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Ageing infrastructure responsible for national grid failure, stakeholders insist

By Guardian Nigeria
06 November 2024   |   7:39 am
Stakeholders in the electricity sector have criticised the state of Nigeria’s national electricity transmission network, attributing its frequent failures to outdated infrastructure, lack of modernisation and political interference.
Lamu

Stakeholders in the electricity sector have criticised the state of Nigeria’s national electricity transmission network, attributing its frequent failures to outdated infrastructure, lack of modernisation and political interference.

  
Speaking in an interview, the Managing Director of Mainstream Energy Solutions Limited (MESL), Audu Lamu, said despite years of grid operation, Nigeria remains stuck addressing basic failures instead of moving towards modernisation. 

“At this moment in time, we should be talking about installing SCADA systems and smart grid technologies, not struggling with failures caused by a single current transformer knocking out the entire grid,” he said.
  
The MESL chief noted the presence of equipment that has been in operation for 40 to 50 years, which has long surpassed efficiency benchmarks and cannot support the transition to modern grid operations. 
  
According to him, even if these old systems function, they are no longer efficient, and their lack of adaptability to modernisation standards is a serious concern.
  
Lamu also pointed out a glaring absence of proactive maintenance programmes, noting that many grid failures occur without warning due to inadequate protection systems. 

   
“No major asset—whether a transformer or breaker—should fail without giving notice. These assets require significant investment and should be protected accordingly,” he added.
  
The MESL Managing Director identified multiple challenges undermining Nigeria’s electricity value chain, spanning technical, commercial, and political issues. 

Lamu noted that while the generation and distribution sectors have been privatised to encourage efficiency and investment, the Transmission Company of Nigeria (TCN) remains under government control, creating a disconnect in operations.
  
“This lack of synergy—what we call a ‘handshake’—between the privatised sectors and TCN hampers overall efficiency. As a private operator, I must deliver returns to shareholders and cannot afford downtime. But TCN, constrained by political interference, does not operate under the same pressure, which weakens the entire chain.” Lamu said.

He argued that political interference limits TCN’s ability to make critical management decisions and effectively utilize limited funds. Lamu said “When there are no consequences for poor performance, inefficiencies will persist,” he warned.  On the way forward, Lamu recommended bringing in private operators to manage the grid while maintaining government ownership. 
  
“Other countries successfully manage critical national assets by engaging competent private operators. This attracts investment, and investors ensure assets are well-managed to protect their interests,” he noted.
   
He dismissed concerns that privatising the transmission sector would compromise national security, pointing to his company’s management of government-owned hydro plants. 

   
Lamu said: “We operate under strict regulatory oversight, which ensures accountability.”
He emphasised the importance of adopting SCADA systems—real-time communication networks that enable the National Control Centre in Oshogbo to monitor the grid more effectively.
 
“With SCADA, no operator can conceal outages or system faults, as the control centre would see what’s happening instantly,” he explained.
Lamu also advocated for a shift towards smart grid technologies, which reduce human interference in grid management, making the system more reliable. “We need to think about modern solutions like smart grids. These systems reduce downtime and improve efficiency by automating many processes,” he added.
Energy Expert, Dan Kunle noted that the power outages in Nigeria, particularly in the north would continue as long as the appropriate investments and managers are not put in place by the Federal Government. 
   
Kunle said: “It is not about the volume of generated power nor distribution metering, but about how effective you manage the transmissions and distribution.  The major industrial users must be prepared to pay the appropriate price,” he said.
   
According to him, the DisCos would continue to have revenue shortages because the household customers can never pay the economic prices for electricity, adding that Nigeria is still far away from electricity market equilibrium because investment is very low and thus productivity is nonexistent. 
 

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