Get Guardian on GoogleThe alarm raised by the Chemical and Non-Metallic Products Employers Federation (CANMPEF) about high cost of electricity amidst failure of the national grid is only a rehash of what most Nigerians are going through. The Federal Government should be very concerned. The Federation reportedly disclosed that Nigerian manufacturers spent an estimated N1.35 trillion on alternative power in 2025, while 18,935 manufacturing jobs were lost in the first half of the year. These figures are frightening. They demonstrate the devastating consequences of Nigeria’s electricity crisis on industrial productivity, employment and national economic growth.
It is shameful that at 66, Nigeria, the most populous country in Africa and one of the continent’s most richly endowed nations, cannot guarantee its citizens a constant and reliable electricity supply. After decades of policy pronouncements, reform programmes, privatisation and enormous public expenditure, Nigerians are still condemned to darkness. There is so much rhetoric about transforming the power sector but very little action. Nigerians are tired of lame, ready-made excuses. They demand delivery of power.
The persistent collapse of the national grid, plunging millions of homes and businesses into darkness with embarrassing regularity, is a national disgrace. Industries spend billions of naira annually on diesel-powered generators. Hospitals struggle to perform life-saving operations. Universities conduct research under unstable electricity conditions.
Regrettably too, small businesses are crippled by soaring energy costs, while potential investors increasingly regard unreliable electricity as one of the greatest obstacles to doing business in Nigeria. No country aspiring to become a modern industrial economy can continue to function under such debilitating conditions. These days, most Nigerians cannot sleep comfortably at night or work effectively in their offices because of unbearable heat and absence of electricity to power their fans and air conditioners.
The Federation identified electricity supply as one of the most significant constraints confronting manufacturers, particularly producers of chemicals, plastics, rubber, glass, ceramics and other non-metallic mineral products whose production processes are heavily dependent on energy. It lamented that average electricity generation remained below 5,000 megawatts against an estimated national demand of about 18,345 megawatts. Gas supply constraints, transmission bottlenecks and recurring grid collapses have continued to undermine the capacity of the sector to meet the country’s electricity needs.
For these industries, irregular electricity is not merely an inconvenience; it threatens production processes, damages equipment, increases operating costs and undermines competitiveness. Ironically, all this is happening in a country blessed with some of Africa’s largest natural gas reserves and enormous renewable energy resources. Nigeria has the natural endowments to generate substantially more electricity than it currently produces. What is missing is not the availability of resources but the political will, institutional discipline, competent management and sustained investment required to harness them.
The greatest structural weakness of the present electricity arrangement is its continued dependence on an overburdened national grid attempting to serve more than 200 million people across 36 states and the Federal Capital Territory. The repeated collapse of the grid exposes the fragility of this highly centralised system. Nigeria must therefore accelerate the decentralisation of electricity generation and distribution, fully exploiting the opportunities created by the Electricity Act 2023. State governments, private investors and industrial clusters should be encouraged to develop independent and embedded electricity generation systems capable of meeting local demand.
Meanwhile, the growing adoption of solar energy by households and businesses is exposing another fundamental weakness in the electricity distribution model. Nigerians are increasingly investing in solar panels, inverters and battery storage because they can no longer depend on the national grid. This development is understandably unsettling the revenue models of electricity distribution companies (DisCos), which depend largely on consumers purchasing electricity from the grid. But the DisCos should understand that consumers cannot be expected to remain permanently dependent on an unreliable electricity supply.
Thirteen years after the privatisation of the electricity sector, the promise of improved efficiency, increased investment and reliable power supply remains largely unfulfilled. Rather than guarantee stable electricity, the privatised system has left consumers paying for darkness while spending additional fortunes on generators, diesel and solar installations. This is an indictment of a reform programme that has failed to deliver its central promise.
The Federal Government and the Nigerian Electricity Regulatory Commission (NERC) must recognise that solar energy is not an enemy of the electricity market but an important part of its future. The increasing adoption of renewable energy should encourage DisCos to rethink their business models and embrace distributed generation, mini-grids and partnerships with independent power producers. Consumers who invest in alternative energy must equally be protected against arbitrary charges, unfair billing practices and regulatory harassment. The survival of DisCos cannot take precedence over the welfare of electricity consumers.
Beyond these structural reforms, the Federal Government must urgently prioritise adequate gas supply to power generation companies, settle outstanding debts in the electricity value chain to restore confidence and investment, and establish a predictable and transparent electricity tariff framework. It must also encourage captive and embedded power generation, particularly for industrial clusters, while providing incentives for renewable energy investments. The concerns raised by manufacturers over prohibitively high borrowing costs must also be addressed. Manufacturers cannot expand production, modernise equipment or invest in alternative energy when the cost of credit is itself prohibitive.
The Federal Government must stop treating electricity as another subject for endless policy conferences, committees and official pronouncements. What the country needs is a measurable and time-bound electricity recovery programme with clear responsibilities, transparent funding and consequences for institutional failure. The government must also publish regular performance reports showing improvements in generation, transmission and distribution. Ultimately, electricity is not a luxury. It is the lifeblood of modern economic development. Without reliable power, Nigeria cannot industrialise, create sufficient employment, attract sustainable foreign investment or compete effectively in the global economy. The purpose of electricity privatisation was to improve service delivery, not merely to transfer public assets into private hands.
The Tinubu government must rise to the occasion and give Nigerians what they have been denied for far too long: constant, affordable and reliable electricity. It is not rocket science. It is a basic obligation of governance.
