major challenges faced by Nigerians in the last 10 years.

“It refers to the relatively expensive prices that consumers have to pay for electricity. There are several factors contributing to the high cost, including the cost of power generation, inadequate infrastructure, transmission and distribution losses, and inefficiencies in the power sector.

“These factors result in increased expenses for electricity generation, which are then passed on to consumers through higher tariffs. As a result, many Nigerians struggle to afford the cost of electricity, limiting their access to reliable power supply.

Also, another resident, Alamin Olalekan, said: “I am not satisfied with the power supply in the last ten years. Nigeria has a bad power supply and there is no change even after it was privatized. There are some communities in Nigeria that are having poor power supply and nothing has been done about it in the last 10 years.

“The power supply in many other areas is not stable. Some areas barely have 10 hours of light out of 24 hours a day and it is bad. Light is essential and it is needed in many aspects of our lives and also in carrying out our daily activities. Another challenge is that electric tariffs are too high for people to pay.

“One of the few things that can be done to improve the electric supply chain in Nigeria is to educate the public about energy conservation and also involve them in decision-making processes that can foster a sense of ownership and accountability in the power sector.”

In his opinion, MuhammadTayyib Sheidu lamented the high cost of the electricity tariffs, saying that living in a rural area makes access to electricity harder.

Sheidu said: “As a Nigerian, I have to say that I have experienced a lot of challenges due to the high cost of the electricity tariffs, and the fact one is living in a rural area makes it even harder.

“As a Nigerian, I have to say that I have experienced a lot of challenges due to the high cost of the electricity tariffs, and the fact one is living in a rural area makes it even harder. Also, there are illegal connections that also trip off the electricity and this is dangerous.

“I believe that this will change if the government ventures into other sources of energy like solar and wind to give a wider variety for the people. Nigerians should be educated on the dos and don’ts and people must get penalised for illegal connections’’.

On his assessment of the power sector in the last 10 years, another Nigerian, Khalifa Umar, told this medium that, “One of the prevailing issues has been the recurrence of power outages, disruption of daily life and economic activities.

“Inconsistent service delivery has left many Nigerians frustrated, hindering the realization of the full potential of a reliable power grid. The high tariffs are necessary for the sector’s sustenance and this has posed a challenge for consumers, particularly in a country with diverse economic backgrounds. Therefore, balancing affordability and sustainability becomes a delicate task.”

A furniture maker, Chukwuemeka Eze, who admitted that there is little improvement in the sector, but said the feat is not enough for the manufacturing industry.

“To be sincere there has been a little improvement in the power supply in the last ten years but not enough to depend on especially for us in the production (manufacturing) industry because we still rely heavily on generators to power our equipment and it’s not pocket-friendly.

“What they should do is simple, the president has the power to hire and fire. So, if those entrusted with power can’t fix the problem, he should fire them. Also, enough of this entitlement of allowing individuals to build independent power stations period.

“Also, the challenges of the sector are numerous starting from the poor or epileptic power supply to the high cost of the tariff. I said they are not dependable,” he said.

Another Nigerian, Mr. Odo Emmanuel, who said the sector in the last 10 years is full of ups and downs, added that only 40% of the population has access to electricity, with many rural areas still lacking access.

He said: “I would imagine that asking the average Nigerian about their satisfaction with the power sector would yield mixed results. While some may be happy with the progress that has been made, others may still be frustrated by the lack of reliability and high costs. It would be interesting to hear the specific experiences people have had with the electricity supply chain and to get their ideas on how it could be improved.

“There are several challenges that Nigerians have faced with regards to electricity supply over the past ten years. Some of the most prominent ones include Limited access to electricity: Only about 40% of the population has access to electricity, with many rural areas still lacking access.

“Even those with access to electricity often experience frequent power outages and blackouts. Electricity is expensive, and the costs can be prohibitively high for many households.”