Over the past eleven years, Nigeria has only managed to add 760 megawatts (MW) to its national grid, increasing its power output to an average of 4,160MW by mid-2024. In stark contrast, the Dangote refinery, constructed in 2018, generates 1,500MW independently, highlighting the slow growth of the national power sector despite significant investments and a decade-old privatization initiative.
The persistent power shortages in Nigeria have been a longstanding issue, dominating political promises without substantial improvement. Analysts criticize the inefficiencies and poor management within the power sector, noting that many large conglomerates, including Dangote, generate their own electricity to bypass unreliable national supply. The country’s potential power production stands at 13,000MW, yet the aging grid delivers only about 4,000MW to over 200 million citizens, significantly lagging behind smaller economies like South Africa.
Business and manufacturing sectors in Nigeria heavily rely on self-generated power, spending billions on alternative energy sources due to inadequate supply from distribution companies. This energy crisis poses a significant threat to economic productivity and investment in the power sector. Experts emphasize the need for addressing fundamental issues, such as technical and commercial losses, to enhance efficiency and ensure cost-effective power distribution.
Source: Business Day