From 2015 to 2023, Nigeria allocated N3.2 trillion for electricity subsidies, and in 2024, an additional N1.6 trillion is projected to be spent. This accumulates to an electricity tariff shortfall of N4.8 trillion over a span of about nine years. Despite these substantial subsidies, the state of electricity supply in the country is deteriorating under […]
A power station
The unbundling and partial privatisation of the nation’s power sector in 2013 targeted a competitive market that would attract private investment, promote efficient management of the sector, increase power generation, as well as provide a reliable and cost-efficient power supply.
But eight years into the privatisation, only marginal improvement has been recorded in the area of increasing installed capacity for power generation; transmission network expansion, and roll out of pre-paid meters, etc.
On the flip side, operational generation capacity has considerably dropped; recovery of the cost of electricity production has remained poor, while revenue has continued to dip tremendously.