Nigerians are increasingly urging President Bola Ahmed Tinubu to invalidate the licenses of electricity distribution companies (Discos) due to the aggravated irregular power supply over the past three months, causing immense hardship for citizens. Despite paying for electricity that is rarely received, consumers across various states including Lagos, Enugu, Abuja, Edo, and Kaduna face persistent blackouts. With over a decade of post-privatization power sector failures, the situation has become distressingly common. Nigeria, with a population of over 200 million, has an alarming lack of electricity access, with 92 million people affected, making it one of the countries with the lowest electricity access globally.
Despite having a generating capacity of 22,000 megawatts, the actual generation has been consistently low, hovering between 4,000 and 5,000 megawatts for decades. In recent months, it has even dropped below 4,000MW. This chronic power shortage has severely impacted Nigerians, including businesses, with the Manufacturers Association of Nigeria estimating an annual loss of N10.1 trillion, nearly two percent of the GDP.
The government’s efforts to address the power sector crisis have been criticized for lack of transparency and effectiveness. Despite promises to resolve issues such as debts owed to gas companies and electricity subsidies, tangible progress remains elusive. The Minister of Power has threatened to revoke Discos’ licenses but has yet to provide a coherent policy direction for the sector.
Experts highlight the need for systemic changes, emphasizing the importance of strengthening institutions and empowering professionals within the sector. Suggestions include decentralizing the power sector, implementing targeted subsidies, enhancing transmission operations, and promoting private sector involvement. However, there is consensus that simply revoking Discos’ licenses may not address the underlying issues affecting all aspects of the power value chain, from generation to distribution.