By Fred Nwaozor
Over the years, the Nigeria's power sector has remained a section that seems pathetic in spite of the trillions of naira being reportedly allocated therein. This ugly scenario has consistently made experts and analysts restless and sleepless.
This analysis is centred on the imperative steps needed to be taken by both government and stakeholders towards boosting the functionality and scalability of the said sector.
For Nigeria’s power sector to become functional and scalable, the foremost requirement is policy consistency backed by a long-term national power master plan. Frequent policy reversals, weak enforcement, and political interference have discouraged investment and stalled reforms.
A stable framework with clearly defined generation, transmission, and distribution targets over 20–30 years would give investors confidence and allow institutions to plan infrastructure expansion sustainably.
Weak institutions have been a major bottleneck in Nigeria’s electricity sector. Regulatory bodies such as Nigerian Electricity Regulatory Commission (NERC) must be insulated from political pressure and empowered to enforce rules transparently.
Corporate governance within power companies ought to emphasize accountability, performance metrics, and professional management, ensuring technical and financial decisions are driven by expertise rather than patronage.
Electricity tariffs must reflect the true cost of generation, transmission, and distribution to attract investment and ensure sustainability. However, this must be balanced with social protection mechanisms such as targeted subsidies for low-income households. Without cost-reflective pricing, operators cannot recover costs, leading to underinvestment, poor maintenance, and eventual system collapse.
Nigeria must aggressively expand generation capacity beyond its current limits while diversifying energy sources. Gas-fired power should remain a backbone due to Nigeria’s vast gas reserves, and hydro, solar, wind, and biomass must be scaled up. A diversified energy mix improves resilience, reduces dependence on fossil fuels, and supports climate commitments while meeting rising demand.
Gas shortages remain a critical constraint to power generation in Nigeria. Addressing this requires investment in gas pipelines, processing facilities, and pricing reforms that make gas-to-power commercially viable. Ensuring security of gas infrastructure and enforcing gas supply obligations will stabilize generation and reduce frequent plant shutdowns.
Transmission remains the weakest link in Nigeria’s power value chain. Massive investment is needed to upgrade aging transmission lines, substations, and control systems. Adopting smart grid technologies and decentralizing transmission management can reduce system collapses and enable the grid to handle higher power volumes efficiently.
High technical and commercial losses undermine the entire power sector. Distribution companies must invest in network upgrades, transformer expansion, and feeder optimization. Equally important is the compelling need to address electricity theft through metering, monitoring, and enforcement, ensuring energy delivered translates into revenue collected.
Universal smart metering is essential for transparency, consumer trust, and revenue assurance. Metering eliminates estimated billing, improves payment discipline, and provides data for load forecasting. Local meter manufacturing should be encouraged to reduce costs, create jobs, and ensure scalability.
Centralized power generation alone cannot meet Nigeria’s vast and dispersed demand. Embedded generation, mini-grids, and off-grid renewable solutions should be expanded, especially in rural and peri-urban areas. These systems reduce pressure on the national grid while accelerating electrification and economic inclusion.
A functional and scalable power sector depends heavily on private capital. Government should focus on creating an enabling environment rather than direct operation. Transparent procurement, bankable power purchase agreements, and risk mitigation instruments will attract local and foreign investors while fostering competition and efficiency.
Nigeria must invest in human capital and local technical capacity across the power value chain. Training engineers, technicians, and system operators ensures long-term sustainability. Encouraging local manufacturing of cables, transformers, meters, and renewable components reduces import dependence and strengthens the domestic economy.
Digitalization can transform Nigeria’s power sector. Advanced metering infrastructure, energy management systems, predictive maintenance, and real-time grid monitoring improve reliability and efficiency. Data-driven decision-making allows operators to anticipate faults, optimize load distribution, and plan future expansions accurately.
The financial health of the power sector must be restored. Clearing legacy debts, improving payment discipline, and enhancing the creditworthiness of distribution companies are essential. Innovative financing models such as green bonds, infrastructure funds, and blended finance can unlock capital for large-scale power projects.
Power infrastructure is frequently vandalized, disrupting supply and increasing costs. A coordinated security strategy involving communities, law enforcement, and technology, such as surveillance and monitoring systems is necessary. Protecting assets ensures operational stability and investor confidence.
Ultimately, Nigeria’s power sector must be aligned with broader industrialization, digital economy, and climate goals. Reliable electricity underpins manufacturing, education, healthcare, and technological innovation.
By integrating power sector reforms into national development planning, Nigeria can build a functional, scalable, and resilient electricity system that supports sustainable economic growth. Think about it.
