Industry experts are calling on the government to address the persistent issues of poor power supply and the frequent collapses of the national grid with sustainable solutions. They suggest establishing a favorable regulatory framework, extending concessionary credit to industry operators, offering import waivers, and partnering with the private sector for collaborative policy formulation and execution.
Dr. Chinyere Almona, director-general of the Lagos Chamber of Commerce and Industry (LCCI), voiced serious concerns about the rising number of national grid failures, which is the main source of hydroelectric power in Nigeria. She noted that the country has experienced eight grid failures this year, including three within a single week, raising alarms for the business community regarding the national grid’s declining performance.
Almona explained that the recent grid collapses were primarily due to transformer explosions, unexpected shutdowns at power generating stations, and other technical malfunctions. At present, the national grid generates about 4,500MW of electricity for over 200 million people, in stark contrast to South Africa, which produces approximately 50,000MW for just 59 million.
She questioned what insights have been gained from previous grid failures and restoration efforts, asserting that after numerous incidents, national grid managers should have identified the underlying causes and developed long-term solutions. Almona expressed frustration over the apparent lack of understanding among power sector regulators regarding these recurring failures, despite 105 collapses in the last decade.
Moreover, George Onafowokan, managing director of Coleman Wires and Cables, has urged Minister of Power Adebayo Adelabu to take immediate action regarding the outdated infrastructure that contributes to frequent national grid failures. He stressed the importance of replacing aged cables that have exceeded their useful life, which leads to inefficiencies in power distribution.
With the federal government’s formation of a six-member committee aimed at resolving Nigeria’s power challenges, Onafowokan emphasized the need to upgrade critical infrastructure. He highlighted that many existing cables are no longer suitable, causing repeated grid failures that have adversely impacted the manufacturing sector, pushing many businesses to resort to costly diesel generators.
Onafowokan called on the Minister of Power to implement a strategic, long-term solution that not only tackles infrastructure issues but also encourages localized power generation. He suggested establishing power clusters where industries can generate and share electricity within designated areas, claiming that decentralizing power production could help lower costs and provide businesses with more stable access to electricity.