Address electricity issues to curb poverty- Ex TCN boss

Usman Gur Mohammed, former managing director of the Transmission Company of Nigeria (TCN), says for the Federal Government to curb poverty, it must first address the nation’s electricity challenges as a foundation for driving economic growth.

Speaking at the 12th convocation lecture of Nile University of Nigeria in Abuja on Wednesday titled; ‘Sustainable Energy Solutions: Pathway to Nigeria’s Industrial Development,’ Mohammed highlighted how Nigeria’s electricity crisis has perpetuated poverty and undermined the nattion’s economic potential, particularly within the framework of the African Continental Free Trade Agreement (AfCFTA).

“For the next 100 years, we cannot compete with countries like Niger, Chad, and Cameroon if we don’t solve our electricity problem. With AfCFTA, businesses will relocate to countries with stable power, and Nigeria will lose its advantage as the largest market in Africa,” he said.

Mohammed emphasised that electricity is pivotal for economic development and poverty reduction, citing examples from countries like China, India, and the United States.

He argued that Nigeria’s inability to generate sufficient electricity has left the country vulnerable, with businesses struggling to survive under unstable and expensive power supply.

The former TCN boss identified policy missteps, inefficiencies, and the absence of market competition as key issues plaguing the electricity sector.

“We privatised without conducting necessary studies like the Aggregate Technical, Commercial, and Collection Loss (ATC&C) study or a least-cost transmission expansion plan. These oversights led to inefficiencies and left the sector unprepared for privatization,” Mohammed explained.

He also criticised the federal government’s reliance on the single-buyer model managed by the Nigerian Bulk Electricity Trading (NBET) Company, which he said has stifled competition and accountability in the sector.

“The single-buyer model was supposed to be transitional, but more than ten years later, we are still stuck with it. Subsidies have ballooned, with reports indicating that the power sector subsidy reached ₦1.9 trillion in just 11 months,” he said.

According to Mohammed, inconsistencies in Nigeria’s gas policies have also hindered affordable gas availability for power generation. He explained that historical priorities, such as reducing gas flaring and exporting gas, have left domestic power projects underfunded and under-supplied.

“The 2005 Gas Master Plan segregated pricing regimes, creating challenges for gas-to-power projects,” he noted.

He called for a complete overhaul of the power sector, urging the government to create a competitive electricity market and foster private investment.

“Reforms must focus on creating a competitive electricity market where participants can trade power as a commodity. This will not only drive efficiency but also lower costs for consumers,” he said.

He also advocated for the adoption of regional grids to improve reliability and reduce system collapses, stressing the need to revisit the Electricity Act to encourage market competition.

Mohammed urged that the government prioritise long-term, sustainable investment in power infrastructure to unlock economic growth and lift millions out of poverty. He warned that failure to act will perpetuate poverty, insecurity, and economic stagnation.

“Nigeria’s electricity issues go beyond infrastructure; they are at the heart of our economic future. If we don’t address them now, we will continue to face dire consequences,” he said.