The National Orientation Agency (NOA) recently shed light on the persistent issues causing national grid collapses in Nigeria, despite significant infrastructure upgrades. Nigeria’s national grid has a robust 13,610MW generation capacity and a transmission capacity exceeding 8,000MW, supported by facility upgrades, the Siemens project, and new developments like the 700MW Zungeru hydroelectric plant.
However, the weak link lies in the country’s power distribution system. Nigeria’s 11 electricity distribution companies (Discos) can only handle about 4,000MW, leading to recurring situations where generated power is lost due to distribution limitations. For instance, in early September, Discos rejected almost 1,400MW of the 5,313MW generated, exposing the fragility of the distribution infrastructure.
The government is implementing several initiatives to tackle these grid challenges. Through the Presidential Metering Initiative (PMI), the government aims to provide meters to every electricity consumer within three years, reducing reliance on estimated billings and strengthening revenue collection for system upgrades. As part of this initiative, N120 billion in funding has been allocated to address Nigeria’s metering gap, including the procurement of 3.5 million meters.
In addition, the Nigerian Electricity Regulatory Commission (NERC) approved cost-reflective tariffs for Band A customers, those receiving over 20 hours of daily power, allowing the Discos to cover operational costs more effectively. This tariff adjustment has already decreased the government’s electricity subsidy by over N253 billion in the second quarter of 2024. Furthermore, the Tinubu administration has dedicated $800 million toward constructing new substations and expanding distribution networks in strategic areas like Benin, Port Harcourt, Abuja, and Kano.
Another key element in the government’s plan according to the Agency, is decentralizing the grid. The recently signed Electricity Act grants states the authority to manage electricity generation, transmission, and distribution within their borders, allowing local power sources to contribute to the national power supply. According to the NOA, a decentralized grid is expected to boost reliability, reduce strain on existing infrastructure, and provide a pathway toward ending Nigeria’s recurring grid collapses.
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