An increase in electricity prices by nearly three times has sparked a backlash in Nigeria. The decision to remove electricity subsidies is part of President Bola Tinubu's reform drive to ease pressure on the economy as the government targets up to 2.6 billion U.S. dollars from the subsidy removal.
Related stories: Consumers in Nigeria upset at electricity rate hike
Nigeria to cut electricity subsidy to ease pressure on public finances
A sudden hike in electricity rates in Africa's most populous country, Nigeria, has sparked a backlash.
Until now, Jude Okafor has spent an average $25 on electricity to run a frozen fish and meat business that he started in 2021. But since last week, when the government announced a rate hike of nearly 300 percent for electricity, Okafor says running his business has been tough.
"There is no escape. Light has gone high, fuel has gone high. And for a businessman, there's no way we can cope with that,” Okafor said. “If there's no light or fuel to ice our fish, what are we going to do? Our business is running down. This is [a] first-class act of wickedness."
The Nigerian Electricity Regulatory Commission (NERC) announced the price change last Wednesday and said only its bigger power consumers, about 15 percent overall, would be affected by the subsidy cut.
Authorities said consumers in that category enjoy up to 20 hours of electricity a day and that the rate hike was only fair to customers who receive fewer hours of light.
The decision to remove electricity subsidies is part of President Bola Tinubu's reform drives to ease pressure on the economy.
Authorities argue that state-controlled electricity rates are too low to attract new investors or allow distribution firms to recover their costs, leaving the sector with huge debts.
Economic analyst Ogho Okiti says the government’s move is a good one.
"The government is not able to pay those subsidies on time, and because they're not able to [pay] them on time, gas companies are withdrawing their gas supplies,” Okiti said. “The timing is right. I think the government had waited till April to do this because they expect power supply to improve from now because of [the] rainy season."
But the decision is being criticized by many, including businesses, manufacturers and workers' unions.
This week, the Abuja chapter of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, or NACCIMA, said the decision would threaten the survival of many thousands of businesses already struggling to cope with soaring inflation.
"First of all, the timing is wrong,” said Dele Oye, national president of the NACCIMA. “We all know that electricity is underpriced, but to some extent, there must be some level of subsidy. There's nowhere in the world where there's no subsidy. We cannot compete if we have to pay everything at market value when we don’t see market value service from the government. We do our roads. We do our security as investors."
Nigeria last revised electricity rates four years ago. Authorities say the country could save up to $2.6 billion from the subsidy removal.
But a similar reform applied on petrol last year worsened a cost-of-living crisis for many Nigerians after the annual rate of inflation rose to more than 30 percent — its highest level in three decades.
Critics will be watching to see how this newest subsidy removal unfolds.
By Timothy Obiezu, VOA
Related stories: Nigeria to cut electricity subsidy to ease pressure on public finances
Nigeria plans to axe an electricity subsidy for 15% of consumers to reduce its 3.3 trillion naira ($2.6 billion) cost, part of a series of reforms to ease pressure on public finances, presidential spokesperson Bayo Onanuga said on Tuesday.
Onanuga said the government was under pressure to allow a price increase in the electricity sector as it only budgeted 450 billion naira for the subsidy this year.
He did not say when the tariff increase would come into effect, but said that when it did the government expected to save close to 1.1 trillion naira per year.
Nigeria last reviewed electricity tariffs in 2020, Onanuga said, adding the proposed increase would help businesses recover costs and boost investment.
"With the huge subsidy burden and high cost of gas ... the current electricity tariff is not realistic," he said.
President Bola Tinubu embarked on Nigeria's boldest reforms in decades last year after he scrapped a popular but costly fuel subsidy and allowed the currency to devalue sharply.
The reforms Tinubu hopes will revive growth in Africa's biggest economy have stoked inflation to more than 30% and worsened a cost of living crisis, angering workers.
Onanuga said only 15% of consumers, accounting for 40% of electricity consumption, would be affected.
Nigeria's power sector faces a myriad of problems including a failing grid, gas shortages, high debt and vandalism. The country has 12,500 megawatts of installed capacity but produces only about a quarter of that, leaving many reliant on expensive diesel-powered generators.
Also, state-controlled power tariffs are too low to allow distribution companies to recoup costs and pay generating companies - leaving the sector with ballooning debts.
Onanuga said the government would consider helping generating companies to offset around 1.5 trillion naira of debt owed to the country's bulk electricity purchaser.
By Felix Onuah, Reuters
Related stories: Nigeria thrown into darkness as power grid collapses
Video - Nigeria SMEs turn to alternative energy sources to address chronic power crisis
Nigeria was thrown into darkness on Thursday afternoon following the collapse of the electricity grid controlled from Osogbo, Osun State, around 4:32 p.m.
A source in one of the distribution companies (DisCo) said the feeders for most DisCos nationwide were out of supply.
The development, the source added, has left virtually all franchise areas for DisCos across the 36 states in darkness.
According to the source, as of 4p.m, the grid output was 2984 megawatts. But by 5 p.m., the 21 plants on the grid had zero output.
In February, a grid collapse also left the nation in darkness.
A last check with the source when filing this report revealed that Azura was the only plant on the grid with an output capacity of about 54 megawatts.
Egbin, Afam, Geregu, Ibom Power, Jebba, Kainji, Odukpani, and Olorunsogo, among other plants, all had zero output.
In November 2013, the federal government privatised all generation and 11 distribution companies, with the FG retaining the ownership of the transmission company. This was to improve efficiency in the sector.
However, since privatisation, the grid has collapsed more than 140 times.
By Olawunmi Ojo, Premium Times
Related stories: Video - Nigeria SMEs turn to alternative energy sources to address chronic power crisis
Video - Nigeria suffers from most power cuts in the world
One such small business owner operates a hotel in Nigeria's capital, Abuja. He says he lost a lot of business due to electricity issues. But an investment of 1,000 U.S. dollars in converting his electrical system to solar power is helping to lure customers back.
Related stories: Sovereign fund of Nigeria to pilot development of 20 megawatts solar plant
Video - Nigeria suffers from most power cuts in the world
Fifth electricity transmission line vandalised in one month in Nigeria
Nigeria's sovereign fund plans to build a 20 megawatts solar power plant in partnership with a local firm, first phase of a 300 megawatts project, the country's Vice President Kashim Shettima said on Tuesday.
Shettima did not disclose the cost of the project or when construction will start.
Nigeria, with a population of more than 200 million people, has installed power generation capacity of 12,500 megawatts (MW) but produces a fraction of that, leaving millions of households and businesses reliant on petrol and diesel generators.
The vice president said on Tuesday in Abuja at the signing of the joint venture between the Nigerian Sovereign Investment Authority (NSIA) and North South Power (NSP) Company Ltd for the establishment of the Shiroro Generating Company, the country's pioneer on-grid solar-hydro hybrid project.
The Shiroro Generating Company is hybrid project is located in Shiroro, in Nigeria's northwest of Niger state.
Shettima said the 20 megawatt pilot project is embedded within a 300 megawatt solar programme, to be co-located within NSP's existing 600 megawatt Shiroro Hydroelectric Power Plant concession area in Shiroro, Niger State.
"As a nation, our resolve is to take proactive steps to diversify our energy sources, reduce our carbon footprints and ensure a more sustainable future for generations to come," the vice president said in a statement.
"This project will catalyze the realization of other hydro-solar projects and serve as a test case for deployment of solar energy on to the national grid."
Related stories: Fifth electricity transmission line vandalised in one month in Nigeria
Video - Nigeria suffers from most power cuts in the world
The Transmission Company of Nigeria (TCN), says one of its critical infrastructure, the Shiroro-Katampe 330 Kilo Volt (kV) transmission line has been vandalised.
TCN’ s General Manager, Public Affairs, Ndidi Mbah, said this in a statement in Abuja on Sunday.
According to Ms Mbah, this is the fifth of such incident between February and March.
Ms Mbah said that at approximately 9 a.m. on Sunday, the Shiroro-Katampe transmission line experienced a trip.
She said that following initial investigations, TCN engineers attempted to restore operation but were unsuccessful.
”Subsequently, efforts were made to identify the fault location. Hence, linesmen were dispatched to physically patrol the suspected area.
”During the fault tracing process, the vigilante team leaders in the vicinity notified TCN linesmen of vandalism along the transmission line.
” The company’s personnel confirmed the vandalisation of the transmission line 1, from Towers 244 to 245, and the conductors stolen,” she said.
According to her, the company is currently mobilising for conductor replacement, pending the completion of security operations at the site.
“The second line remains fully operational, in conjunction with the Gwagwalada 330kV line serving the Kukwaba-Apo axis.”
She said that the wheeling capacity of TCN towards Abuja and environs would be enhanced by the Lokoja – Gwagwalada 330kV transmission line.
”The company is working hard to minimise the adverse effect of these acts of sabotage on bulk power supply to Abuja and environs.
”This incident adds to a series of vandalism incidents recorded by TCN in February, including the destruction of Tower 70 along the Gwagwalade-Katampe transmission line on Feb. 26.
"Other incidents include the vandalisation of towers 377 and 378 along the Gombe-Damaturu 330kV transmission line on Feb. 23,” she said.
Ms Mbah said that there was also an attack on towers 145 to 149 and 201 to 218 along the Owerri-Ahoda 132kV transmission line on 15 February.
She said that on 1 February, Tower 388 along the Jos-Bauchi 132kV single circuit transmission line also collapsed due to vandalism.
According to Ms Mbah, these acts of sabotage are unacceptable. She urged relevant security agencies and host communities to collaborate in apprehending the perpetrators.
"Protection of the nation’s transmission infrastructure is paramount, and collective efforts are required to curb these incidents.
"The company calls on all Nigerians to assist in reporting such acts of vandalism. Electricity infrastructure is a national asset, and safeguarding it is a collective responsibility,” she said.
Related story: Video - Nigeria suffers from most power cuts in the world
"Our main reasons for building electric vehicles are the high cost of mobility, cost of energy and carbon emissions," Mustapha Gajibo, Founder and CEO of African Motor Works, tells SCENES.
The young business owner's interest in electrifying Nigeria's transport options was sparked by the constant problems with the country's electricity supply.
"We spent weeks, sometimes months, even up to a year without electricity. So that has really motivated me to come up with this company," explains Mustapha.
The start-up company manufactures 200 vehicles monthly and produces mass transit vehicles such as large buses, minibuses and tricycles. Each vehicle has a simple battery-swapping system and can be fully charged in less than 40 minutes.
African Motor Works employs 24 workers and plans to expand its workforce. According to the electric vehicle creator, building a solid team is the key to his company's success.
"I don't call them staff. I call them family. Whatever glory we achieve, we achieve together," says Mustapha.
The reputation of African Motor Works is gaining momentum in Nigeria, and Mustafa hopes his venture will inspire other manufacturers across Africa. He dreams of one day seeing his African vehicles driving through the streets of New York, Beijing and other cities worldwide.
By Gregory Ward & Hillary Ebele Nnoruka, EuroNews
Related story: Video - Nigerian engineering students build electric car
The latest report by the International Energy Agency ranked Nigeria first in the world for the most power cuts. The country has for years struggled with challenges in its electricity sector due to limited grid infrastructure and underinvestment which has hindered economic development.
CGTN
Related stories: Video - Nigeria grapples with higher electricity prices amid supply constraints
Power being restored to Nigeria after nationwide blackouts
Government in Nigeria struggling to end perennial electricity challenge
LAGOS, Jan 25 - Nigeria's Mainstream Energy, which already runs two of the country's biggest hydroelectric plants, has begun operating a new Chinese-funded facility, nearly a year after winning the concession, the utility said on Thursday.
Mainstream Energy Solution Ltd said its subsidiary Penstock Energy Ltd is running the new 700 megawatts plant in Zungeru, central Nigeria, which has been built with a $1.3 billion loan from China.
Nigeria's privatisation agency, the Bureau of Public Enterprises (BPE), last February awarded the concession to Mainstream Energy, which will pay the Nigerian government $70 million annually over three decades to operate the plant.
"This is where the real work starts in ensuring that the asset is managed in accordance with international standards," Mainstream Energy CEO Audu Lamu, said in a statement on Thursday.
Over the last decade, China has been active in Nigeria, providing finance through its development bank to build infrastructure including rail, airports, and power generation plants.
The Mainstream Energy-run Kainji and Jebba hydroelectric plants have a combined output of 1,338 megawatts which accounts for about 33% of Nigeria's current 4,000 megawatts power generation.
Much more is needed as millions of households and businesses suffer frequent blackouts.
By Isaac Anyaogu, Reuters
Related stories: Video - Nigeria grapples with higher electricity prices amid supply constraints
Nigeria to sell power distribution firm over $130 million debt
Consumers of locally-produced goods in Nigeria are facing higher prices due to unreliable electricity supplies. Poor and irregular power is causing businesses to use costly alternative sources of energy which in turn, impact production outlays. Experts say Nigeria's government must address its electricity problems to spur economic growth and development.
Related story: Nigeria to sell power distribution firm over $130 million debt
Nigeria's electricity regulator has put up for sale the sixth largest power distribution utility over a $130 million debt, less than two years after the lenders who took over the company failed to turn it around and make it profitable.
Africa's biggest economy, Nigeria, has 11 power distribution companies but they are struggling to remain profitable because of lack of capital and sub-economic tariffs imposed by the Nigerian Electricity Regulatory Commission (NERC).
Kaduna Electricity Distribution Plc (Kaduna Electric) is one of 18 successor companies created following the privatisation of the defunct Power Holding Company of Nigeria in 2013 and sells electricity in four northern states.
The utility owes 110 billion naira ($130 million), NERC said in a notice on Monday, to companies including the Nigerian Bulk Electricity Trader and power generation firms. The regulator said it now considered the company a 'failing licensee', allowing NERC to dissolve its board using a law passed last year.
Kaduna Electric was taken over by African Export-Import Bank (Afreximbank) and local lender Fidelity Bank in July 2022 but they have struggled to improve its financial performance. The Nigerian government through its Bureau of Public Enterprises also owns a 40% stake.
NERC said it had appointed an administrator and special directors to manage Kaduna Electric in the interim and sell its assets to the highest bidder.
Nigeria, Africa's most populous nation of more than 200 million people, produces a fraction of its installed power generation capacity of 12,500 megawatts, leaving millions of households and businesses reliant on private generators for electricity.
By Isaac Anyaogu, Reuters
Nigeria's electricity distribution companies reported "a total system collapse" on Thursday after a fire on a major transmission line, causing widespread blackouts across Africa's biggest economy, before power slowly started to return.
Adebayo Adelabu, minister for power, said fire had caused an explosion on a transmission line connecting the Kainji and Jebba power plants in north central Niger state, tripping the grid.
"The fire has been fully arrested and over half of the connections are now up and the rest will be fully restored in no time," Adelabu said in a statement.
Power generation fell to zero in the early hours but had risen to 1,341 megawatts (MW) by 1400 GMT, still well below the daily average of 4,100 MW, data from the Transmission Company of Nigeria (TCN) showed.
TCN did not respond to a request for comment.
Grid power is erratic in Nigeria, a major oil and gas producer, forcing households and businesses including oil firms and manufacturers to resort to diesel and petrol generators.
"The cost of fuelling a generator is eating into our finances and, as a tech business that relies on power, this is a heavy burden to bear," said Dickcion Bolodeku, an executive at technology firm Bayelsa Tech Hub in the southern oil-producing Bayelsa state, noting that President Bola Tinubu removed a subsidy on fuel in May.
In Lagos, despite enduring power cuts on an almost daily basis, some people were surprised at the nationwide blackout.
Lagos-based Eko Electricity Distribution Company, one of the biggest, said grid power was being restored.
The grid collapsed at least four times in 2022, which authorities blamed on technical problems.
Nigeria has 12,500 MW of installed capacity but produces about a quarter of that.
By Macdonald Dzirutwe, Reuters
Related story: National grid collapses in Nigeria causing blackouts across the country
Video - Government in Nigeria struggling to end perennial electricity challenge
Nigerians were on Thursday morning thrown into darkness after the national grid system collapsed.
The system is operated by the Transmission Company of Nigeria (TCN) from Osogbo, Osun State.
Some of the nation’s Distribution Companies confirmed that the grid collapsed in the early hours of Thursday, as most of their feeders are out.
The Enugu Electricity Distribution Company PLC (EEDC) in a statement said that “a total system collapse” occurred at 12:40 a.m. on Thursday.
“This has resulted in the loss of supply currently being experienced across the network,” the company said in a statement signed by Emeka Ezeh,
Head of Corporate Communications.
Due to this development, the distribution company said all its interface TCN stations are out of supply, and it will be unable to provide service to customers in Abia, Anambra, Ebonyi, Enugu and Imo States.
“We are on standby awaiting detailed information of the collapse and restoration of supply from the National Control Centre (NCC), Osogbo,” it said.
The General Manager, Public Affairs at the TCN, Ndidi Mbah, told PREMIUM TIMES Thursday morning that the public would soon be updated about the development.
By Mary Izuaka, Premium Times
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Government in Nigeria struggling to end perennial electricity challenge
Nigeria is fast-tracking efforts to boost its power capacity following years of stifled growth. President Bola Tinubu has signed into law legislation to overhaul Nigeria's power sector. The new plan will also allow Nigeria's state governments to license and regulate electricity markets within their jurisdiction.
The Nigerian government has taken several measures to improve the generation and distribution of electricity in the country. Despite some gains from the measures, the overall state of power supply has not significantly improved and experts say the government must change its approach.
Related stories: Nigeria runs on generators and nine hours of power a day
Nigerian cities in darkness as electricity grid collapses again
Nigeria is facing a huge financial headache caused by challenges in funding its record 49 billion U.S. dollar budget. The government has announced plans to privatize its power generation companies and use those proceeds to plug the budget deficit.
Related stories: Nigeria runs on generators and nine hours of power a day
Nigerian cities in darkness as electricity grid collapses again
President Mohammadu Buhari has said Nigeria would explore nuclear energy to generate electricity.
He also expressed unwavering commitment of his administration to energy mix through acquisition of nuclear power.
The President spoke at the just concluded International Ministerial Conference on Nuclear Power in the 21st Century held in Washington DC.
According to him, the Federal Government has activated the Nigeria Atomic Energy Commission, NAEC, as the national focal agency charged with the responsibility of developing the framework and technical pathway to explore, exploit and harness atomic energy for peaceful applications for the socio-economic development of the country.
He said Nigeria had also established the Nigerian Nuclear Regulatory Authority as an independent agency of government to ensure the safety of humans and the protection of the environment in the process of development, deployment and use of nuclear power.
Buhari, who spoke through the Minister of Science, Technology and Innovation, Sen. Adeleke Mamora, said like most other nations on the continent, Nigeria, with a population of over 200 million people, had a serious energy supply deficit, making it compelling for the government to critically look towards other energy options that were affordable, more environmentally friendly and sustainable.
Consequently, he disclosed that Nigeria had taken a decision to fully explore and harness nuclear energy resources for the generation of electricity, which would contribute to the country’s energy security through an appropriate energy mix
‘‘With the Small Modular Reactor, SMR, technology evolving, Nigeria sees this as a future game-changer in the nuclear industry and looks forward to a greater engagement with the IAEA and other global partners in the coming months and years to discuss the possibility of deploying SMRs in the country.
‘‘Several countries in Africa have genuine aspirations for industrialization and growth but the lack of reliable and sustainable base-load energy constitutes serious impediment.
‘‘Despite all the good policies formulated by African countries, the attainment of real growth and development has remained a mirage due to energy inadequacy. The possibility of nuclear power is now providing African countries with a better alternative for energy generation.
‘‘In this regard, Nigeria is currently engaged in discussions with some countries and vendors for our nuclear power project. Two potential sites for Nigeria’s nuclear power plant have been identified and necessary processes are being undertaken under the Integrated Nuclear Power Programme of Nigeria with the IAEA,” Buhari said.
While expressing Nigeria’s appreciation to DG Grossi and the entire staff of the IAEA as well as the leadership of the Nuclear Energy Agency, NEA, and other partners for arrangements put in place for the conference, the President assured of Nigeria’s full support and cooperation towards the attainment of the goals and objectives of the conference.
Vanguard, by Emmanuel Elebeke
Related story: Nigerian cities in darkness as electricity grid collapses again
Nigeria's national electricity grid collapsed on Monday leaving many parts of the country without power, electricity distribution companies said.
The grid has collapsed at least four times this year, which authorities blame on technical problems. Last month workers from the Transmission Company of Nigeria (TCN) went on strike and temporarily shut the grid.
Electricity distribution firms, known as Discos, said the outage happened earlier on Monday and they were working with TCN to restore supplies. They did not state the cause of the outage.
Nigeria has installed capacity of 12,500 megawatts but produces about a quarter of that, leaving many Nigerians and businesses reliant on diesel-powered generators. Diesel prices have soared since the start of the year.
The nation's sclerotic power grid, and its precarious energy supply, are often cited by businesses as a key issue hindering growth in Africa's most populous country.
By MacDonald Dzirutwe
Related stories: Nigeria runs on generators and nine hours of power a day
Nigerian cities in darkness as electricity grid collapses again
