Uncertainty looms in Nigeria’s power sector as Minister Adelabu delays policy direction

Nigeria’s power sector faces a cloud of uncertainty as stakeholders eagerly await policy direction from Minister of Power, Adebayo Adelabu, who took office two months ago. In September, Adelabu announced the government’s intention to add 20,000 megawatts of electricity to the country’s grid, which currently struggles with a decade-old 4,500MW capacity.

The proposed target received mixed reactions from stakeholders, with some considering it achievable and others viewing it as a political statement. However, the Minister is yet to unveil a blueprint outlining the strategy for achieving this additional electricity capacity.

While Adelabu has consistently assured Nigerians of President Bola Ahmed Tinubu’s commitment to providing adequate and reliable electricity, energy experts argue that concrete policy documents, not political statements, are necessary to address the chronic issues plaguing the power sector.

The power sector’s woes span the entire value chain, encompassing generation, transmission, and distribution, leading to frequent grid collapses. Despite a population of over 200 million people, Nigeria has struggled with a daily electricity output of 4,500-5,000 megawatts.

Experts assert that the lack of a clear policy blueprint for the power sector hinders efficient implementation of the government’s plans. Kunle Olubiyo, an industry analyst, insists that a comprehensive review of the sector is necessary, especially with the expiration of Performance Agreements and Licensee Moratorium on November 1, 2023.

Similarly, energy expert Joseph Eleojo criticizes the Minister’s proposed target of adding 20,000MW, calling it inadequate for Nigeria’s population. He advocates harnessing solar and hydro resources across the country to generate electricity, empowering local governments to contribute to electricity generation and distribution.

A former managing director in Nigeria’s power sector emphasizes the importance of precise strategies to achieve the 20,000MW target, urging the government to present a concrete plan with detailed components. The Minister’s ambitious three-year timeline to reach this target is questioned, given the country’s prolonged struggle with low generation capacity.

In conclusion, stakeholders emphasize the need for a comprehensive policy framework, clear strategies, and effective methods to address Nigeria’s power challenges and ensure reliable electricity supply for its citizens.