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Nigeria’s power grid collapse and the economy

Electricity in Nigeria is no longer seen as a basic utility; it is viewed as a rare privilege. Once regarded as an unusual disruption, power grid collapses have become a routine nightmare. Nigerians have moved from wondering whether the lights will come on, to fearing how long they will stay on before the next blackout. 

The consequences of these frequent power failures are catastrophic, affecting the economy, industries, households, and even national morale.

 Nigeria’s power grid, originally designed for a much smaller population and economy, is now overwhelmed and unable to meet growing demand. Several factors contribute to frequent grid collapses: the infrastructure is outdated, with equipment several decades old and little investment in modernisation, making it prone to breakdowns.

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 While the country has the capacity to generate about 13,000 MW of electricity, it can only transmit and distribute roughly 4,000 MW due to technical inefficiencies, putting constant strain on the grid. Nigeria’s transmission system is described as “The weakest link” in the power supply chain, and even minor disturbances can cause widespread failures. 

Maintenance is often neglected, with substations and transmission lines left to deteriorate until they fail, resulting in long downtimes. Vandalism further complicates the situation, as power lines and components are regularly destroyed or stolen. 

The failures of our power grid have far-reaching economic consequences. Unreliable electricity costs the country billions of dollars annually, affecting sectors from manufacturing to education. Businesses, especially small and medium-sized enterprises (SMEs), are forced to rely on expensive petrol or diesel generators, raising production costs and shrinking profit margins. These higher operational costs are passed on to consumers, driving inflation. 

Similarly, unreliable power is a major deterrent for foreign investors, who are discouraged by the high costs and unpredictability of operating in Nigeria’s power-scarce environment. 

With a series of proposals including conducting a full audit to identify outdated transmission equipment that needs replacement, maintenance overhaul, improving grid monitoring with advanced systems for real-time fault detection, private sector investment, renewable energy integration, securing gas contracts, strengthening security measures, including IoT devices and surveillance, to protect infrastructure from theft and vandalism.

 If all this is being implemented, these recommendations could significantly improve Nigeria’s power sector and reduce grid failures. 

There is a growing sense of urgency surrounding Nigeria’s power crisis, and the government’s recent moves suggest that change might finally be on the horizon. However, fixing the grid will require more than just quick fixes and temporary measures. It will demand long-term investment, strategic partnerships, and the political will to see through difficult reforms. 

The question remains: will Nigeria’s leaders rise to the challenge and deliver the power needed to fuel the country’s growth, or will the lights continue to flicker in the dark?

To address Nigeria’s power challenges and secure its economic future, urgent actions are needed: investing in infrastructure modernisation to upgrade the power grid, diversifying energy sources with a focus on renewables.

Implementing policy and regulatory reforms to attract private investment, raising public awareness about energy efficiency and sustainable power, and enhancing security measures to protect power infrastructure from vandalism and theft will work miracles.

Until then, the lights will continue to flicker, and Nigeria’s economy will remain in the dark. The stakes have never been higher.

 

Haroon Aremu Abiodun can be reached at [email protected]

 

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