Industry stakeholders are urging the government to find a sustainable solution to the ongoing issues of inadequate power supply and frequent national grid failures. They recommend creating a supportive regulatory environment, providing concessionary credit to operators in the sector, offering import waivers, and collaborating with the private sector for effective policy development and implementation.
Dr. Chinyere Almona, the director-general of the Lagos Chamber of Commerce and Industry (LCCI), expressed deep concern over the increasing frequency of national grid collapses, which is the primary source of hydroelectric power in the country. She pointed out that this year alone has seen eight grid failures, three of which occurred in just one week, highlighting the deteriorating performance of the national grid, which is critical for the business community.
Almona noted that recent collapses were largely due to transformer explosions, unexpected shutdowns of power generating stations, and other technical issues. Currently, the national grid produces approximately 4,500MW of electricity for over 200 million people, whereas South Africa generates around 50,000MW for about 59 million.
She questioned what lessons have been learned from past grid failures and restoration attempts, stating that after numerous incidents, grid managers should have identified root causes and implemented lasting solutions. Almona expressed concern that there seems to be no clear understanding of these issues among regulators in the power sector despite 105 collapses in the last decade.
Additionally, George Onafowokan, managing director of Coleman Wires and Cables, called on the Minister of Power, Adebayo Adelabu, to urgently address aging infrastructure that contributes to frequent grid failures. He emphasized the necessity of replacing outdated cables that have surpassed their operational lifespan, which leads to inefficiencies in the power distribution network.
Following the federal government’s establishment of a six-member committee to tackle Nigeria’s power issues, Onafowokan highlighted the importance of upgrading essential infrastructure. He noted that many cables currently in use are inadequate, resulting in frequent grid failures that severely affect the manufacturing sector, forcing many companies to rely on expensive diesel generators.
Onafowokan urged the Minister of Power to adopt a strategic long-term approach that addresses infrastructure challenges while promoting localized power generation. He proposed the development of power clusters where industries can generate and share electricity within specific regions, arguing that decentralizing power production could reduce costs and provide more reliable electricity access for businesses.