Joseph Bakare
The Federal Government is putting measures in place to reinforce the nations power grid system after the system suffered repeated failures in recent times.
The National Economic Council (NEC), yesterday, during its monthly meeting in Abuja, announced a resolution to reinforce implementation of the National Electrification Strategy in a bid to end the constant collapse of the nation’s power grid.
Vice-President Kashim Shettima told members of the Council that access to energy was a fundamental right and not a privilege because electricity was the oxygen of economic growth.
Meanwhile, power generation companies have expressed concern over the adverse effects of frequent electricity grid collapses in the country, warning that the issue poses a significant threat to the power supply industry.
So far this year, the national power grid, has collapsed several times.
Speaking at a training workshop organized by the Association of Power Generation Companies (APGC), the association’s Chief Executive, Dr. Joy Ogaji, highlighted the significant mechanical and commercial impacts of grid collapses on generation companies (GenCos).
Ogaji revealed that the Kainji and Jebba hydro plants alone have incurred losses of N21.87 billion due to system instability this year.
She said: “Given the frequency of grid collapses in the country and the impact of it on our business we have thought it wise to provide clarification on how it affects our businesses.
“While we certainly need a huge jump in our electricity supply projection, it is imperative to preserve lives and equipment to sustain our rapid economic growth and meet the growing demand, we therefore need to make every effort to efficiently manage all stages of the value chain with intentional focus on maximizing efficiency in the entire electricity chain.
“Grid collapse poses a significant threat to Nigeria’s power sector, resulting in frequent disruptions, equipment damage, and substantial revenue losses for GenCos. Technically, grid collapse can cause catastrophic damage to generators, transformers, and other critical infrastructure, leading to prolonged downtime and costly repairs”.
She added: “Commercially, the impact is equally severe, as GenCos face reduced power sales, penalties for non-delivery (in bilateral and cross border trades), and increased operational expenses. The dwindling resources exacerbate these challenges, making it difficult for GenCos to maintain, repair, and replace damaged equipment, ultimately compromising the reliability and efficiency of the power supply”.
In his presentation, Engr. Jacob Barasuno, Operations Supervisor, Mainstream Energy, said frequent grid collapses have damaged many equipment at the Kainji and Jebba power plants.
Barasuno explained due to system instability GenCos were unable to meet monthly and annual power power generation targets which has in turn affected efforts to meet bilateral and other contractual obligations.
The National Economic Council in a move to rectify the situation has constituted a13-man Committee on National Electrification to help address the challenges in the power sector.
The Committee headed by Cross River State Governor, Bassey Otu, is to work towards deepening states’ engagements within the Electricity Reform Act 2023 and the National Electrification Strategy and Implementation Plan.
Following a presentation by the Managing Director of the Rural Electrification Agency (REA), NEC observed that Nigeria needed a reformed and diversified electricity system, noting that by empowering states, accessibility and affordability of electricity could be enabled, ensuring that all regions effectively meet their specific energy needs.
Members of the committee included Governors Dikko Radda of Katsina, Inuwa Yahaya of Gombe, Ademola Adeleke of Osun, Hope Uzodimma of Imo, and Caleb Mutfwang of Plateau.
Others were Ministers of Finance, Mr Wale Edun; Budget and Economic Planning, Sen. Atiku Bagudu; Power, Mr Adebayo Adelabu; Special Adviser to the President on NEC and Climate Change; Special Adviser to the President on Power; Managing Director, Rural Electrification Agency (REA), and Managing Director, Niger Delta Power Holding Company.
Earlier, Shettima had outlined issues before the Council that required urgent attention to include energy infrastructure, human capital development, creative industries, fiscal strategy, industrial innovation, and long-term development planning, describing them as foundational to the transformation Nigeria needs.
Shettima explained that, it was for this that experts and stakeholders from some of the critical sectors had been invited to share their insights and contributions.
He said: “The past few months of collapses in our national power grid compel us to reinforce the pace with which we are adopting and implementing the National Electrification Strategy. Energy access is a fundamental right, not a privilege. It is the oxygen of economic growth.
“Our blueprints must, therefore, strive to expand access, empower rural communities, and drive productivity, especially for MSMEs. I hope that our discussions today will inspire solutions to light up homes, power businesses, and fuel Nigeria’s industrial future.
“Whatever path we agree upon, it is clear that a private-sector-led distributed renewable energy generation approach is essential to increasing electricity access for households and small enterprises alike.