Nigeria’s Power Sector Still Far from Reform Goals, Says Ex-NSE President

The former NSE president, Tasiu Gidari-Wudil, has cautioned that the electricity sector in Nigeria is nowhere close to meeting the objectives of the 2005 reform act even though it is nearing almost two decades of policy reforms and privatisation.

Delivering a lecture at the 29th October Lecture of the NSE in Abuja, Gidarqi-Wudil noted that while Nigeria’s installed capacity rose from 6,000 megawatts in 2005 to over 13,000 megawatts as of 2023, available generation still lingers below 50 percent of capacity due to gas deficits, transmission issues, and inefficiencies across the value chain.

In his paper titled “Total Challenges Facing Nigeria and Sub-Saharan Africa: The Transformation of Our Power Sector,” he reinforced that infrastructural deficit, fiscal unsustainability, and customer dissatisfaction are still growth impediments.

“Reform is a long-term process requiring sustained commitment beyond political cycles,” he stated, adding that strong regulatory institutions, transparent tariffs, and stakeholder engagement are the keys if Nigeria is to realize its power requirements.

In his further observations, he conceded that the change has been slow and much less than expected. “By now, according to the Electric Power Sector Reform Act, we should have been way beyond 30,000 megawatts. The government could not fulfill its own expectation, while firms also could not, and that created market gaps now valued at trillions of naira,” he said.

He also pointed out internal distribution company failures such as meter bypass and unauthorized connections as key deficiencies. He called upon states to use new powers under the Electricity Act 2023 to create their own electricity markets.

Earlier, NSE president Margaret Oguntala explained the lecture was timely to coincide with Nigeria’s 65th Independence anniversary, terming it a day of reflection and new hope. According to her, engineers should step up to meet the challenge of solving Nigeria’s technical power issues.

In his stead, Group Managing Director of Sahara Power Group, Kola Adesina, represented by Head of Generation Godwin Emmanuel, said that as nice as some of the reforms’ advance have been, supply is still woefully behind demand. He called attention to cost-reflective tariffs, grid modernisation, and increased renewables integration as the priorities for reform next.