More than a decade after the privatisation of Nigeria’s power sector, the country is still grappling with unreliable electricity supply despite an estimated N7 trillion spent under four different administrations.

Since the handover of the Power Holding Company of Nigeria assets to private investors in 2013, successive governments have injected trillions of naira into the sector in a bid to stabilise generation, transmission and distribution. Yet, Nigerians continue to experience frequent blackouts, grid collapses and erratic supply.

Within the first month of 2026 alone, the national grid collapsed twice, plunging major cities across the country into darkness and raising fresh concerns about the effectiveness of ongoing reforms.

Although Nigeria’s electricity challenges predate democracy, expectations were high after the return to civilian rule in 1999 that liberalisation would attract investment and improve supply. That optimism, however, has largely faded.

Following the Electric Power Sector Reform Act of 2005, the former National Electric Power Authority was restructured into the Power Holding Company of Nigeria, comprising six generation companies, one transmission company and 11 distribution companies. These entities were eventually sold to private investors in 2013.

Since then, all administrations have identified electricity as critical to economic growth. Former President Olusegun Obasanjo’s government promised an end to outages, but power generation at times dropped to as low as 1,800 megawatts, with obsolete equipment crippling transmission and distribution.

Under President Goodluck Jonathan, the government estimated that Nigeria would need about $900 billion over 30 years to fix its energy sector. His administration also oversaw the privatisation process, which was later criticised for weak regulation and poor investor capacity.

The Muhammadu Buhari administration secured over $6 billion in loans to upgrade transmission infrastructure and improve generation. It also pursued the Siemens power project, designed to expand capacity to 25,000 megawatts by 2025. Years later, the project has achieved only a fraction of its target.

President Bola Ahmed Tinubu, during his campaign, pledged to prioritise stable electricity supply. His administration is currently supervising a $500 million World Bank-backed Nigeria Distribution Sector Recovery Programme aimed at improving DisCos’ performance and metering.

Despite these efforts, the sector remains burdened by debt. Generation companies are demanding over N4 trillion from the government, citing unpaid subsidies and legacy obligations from privatisation.

Experts say one of the core problems is incomplete privatisation. The federal and state governments still jointly own about 40 per cent of distribution companies and retain full ownership of the Transmission Company of Nigeria, leaving room for political interference and recurring subsidies.

Consumer protection advocate Kunle Olubiyo said government involvement has turned the sector into a “cash cow,” unlike telecommunications, which was fully privatised and thrives without subsidies. He argued that corruption and weak accountability mean even massive investment would not yield results.

Energy consultant Bode Fadipe also blamed policy inconsistency and weak political will, especially on electricity pricing and metering. He said some investors exploit government bailouts while failing to upgrade infrastructure.

The transmission segment is widely regarded as the weakest link in the value chain. Experts note that outdated infrastructure, gas supply constraints and lack of automation continue to expose the grid to collapse.

The Electricity Act 2023 has further shifted responsibility to states, granting them powers to regulate electricity markets within their territories. While some experts support involving states in subsidy payments through FAAC deductions, others argue it violates constitutional provisions and unfairly burdens states with limited grid access.

For ordinary Nigerians, the consequences are immediate. Small business owners report losses during outages, while households rely on generators, power banks and alternative energy sources to cope with unreliable supply.

Former Transmission Company of Nigeria Managing Director, Aliyu Tambuwal, said grid stability depends on adequate spinning reserves, disciplined load management and investment in thermal and gas infrastructure.

Energy law expert Yemi Oke added that Nigeria must adopt modern grid monitoring technologies, expand off-grid and mini-grid solutions, and reduce reliance on an ageing national grid.

Analysts warn that without decisive reforms, transparent governance and strong political commitment, Nigeria risks repeating the same cycle of spending trillions while remaining in darkness.

The post Nigeria Spends Over N7trn on Power Sector, Darkness Persists After Four Presidents appeared first on Housing TV Africa.

This clash follows a recent move by Washington to impose new tariffs. On March 26, the U.S. applied a 14% tariff on certain Nigerian exports. The change has sparked concern in Abuja and among Nigerian exporters.

American Officials Speak Out
In a statement shared on X (formerly Twitter), the U.S. Trade Representative (USTR) accused Nigeria of “unfair trade practices.” The USTR noted that bans on items such as poultry, pork, fruit juices, and spirits hurt American businesses. They said these policies reduce export opportunities and lead to financial losses for U.S. producers.

Nigeria’s Ban Dates Back to 2016
Nigeria introduced its import restrictions in 2016. The goal was to promote local production and reduce reliance on foreign goods. The ban includes a broad list of items: frozen meats, refined oils, spaghetti, cement, beer, and even recharge cards.

Recently, Nigeria announced it may add solar panels to the list. The move is intended to support local clean energy industries.

Nigerian Leaders React to Tariffs
Nigeria’s Minister of Finance, Wale Edun, said the government is reviewing its economic approach. He noted that crude oil exports remain unaffected by the U.S. tariffs. However, non-oil sectors now face a 14% tariff, which he called “significant.” He also compared it to Vietnam, which faces a higher 46% tariff.

Edun suggested that Nigeria could become an attractive location for global manufacturing. With a stable economy and favorable exchange rate, he believes foreign companies may look to Nigeria as a production hub.

Concerns Over Non-Oil Exports
Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, expressed concern over the long-term impact. She said that while oil makes up over 90% of exports to the U.S., other sectors  like fertilizers, lead, and nuts — will suffer from the tariffs.

She warned that small and medium enterprises (SMEs), especially those relying on AGOA (African Growth and Opportunity Act) benefits, are at risk. Higher tariffs could increase costs, disrupt supply chains, and reduce access to the U.S. market.

A Call to Diversify Nigeria’s Exports
Dr. Oduwole stressed the need for export diversification. She said Nigeria must improve product quality and meet international standards. This, she added, is the only way Nigerian goods can compete globally.

Balancing Local Growth and Global Relations
As trade dynamics shift worldwide, Nigeria faces a tough choice. It must support local industries without losing key partners like the United States. The government now has to walk a fine line between protectionism and diplomacy.

The post U.S. Slams Nigeria’s Import Ban, Raises Tariffs on Exports appeared first on Housing TV Africa.

This comes in the wake of the Nigerian Electricity Regulatory Commission (NERC) approving the hike due to factors such as naira depreciation, inflation, and increased operational costs.

Several distribution companies, including Ibadan Electricity Distribution Company (IBEDC), Eko Electricity Distribution Company, and Kaduna Electricity Distribution Company, announced a tariff increase from N206.80/kWh to N209.50/kWh, effective July 1, 2024.

Despite the seemingly marginal rise, organised labour and private sector operators expressed strong opposition, questioning the need for another increase following the previous hikes.

In response, IBEDC Acting General Manager Francis Agoha stated that the adjustment, approved by NERC, was essential to address economic challenges such as exchange rate fluctuations, inflation, and gas costs. He assured that only Band A customers would be affected, while tariffs for Bands B, C, D, and E would remain unchanged.

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Despite the assurances, various stakeholders, including the Nigerian Association of Small-Scale Industrialists and the Association of Small Business Owners of Nigeria, voiced concerns about the negative impact on industries and the broader economy. They warned that higher production costs could lead to reduced demand for locally made goods, increased unemployment, and a rise in crime rates.

Experts in the electricity sector, like Bode Fadipe, also criticized the timing of the tariff hike, urging the government to be sensitive to the current economic hardships faced by Nigerians. The NLC and TUC, along with other labour groups, have pledged to resist the increase, emphasizing that it adds an undue burden on already struggling citizens and businesses.

READ ALSO: Labour Day: Why Nigerian Workers Deserve Access to Affordable Housing

This tariff hike follows recent reports of rising monthly electricity subsidies, driven by the strengthening dollar and accelerating inflation. As the debate continues, the government and regulatory bodies face mounting pressure to find a balance between operational sustainability and economic relief for consumers.

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