Attempts to resolve the persistent power sector crisis in the past failed to turn around the sector. The recent presidential intervention is yet another step towards solving the problem; however, it is not clear how far the intervention can go, judging from the rot in the sector; SUNNY IDACHABA writes.
From name change to privitisation
If there is any sector in Nigeria that has defied every government intervention for several years now, it is the power sector.
It has evolved through several appellations like Electricity Corporation of Nigeria (ECN) just before independence, then transformed to National Electric Power Authority (NEPA), a name that is synonymous with under-performance and has remained on the lips of children and even unborn children. The last name change was Power Holding Company of Nigeria (PHCN).
In 2013, the federal government unbundled the former PHCN into various units through the separation of generation and distribution companies through the privatisation process. Thus today, there is Abuja Electricity Distribution Company (AEDC), Ikeja Electricity Distribution Company (IEDC), Jos Electricity Distribution Company (JEDC), etc.
All of these are with exceptions to Generation and Transmission partially still under the control of the government. Despite all these, power supply in the country has remained epileptic and, in many cases, abysmally unavailable.
Painfully too, at the turn of every election cycle, politicians promise with high heavens to revive the sector if voted into office; however, not long after, it would remain business as usual. Investigations reveal that the bulk of the problems are either obsolete equipment, lack of maintenance, insufficient gas supply to thermal plants or debts owed to gas suppliers.
Since February 2026, most parts of the country have been experiencing the worst form of darkness, owing to insufficient power supply. Report indicates that the problem was associated with debt being owed to gas suppliers and the load shedding by Nigerian Independent System Operator (NISO) due to some differences it has with the government.
As a result of this, power generation dropped to less than 4000 megawatts between February and March 2026, far below the installed capacity of over 13,000 megawatts and estimated demand exceeding 20,000 megawatts even though the power supply currently oscillates around 4000 and 4500 megawatts. All of these are beside the intermittent national grid collapse that had become so embarrassing.
Presidential intervention
In a bold move to tame the crisis in the sector, President Bola Ahmed Tinubu recently approved the sum of ₦3.3 trn payment plans towards a gradual clearing of the longstanding debts owed operators. This is aimed at restoring electricity reliability across the country.
According to a statement by the special adviser to the president on information and strategy, Bayo Onanuga, the debt settlement falls under the Presidential Power Sector Financial Reforms Programme, and also follows a comprehensive review of legacy obligations accumulated between February 2015 and March 2025.
“The verified ₦3.3trn represents a full and final settlement designed to bring transparency and closure to financial liabilities that have plagued the sector for over a decade.
“Implementation is already underway, with 15 power generation companies signing settlement agreements valued at ₦2.3trn. The federal government has so far raised ₦501bn to fund the programme, out of which ₦223 billion has been disbursed, while additional payments are in progress.
“The intervention is expected to stabilise electricity generation by ensuring that power plants and gas suppliers receive payments owed, thereby enabling improved operational capacity across the value chain,” he said.
Explaining the significance of this intervention further, the Special Adviser to the President on Energy, Olu Arowolo-Verheijen, said the programme goes beyond financial reconciliation.
“This programme is not just about settling legacy debts; it is about restoring confidence across the power sector, ensuring gas suppliers are paid, power plants can keep running and the system begins to work more reliably.”
For her, this is about the first major bold attempt to deliver the sector from underperformance. She said the initiative aligns with other reforms like improved metering and service-based tariffs that tie electricity payments to supply quality.
He said, “The government is also prioritising power supply to businesses, industries and small enterprises because reliable electricity is critical to creating jobs, supporting livelihoods and growing the economy.”
Before the settlement of this debt, the immediate past Minister of Power, Adebayo Adelabu, had earlier given that indication after a meeting he had with the leadership of GenCos in Abuja. According to him, the government recognised the critical nature of the debt and would prioritise its settlement.
“We recognise the urgency of this matter. The government is committed to resolving this debt to stabilise the sector and prevent further crisis,” he said.
Reform and investment opportunities
In the meantime, in order to solve the persistent crisis in the power sector, experts are urging local government authorities to get fully involved in the supply chain in order to take the burdens off the federal government entirely, more so that it has been removed from the exclusive list.
An energy expert, Nick Agule, said from the constitutional point of view, nothing stops local councils from getting involved in power. He therefore described every move by the federal government to devolve the electricity market as a significant development rooted in recent constitutional reforms that would open up the sector to wider participation.
Agule said the Electricity Act that was signed by former President Muhammadu Buhari to decentralise its control market was a turning point in the sector. “Electricity was taken from the exclusive list on the Constitution and placed in the concurrent list. We are putting 5,000 megawatts for more than 200 million people. Where on earth have you seen such a magic being performed in that magnitude?” he asked.
He said the shift has fundamentally changed the structure of the electricity market by allowing, not only the federal government but also states, local government and private investors to participate across generation, transmission and distribution.
Earlier calls for shift
It could be recalled that way back in 2018, a professor of Energy Law, Yinka Omorogbe, proposed that the control of energy ought to be on the concurrent legislative list rather than on the exclusive list in order to ensure efficient power supply in the country.
This former Edo state attorney-general argued that the idea of vesting full control of energy in the federal government was not in the nation’s best interest.
“Should it (energy) be on the exclusive list or the concurrent list? Definitely concurrent list. In the first place, why is it on the exclusive list? Pure control! It’s not there because it’s in the best interest of anybody but the centre has always wanted to exercise as much control as possible. From the time we moved from regionalism and went to the centre, it was all about control.
“Yes, we would be a lot better because the truth is that at the end of the day, those that would really feel the brunt of this lack of energy are the people at the local government level. The local governments are the ones wearing the shoes, so I clearly believe that it should be on the concurrent list.”
Solar to the rescue
As the power crisis continues unabated, attention is shifting to renewable energy, which in the views of many, is cheap and readily available if well harnessed. Renewable energy, according to experts, includes solar, wind, biomass and other sources of energy that are derived directly or indirectly as an effect of the sun’s energy.
To that extent, solar energy has become a ready answer to many of the unsolved questions in the power sector. Emmanuel Agbo, an energy expert, while writing on the benefits of renewable energy, said, “They are sustainable, can be replenished and have no harmful side effects for the most part, except in the process of harnessing them, which is a result of man’s activities.
“Developing the renewable energy projects is a huge opportunity from a technological and environmental perspective. From a strategic and financial standpoint, this development will be beneficial to a country or region. This can increase employment of labor and production.”
In many homes today, attention is drifting towards solar energy with all the panels adorning houses of those who can afford. It has become so serious that even the seat of power in Abuja, Presidential Villa, has been removed from the national grid in favour of solar energy.
On his part, Abubakar Opeyemi, an energy writer, said, “While solar capacity is still relatively small compared to the national energy deficit, its rate of adoption suggests a shift in direction rather than scale.
“The idea of solar is, therefore, not about dominance in output, but about influence in trajectory. Increasingly, solar solutions are shaping how individuals and businesses think about energy independence, especially in response to grid limitations and fuel costs.”
