Headline

Nigeria’s Ailing Power Sector: How FG’s Projections Failed

Published

3 years ago

December 30, 2022

Editor

As 2022 winds down, a retrospective look at the power sector holds a bleak hope. It has been a circle of stunted growth and shamble of failure from the transmission, generation and distribution subsectors. Like Nigeria’s economy, the power sector has refused to progress due to lack of investment and managerial competence. There is a nexus between the power sector and industrialization. Indeed, one cannot do without the other; an adequate electricity supply is instrumental to the growth of businesses, especially Small and Medium Enterprises.

Nigeria needs an estimated 25,000MW to 40,000MW capacity to serve its 218 million population. Still, currently, the installed generating power capacity is about 12,522MW, and transmission and distribution infrastructure can only deliver an average of 4,000MW to businesses and homes.

President Muhammadu Buhari, on his resumption of office in 2015, brought forth a renewed vista for the power sector; however, as he prepares to leave Aso Villa on May 29, 2023, the industry remains a playground of embarrassment.

Nigeria’s power industry is multidimensionally challenged, afflicted by under-investment, outdated infrastructure, debts and inefficiencies. Power shortages have crippled SMEs, stunted the growth of productive sectors and made the cost of local products uncompetitive.

The Electric Power Sector Reform Act 2005 and the succeeding Roadmap for Power Sector Reform 2010 set out to comprehensively transform the power industry through privatization, raise output to 40,000MW by 2020 and attract investment and the best global players into the market. Regrettably, the lofty milestones have been missed because of the age-long decay occasioned by mismanaging privatization.

Some 90 million Nigerians lacked access to electricity by 2019, the world’s worst, below Congo DR’s 70 million and Ethiopia’s 58 million, the World Bank said. The International Monetary Fund says Nigerian businesses bleed by about $29 billion annually due to power shortages.

Every approach to rescue the Nigerian power sector has hit the rock as most Nigerians live without 24-hour electricity.

Consequently, current power generation stands below 3,800MW, and the per capita electricity usage is 136 KW/h, one of the world’s lowest. In Libya, it is 4,270 KW/h; India, 616KW/h; China, 2,944KW/h; South Africa, 4,803 KW/h; and Singapore, 8,307KW/h.

DAILY POST highlights four significant events that impacted Nigeria’s Power industry, namely: The incessant national grid collapses, Electricity Distribution Companies’ Liquidation crisis, and the unsuccessful National Mass Metering Project, NMMP.

National Grid Collapses

Incessant national grid collapses marred the period under review. Although the Nigerian Electricity Regulatory Commission, NERC, still needed to compile data on system collapse in 2022, the grid’s performance and various updates from DisCos showed that Nigeria’s power grid had collapsed about eight times by September this year.

For instance, on September 25, 2022, grid collapse occurred when power generation on the system crashed from over 3,700MW to as low as 38MW.

On July 20, 2022, Nigeria’s power grid saw the sixth collapse in 2022, while on June 13, it was also reported that the grid collapsed. The nation’s power system collapsed twice in March (The same period TCN said it recorded a peak of 5,615.40 MW) and twice again in April this year.

2022 Electricity Bill

The Senate passed the Electricity Bill 2022 in July to boost the reforms in the power sector; however, President Muhammadu Buhari is yet to assent to the Bill. Senator Gabriel Suswam, Chairman Committee on power, said the Bill sought to provide an ideal legal and institutional framework for the industry. He further stated that the Bill would correct the imbalances in the existing transmission infrastructure in Nigeria.

DisCos’ Liquidation Crisis

It has been ups and down for the Power distribution companies in Nigeria. The debt burden, poor balance sheet and lack of investment are hallmarks of challenges facing DisCos. Still, the problem of distribution infrastructures has continued to affect the subsector. Upon privatization in 2013, Nigerians thought the development would herald a new vista, but the reverse is the case. Minister of Power, Abubakar Aliyu said nine out of the eleven DisCos are on the verge of bankruptcy. Aliyu further disclosed that the situation had forced the Nigerian Government to mandate banks to find serious investors interested in buying its 60 per cent equity in Abuja, Kano, Kaduna, Benin, Ibadan and Portharcourt DisCos.

National Mass Metering project

In 2022, the Federal Government promised to provide Nigerians with free meters via the National Mass Metering Project; however, this is yet to be achieved. The Central Bank of Nigeria Governor, Godwin Emefiele, stated that the bank disbursed N47.8bn for about 865,956 meters across the country. However, with the implementation of projects by DisCos and Meter Asset Providers, MAPs have yet to achieve the expected results of providing free meters to Nigerians.

Presidential Power Initiative-Siemen Project

The Nigerian Government, in 2019 signed the Electricity Road Map agreement worth €63 million with the German-based Siemens aimed at modernizing the country’s national grid and achieving 7,000 megawatts by 2021, 11,000 megawatts by 2023 and 25,000 megawatts by 2025.

The Federal Executive Council, FEC in December last year okayed the project with the hope of driving improvement in the nation’s power sector; however, the first target of achieving 7,000 MW by 2021 has been missed, while the 2023 and 2025 years’ targets of 11,000 MW and 25000 MW respectively are obviously unattainable.

The Minister of Power, Abubakar Aliyu had announced the delivery of the ten morbid power transformers to be situated across the country, but on Wednesday, the former Managing Director of Transmission Company of Nigeria, TCN, Dr Usman Mohammed disclosed that the Siemen-FG deal cannot achieve 7000 MW.

Expert React

Reacting to the performance of Nigeria’s power in 2022, energy expert, Mr Eleojo Joseph said the industry had been a colossal failure.

He disclosed that the electricity transmission in Nigeria should be localized to address the issue of National grid collapse.

“The power sector in 2022 is a colossal failure. We have never experienced this amount of national grid collapse in Nigeria. It was as if the national grid was a switch that got turned on and off. The Transmission Company of Nigeria should be disbanded, and electricity should be localized. We are wasting material and financial resources in running the TCN.

“Why are we struggling to generate more than 5,000Mw? The answer is simple. Mini and small electricity generating companies should be encouraged and given necessary financial assistance towards ramping up generation. Imagine a situation whereby 2,000 mini and small companies are generating from 200Mw to 2,000Mw across the length and breadth of Nigeria— using the sun, water, wind and other resources?

“Regarding distribution, let the Government revisit the privatization of the DISCOs one more time. Let competent organizations come on board, and the narrative will change drastically. See the telecommunication sector as a reference point. The DISCOs are doing what they like because NERC, as the regulating body, is not effective and efficient. The war will continue between consumers and DISCOs due to the dog-eat-dog situation between them. Why on earth should consumers buy poles, meters and transformers for DISCOs?

“On the whole, the Government should declare an emergency in the power sector and bring reputable international power generation and distribution companies to step into this critical sector. Without electricity, we are doomed as a nation.”

Also, he stated that “local manufacturers will continue to wallow in pain, and the economy will continue to nose-dive”.

Similarly, dissecting the power sector in an interview on Wednesday, Dr Usman Mohammed said the nation’s power is the worst of today.

He said the sector retrogressed instead of progressing with the billion naira intervention by the Nigerian Government.

As a way forward, he suggested that whosoever emerged as president of Nigeria in the forthcoming election must personally champion Nigeria’s power sector reforms.

He also stated that the key to unlocking the sectors’ potential is adequate investment across the three subsectors: Transmission, Generation and Distribution.

Usman said a competent managerial team should be engaged if the Nigerian power sector desires change in the coming years.

Indeed, no matter the direction of the power industry today, Nigerians hope that the country will head on the right path in the future.
DAILY POST

Headline

Aircraft Crashes In Owerri With Four Persons Onboard

Published

1 day ago

December 17, 2025

Editor

Photo: File copy

A Cessna 172 aircraft with registration number 5N-ASR, operated by Skypower Express, has crashed at the Sam Mbakwe International Cargo Airport, Owerri, Imo State.

The aircraft had departed Kaduna International Airport en route to Port Harcourt International Airport before diverting to Owerri after the crew declared an emergency.

The crash occurred at about 8:00 pm on the airport premises, with four passengers and crew members onboard.

Confirming the incident, the Director, Public Affairs and Family Assistance of the Nigerian Safety Investigation Bureau (NSIB), Mrs. Bimbo Oladeji, said the agency had been notified of the crash.

According to the NSIB, the aircraft crashed on the approach area of Runway 17, but no fatalities have been recorded so far.

The statement said: “Following the occurrence, airport emergency services were successfully activated and arrived on site promptly. Reports indicate that there was no post-crash fire, and the runway remains active for flight operations, with other aircraft taking off safely after the incident.

“Efforts are currently underway to coordinate the recovery and evacuation of the distressed aircraft from the crash site to allow for a detailed wreckage examination.”

The NSIB said it has officially activated its investigation protocols in line with its statutory mandate

The Director-General of NSIB, Capt. Alex Badeh Jr., sympathised with the management of Skypower Express over the incident and expressed relief that no lives were lost.

Badeh Jr. added that the Bureau’s investigation team is already coordinating with relevant authorities to secure the crash site and commence a detailed investigation into the cause of the accident.

Two days ago, 11 persons narrowly escaped death as a private jet crash-landed at Mallam Aminu Kano International Airport, Kano, on Sunday morning.

The occupants, including passengers and cabin crew, were safely evacuated amid an intense atmosphere, eyewitnesses told The Guardian.

The private jet, owned by Flybird Aviation, crash-landed at about 9:30 a.m. while approaching Kano Airport en route to Abuja.

The incident attracted urgent attention, with emergency staff and other stakeholders converging at the runway to render rescue operations.

The management of the Federal Airports Authority of Nigeria (FAAN) is yet to release an official statement on the incident. Unofficial sources disclosed that the passengers have been taken to an unknown destination.

Several aircraft incidents have occurred at Kano Airport, with several lives lost.

The last incident occurred in May 2002, when an EAS Airline aircraft departed the runway at Aminu Kano International Airport at 1:29 p.m. local time en route to Lagos.

Headline

Musk Breaks Record As First Person Worth Over $600 Billion

Published

1 day ago

December 16, 2025

Editor

Elon Musk, Chief Executive Officer of SpaceX, Tesla, and xAI, has reached a new personal wealth milestone, surpassing a net worth of $600 billion, driven primarily by a recent valuation increase of SpaceX.

The development makes Musk the first individual in history to exceed the US$600 billion threshold.

According to Bloomberg’s Billionaires Index, Musk’s net worth stood at approximately $638 billion as of 15 December 2025, with the increase largely attributed to SpaceX, which was recently valued at around $800 billion following an insider share sale.

The privately held aerospace company, based in Starbase, Texas, is now considered the most valuable private firm globally, significantly boosting Musk’s personal holdings.

Musk’s stake in Tesla, estimated at roughly 12 per cent, is valued at nearly $200 billion, while his majority ownership of xAI Holdings is estimated at $60 billion.

Collectively, these assets place him on track to potentially approach US$700 billion, widening the gap between him and the world’s second-richest individual, former Google CEO Larry Page, valued at $265 billion.

The SpaceX valuation comes ahead of a projected public listing in 2026, which could see the company valued at approximately $1.5 trillion.

“Other shareholder meetings are snooze-fests but ours are bangers. Look at this. This is sick,” Musk said in November during Tesla’s shareholder meeting, referring to a performance-linked pay package approved by investors.

He added, “I super appreciate it.” The package, potentially worth up to US$1 trillion in stock, is tied to market-capitalisation and operational milestones over the next decade.

SpaceX’s Starlink satellite network has also contributed to investor confidence. The company continues to expand high-speed internet access to underserved regions worldwide.

Chad Gibbs, Vice President of Starlink Operations, stated that the satellite technology “bypasses the need to build massive amounts of infrastructure,” allowing broader and faster connectivity.

Musk’s ascent in personal wealth follows years of strategic risk-taking and long-term planning, with Tesla’s focus on electric vehicles, battery technology, and autonomous systems laying the foundation for his financial growth.

Analysts note that the combination of SpaceX’s soaring valuation, Tesla’s long-term incentives, and Musk’s diverse portfolio underpins his current status as the world’s wealthiest individual.

Headline

South Korea, Japan Protest China, Russia Aircraft Incursions

Published

1 week ago

December 10, 2025

Editor

South Korea and Japan reacted furiously on Wednesday after Chinese and Russian military aircraft conducted joint patrols around the two countries, with both Seoul and Tokyo scrambling jets.

South Korea said it had protested with representatives of China and Russia, while Japan said it had conveyed its “serious concerns” over national security.

According to Tokyo, two Russian Tu-95 nuclear-capable bombers on Tuesday flew from the Sea of Japan to rendezvous with two Chinese H-6 bombers in the East China Sea, then conducted a joint flight around the country.

The incident comes as Japan is locked in a dispute with China over comments Prime Minister Sanae Takaichi made about Taiwan.

The bombers’ joint flights were “clearly intended as a show of force against our nation, Defence Minister Shinjiro Koizumi wrote on X Wednesday.

Top government spokesman Minoru Kihara said that Tokyo had “conveyed to both China and Russia our serious concerns over our national security through diplomatic channels”.

Seoul said Tuesday the Russian and Chinese warplanes entered its air defence zone and that a complaint had been lodged with the defence attaches of both countries in the South Korean capital.

“Our military will continue to respond actively to the activities of neighbouring countries’ aircraft within the KADIZ in compliance with international law,” said Lee Kwang-suk, director general of the International Policy Bureau at Seoul’s defence ministry, referring to the Korea Air Defence Identification Zone.

South Korea also said it deployed “fighter jets to take tactical measures in preparation for any contingencies” in response to the Chinese and Russian incursion into the KADIZ.

The planes were spotted before they entered the air defence identification zone, defined as a broader area in which countries police aircraft for security reasons but which does not constitute their airspace.

Japan’s defence ministry also scrambled fighter jets to intercept the warplanes.

Beijing later Tuesday confirmed it had organised drills with Russia’s military according to “annual cooperation plans”.

Moscow also described it as a routine exercise, saying it lasted eight hours and that some foreign fighter jets followed the Russian and Chinese aircraft.

Since 2019, China and Russia have regularly flown military aircraft into South Korea’s air defence zone without prior notice, citing joint exercises.

In November last year, Seoul scrambled jets as five Chinese and six Russian military planes flew through its air defence zone.

Similar incidents occurred in June and December 2023, and in May and November 2022.

Meanwhile, Tokyo said Monday it had scrambled jets in response to repeated takeoff and landing exercises involving fighter jets and military helicopters from China’s Liaoning aircraft carrier as it cruised in international waters near Japan.

It also summoned Beijing’s ambassador after military aircraft from the Liaoning locked radar onto Japanese jets, the latest incident in the row ignited by Takaichi’s comments backing Taiwan.

Takaichi suggested last month that Japan would intervene militarily in any Chinese attack on the self-ruled island, which Beijing claims as its own and has not ruled out seizing by force.

AFP