Incessant grid collapse, infrastructure vandalism heighten power sector woes in 2024

… Minister fails on the 6,000MW generation target

Nigeria’s power sector in 2024 was marred by incessant grid collapse, and infrastructure vandalism, among several lows, which showcased the age-long weakness in the sector. There were also some highs, like the signing into law, of the electricity bill by President Bola Tinubu, as the government struggled to navigate challenges and keep the electricity sector afloat.

Here are some activities that highlighted the performance of the sector led by Adebayo Adelabu, minister of power.

Signing of electricity bill into law

President Bola Ahmed Tinubu set the tone for the sector with the signing of the Electricity Bill 2023 into law in February 2024. With the Act, power generation, transmission, and distribution were decentralized, empowering subnationals and individuals to operate in the sector.

The Act also seeks to address the development and environmental concerns of host communities and sets aside five per cent of the actual annual operating expenditures of power-generating companies (GENCOs) from the preceding year for the development of their respective host communities.

With the implementation of the Act so far, 7 states, including Edo, Enugu, Ekiti, Imo, Ondo, Oyo, and Lagos states have been granted regulatory autonomy over their electricity market.

The Nigerian Electricity Regulatory Commission (NERC) has transferred regulatory authority to these states, aiming to enhance local governance of electricity supply and potentially improve service delivery and efficiency within their respective markets

Tariff increase for Band A customers

The federal government, through the Nigerian Electricity Regulatory Commission (NERC) in April, ordered the immediate upward review of electricity tariffs to N225/kWh from N68/kWh, for just customers under the Band A feeder.

According to Musiliu Oseni, vice chairman of NERC who made the announcement, Band A customers are those offered an average daily electricity supply of 20 hours, representing about 15 per cent of the population but consume 40 per cent of the nation’s electricity.

Adebayo Adelabu, minister of power said the tariff hike was necessary to boost the liquidity in the nation’s power sector which remains a critical issue, exacerbated by inefficiencies, outdated infrastructure, and poor revenue collection especially from significantly influenced by an estimated 8 million unmetered customers.

Adelabu also explained that there has been a funding gap in the sector, especially as the generation companies have been unable to pay for the gas needed to generate power.

Grid Collapse

The national grid has experienced a total of 12 collapses so far in 2024, revealing weak and obsolete infrastructure and a lack of investment among other issues in the sector.

The frequent grid collapse according to power generation companies has led to huge commercial and technical losses over the years, with both the Kainji and Jebba hydropower plants recording over N30.55 billion loss to grid failure between 2022 and 2024.

However, the federal government, as part of its efforts towards ensuring stability, hinted at plans to establish separate grids to serve Nigerians at the regional levels.

“Given the weakness, the dilapidation and obsolescence of the existing grid, we believe that we need a backup grid that will serve as a failover option to the existing grid. If anything happens to the existing grid, there will be a backup option,” the power minister stated.

Infrastructure vandalism 

In 2024, the Transmission Company of Nigeria (TCN) reported over 13 cases of vandalism on power transmission infrastructure across the country, impeding power supply to citizens.

Expressing concerns over the alarming rise in vandalism of transmission installations across the country, the TCN pointed out that the growing threat urgently requires the cooperation of all citizens, particularly those in host communities where these installations are located.

It noted that increased vigilance from everyone is essential to combat the menace, as failure to do so will leave the power sector in a perpetual state of repairing damaged infrastructure.

“TCN has consistently engaged security operatives, host communities, and local vigilante groups in response to this issue. However, it is crucial that everyone works together to curb or eliminate the increasing attempts by vandals to damage transmission lines and cables, while also ensuring that stolen items are not sold in our markets,” it noted in a statement.

Minister fails on 6,000mw target.

Adebayo Adelabu, Minister for Power, has failed to achieve the 6,000 megawatts target, which he set to achieve by December 2024.

At several engagements during the year, he had assured that efforts were ongoing to achieve this target. However, BusinessDay checks showed that the highest generation on the grid so far has been 4,273mw.

Speaking to BusinessDay on the government’s plan to achieve the 6,000MW target, Bolaji Tunji, Special Adviser on Strategic Communication and Media Relations, said that the government remains committed to the set target. He, however, blamed the impact of several cases of vandalism as a setback to the government’s efforts to ensure efficient power supply.