A STATE OF EMERGENCY IN THE POWER SECTOR

It would signal a commitment to tackling the systemic problems head-on, argues SONNY IROCHE

The frequent nation-wide electricity grid collapse has become a major source of national embarrassment, with the grid collapsing nearly every week in recent times. This is totally unacceptable and unprecedented. And must, as a matter of urgency be brought to an end. 

Nigeria’s power sector stands at a crucial crossroads, with its struggles, which could be attributed to lack of capacity and funding, casting a long shadow over the nation’s development and prosperity, particularly in this age of global artificial intelligence and technological advancement. 

The challenges faced by the Nigerian electricity supply industry are not just technical; they reflect a deep-rooted need for a change in mindset among all stakeholders in transforming Nigeria’s power sector is not merely an option; it is a necessity to ensure a brighter future and in meeting some of the United Nations Sustainable Development Goals for one of Africa’s largest economies. 

The pervasive issues within the power sector, such as the frequent grid collapse, load shedding and vandalism of power infrastructure, are alarming and demand immediate and proactive actions.

Rampant corruption, insider trading, and inadequate funding have created a perfect challenging storm that hinders progress. For instance, the procurement practices within the sector have often been questionable, leading to the use of substandard products and equipment. This has not only resulted in financial losses but has also jeopardized the integrity of the entire electricity supply system. Individuals entrenched in the sector who warm and ingratiate themselves to every government in power have often benefited from contracts, that they often lack the capacity to execute, thereby creating a cycle of corruption that stifles development of the sector. Therefore, addressing these issues at the presidential level is essential for the restoration of capacity, efficiency and stability in the sector.

Declaring a state of emergency in the power sector has been long overdue and would signal a commitment to tackling these problems head-on. This declaration should be accompanied by the establishment of an Advisory Board made up of international development partners, with a proven track record in the power sector, representatives from the private sector, and knowledgeable and reputable former industry officials. Such a board would bring valuable experience and insights to the table, helping to identify and address the root causes of the sector’s failures and challenges. An example of one of the sector’s malaise has to do with destructive practices. For instance, the former National Electric Power Authority (NEPA) had four helicopters designed for monitoring the national grid, yet allegations suggest these helicopters were vandalized and grounded at the Murtala Mohammed Airport, Lagos to protect corrupt activities. A knowledgeable advisory board could help prevent such incidents, promote transparency, and restore preventive monitoring and maintenance. 

The importance of transparency and accountability cannot be overstated for a critical sector. During my four- year contract tenure as Executive Director of Finance and Accounts, in the Transmission Company of Nigeria (TCN), the experience of working there, without sounding immodest, demonstrated the positive impact of sound financial practices. The successful audit of TCN’s accounts, which had never been conducted before by an external firm like PwC marked a significant milestone in the history of the company. This achievement was made possible by the hard work of dedicated professionals in my team and the support of the Board of Directors, and Professor Chinedu Nebo, the then Minister of Power, under the Goodluck Jonathan administration. 

Witnessing the commitment of talented team members who worked tirelessly, often late into the night, highlighted the potential that exists within the sector. However, without effective leadership to guide these efforts, such potential may remain untapped, while the sector continues to flounder, with incessant power outages and system collapse. 

Leadership is the cornerstone of any successful initiative, be it public or private sector. The current administration would go down in history, and holds the key to leaving a significant legacy by prioritizing action over political considerations in fixing this behemoth power challenges which have bedeviled the country for decades. Forming an emergency Power Revival Committee would be one of the decisive steps towards revitalizing the Nigerian Electricity Supply Industry (NESI). This committee should have a clear mandate to improve and ramp up electricity availability and establish a stable, reliable, and efficient grid. It should be regionalized, and improving the current radial transmission system to the Loop system.

With over 200 million people in the country relying on a grid capacity barely reaching 6,000MW, the situation is both scandalous and unacceptable. A focused committee that either reports to the president or the vice president can generate the necessary momentum to bring about necessary change in the power sector. 

In conclusion, Nigeria’s power sector is in dire need of transformation. This has been the case since the 1960s, days of the Electricity Corporation of Nigeria (ECN). Addressing corruption, establishing a technical advisory board, and fostering effective leadership are all critical steps toward revitalizing the industry. The commitment to change must come from all stakeholders, as the future of the entire nation development trajectory depends on the ability to provide consistent, stable and reliable electricity. Taking decisive action now will not only benefit the current generation and in conformity with some of the United Nations, Sustainable Development Goals, but will also lay a strong foundation for future growth and development, especially in the field of technological and vocational expertise.

The time for change is now; Nigeria’s potential awaits realization. Nigeria’s renaissance will certainly translate to Africa’s renaissance and respectability in the comity of nations.

 Iroche was one time Executive Director, Finance & Accounts. Transmission Company of Nigeria