Strategy for Reliable Electricity in Nigeria (Mini-Grids)

As with all economic elixirs, privatization has been oversimplified, oversold, and ultimately disappointing—delivering less than promised. Electricity supply to the average Nigerian has not improved between 2015 and 2019. Within the Last decade the Nigerian government has introduced dedicated policies and regulations, latest among them being the Nigerian Electricity Regulatory Commission Mini-Grid Regulation, 2016. Following the enactment of the Electric Power Sector Reform Act (EPSRA) in 2005, Nigeria’s power sector was unbundled and the vertically integrated entity NEPA, was divided into 6 generation companies, 11 distribution companies and the government-owned Transmission Company of Nigeria. It is apparent that the government is unable to fund sufficient energy projects to light up the country; it therefore needs the private sector. I am of the opinion that the current policies do not favour the economic climate for energy operators and investors to thrive.

Problem: Insufficient and unreliable electricity supply, inadequate mini-grid strategy.

Beneficiary: Nigerians, Nigerian Electricity Regulatory Commission, Federal and State Governments.

Proposed by: Tomi Orunmuyi

Idea Status: Pitch

In order to build my case, I will be providing some answers to basic questions that explain the reason for the poor state of electricity supply in Nigeria.
Why is Nigeria’s power supply unreliable?
i. Poor state of National Grid (Transmission) – high rate of failure and low capacity.
ii. Insufficient power generation capacity- hence requiring load sharing at the distribution level .

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