End in sight to decline in power supply?

We recall that on November 1, 2013, Nigeria’s power sector, which had operated for several decades as a state monopoly, with the federal government having the exclusive rights to own electricity generation, transmission and distribution facilities, saw the entry of private investors. There were hopes of better things to come. But, sooner than later the challenges inherited from the defunct Power Holding Company of Nigeria (PHCN) reared their heads to dampen the optimism.

Nigerians are yet to see the envisaged benefits of the privatisation because the system is still bedeviled by a week transmission network and gas supply shortfall to power plants, which stoked the intensity of power outage shortly after the new investors took over.

Although total national power generation, which had nosedived to about 3,000 megawatts (MW) late last year, rose beyond 4,000MW on February 8, 2014 on the back of the repairs of the Escravos gas pipeline, but it has not translated to appreciable improvement in electricity supply to businesses and homes.

The abysmal power supply situation, which has been largely attributed to frequent vandalism of gas pipelines, has no doubt taken a toll on businesses as their increased reliance on self-generation has bumped up their cost of production.

According to a recent poll by NOI Polls Limited, power supply worsened in the fourth quarter of 2013, with an average of 46 percent of Nigerians said to have received between 1 to 4 hours of continuous power supply daily, while 17 percent said they received absolutely “no light”.

In January, Chinedu Nebo, power minister stated that the federal government had given an ultimatum to the power investors and key operators in the sector to, as a matter of urgency, ensure that there was visible improvement in power supply in the country by June.

He said the immediate goal of the government was to ensure that those already getting between 12 and 14 hours of supply begin to enjoy between 16 and 18 hours, while major cities like Lagos and Abuja are being targeted for between 22 and 23 hours supply daily.

But daily electricity supply in many parts of the country, including Lagos, is far below 12 hours. The two distribution companies (Discos) in Lagos, in what is an acknowledgement of the deplorable low supply situation in the state and the strain on the lives and businesses of their customers, said they were working with relevant bodies and agencies to ensure the journey towards the era of sustainable, effective and stable supply is achieved soon.

To be sure, massive investment is required to bring about the much needed overhaul of existing infrastructure, investment in new technology and capacity-building to ensure stable power supply in the country.

We consider it a matter of utmost urgency to decisively address the issue of ‘crazy’ estimated billings to which consumers are subjected despite the poor supply through the provision of pre-paid meters by the Discos. This will help to cushion the impact of the decline in supply.