The Perennial Collapse Of National Grid
By Nurudeen Dauda
To start with, it is sad to note that the issue of “persistent” collapse of the National Grid is now being interpreted with different conspiracy theories among Nigerians. The politics of “Regionalism” practiced in the first Republic and our twenty eight years of military “Unitarism” made our socio-political thought to be largely guided as well as pre-dominated by “Regionalism” and “Unitarism” despite the fifty eight years of abolishment of Regionalism with states creation and the twenty six years of Democracy.
It baffles me to note that many Nigerians are not aware of the recent changes in the power sector. Under the “changes” in the power sector the “right question” to now always ask is, what is my “state governor” doing about power supply? Our quest for “permanent solution” on “electricity” for both “domestic” and “industrial”uses now rest on the effort and or commitment of our respective states governments.
The Electricity matters in Nigeria used to be in the Exclusive Legislative List (Federal powers) as provided by the 1999 Constitution as amended, but thanks to the 9th National Assembly (the Senate and the House Reps) and the 36 states Houses of Assembly and President Muhammadu Buhari who “passed” and “assented” a “Bill” into “law” which removed its from the Exclusive Legislative List (Federal powers) and transferred its to the Concurrent Legislative List (shared powers among the tiers of governments).
In March 2023 President Buhari signed the Fifth Alteration Bill (Bill No.17), the Bill altered the Constitution of the Federal Republic of Nigeria, 1999 as amended to allow states generate, transmit and distribute Electricity in areas covered by the national grid; and for related matters. On the other hand, In February, 2024 President Tinubu signed the Electricity Amendment ACT 2024 which was presented by the 10th National Assembly into law.
The constitutional amendment by president Buhari meant that states can now participate in the Electricity supply business, which was previously the exclusive preserve of the Federal Government as administered by the Nigerian Electricity Regulatory Commission (NERC). In other words, states are allow to license the generation, transmission, and distribution of Electricity.
However, the Act signed by president Tinubu on the other hand, grants the power to generate, transmit, and distribute Electricity to states, companies, and individuals which marks an important development in Nigeria’s Electricity sector. The Act aims to break the monopoly in Electricity generation, transmission, and distribution at the national level.
This significant development involved three stages; one, the amendment of the 1999 Constitution which was done by president Buhari in 2023 ; two, the amendment of the Electricity Act which was done by president Tinubu in 2024 and the third and final stage requires individual states to create their laws for the state governors to sign those laws. The moment state passes its Electricity market regulation, the state as well as companies, and individuals within that state can generate, transmit and distribute electricity.
The 2024 Electricity Act allows anyone to construct, own or operate an undertaking for generating Electricity not exceeding 1 megawatt (MW) in aggregate at a site or an undertaking for distribution of Electricity with a capacity not exceeding 100 kilowatts (KW) in aggregate at a site, or such other capacity as the Nigerian Electricity Regulation Commission (NERC) may determine from time to time, without a license.
It worries me to note that, as a country we do not have “sufficient” Electricity generation, transmission, and distribution capacity even for “domestic” uses let alone for “Industrialization”. Stable power supply is a necessary precondition for Industrialization. Industrialization is a means for unemployment and poverty reductions in the society.
The United States of America with a population of about 390million generates 1,143,757 megawatts; South Africa with a population of about 59 million people generates 58,095 megawatts; Saudi Arabia with a population of about 35 million people generates 83,036 megawatts; and Nigeria with a population of over 200 million people only at peak generates about 7,421 megawatts without a corresponding capacities for transmission, and distribution.
The Power sector in Nigeria has three cycles:(1) Generating Companies (GENCOS), (2) Transmission Company of Nigeria(TCN) ,and (3) Distribution Companies (DISCOS). Each of the cycles largely depends on one another for the proper functioning of the system. If the generating companies generate the power, the power must be transmitted before the distribution companies could supply to the final or end users. The DISCOS will only supply to the final users what they receive from the transmission company and the transmission company will only transmit what they get from the GENCOS.
The new law presents an opportunity for serious and determine individual states governments to be self- sufficient in the Electricity sector for their development. Let individual states take advantage of this new law for their developments. There is a need for attracting both “public” and “private” sectors investments in the Electricity sectors of their respective states in order to transform their economies developments.
May God bless Nigeria!
Dauda can be reached at
nurudeendauda24@gmail.com, nurudeendauda24@yahoo.com and on blog: nurudeendauda.blogspot.com
