For the first time in decades, the federal government yesterday released a National Integrated Electricity Policy (NIEP) to drive the transformation of Nigeria’s power industry and ensure the return of over 60 per cent of manufacturing firms, which had exited the national grid.
At the event, where the Integrated Resource Plan (IRP) was also made public, in collaboration with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF), Minister of Power, Chief Adebayo Adelabu, stated that through the support of stakeholders and the execution of the Band ‘A’ policy, revenue generated from the power sector grew by 70 per cent, from N1.05 trillion to about N1.7 trillion in 2024.
Nigeria’s power sector has long been plagued by numerous challenges, creating a significant bottleneck to economic growth and industrialisation. Despite its vast energy resources, including abundant fossil fuels and renewable energy potential, the country struggles with unreliable electricity supply, leading to frequent blackouts and reliance on expensive alternative power sources, such as generators.
Many power plants, especially thermal stations, depend on gas, but the inadequate supply of this critical resource – caused by pipeline vandalism, non-payment issues, and regulatory bottlenecks – has often led to underperformance.
Besides, the Transmission Company of Nigeria (TCN), which oversees the national grid, has limited capacity to handle the generated power. In part, the grid infrastructure is generally outdated and fragile, frequently collapsing under stress and causing nationwide blackouts.
On the distribution side, power supply remains unreliable due to technical and commercial losses, estimated at over 40 per cent. (Thisday)