In 2017, the Socio-Economic Rights and Accountability Project (SERAP) revealed that Nigeria lost approximately N11 trillion intended for investment in the power sector during the tenures of Presidents Olusegun Obasanjo, Umaru Yar’adua, and Goodluck Jonathan. Given this context, it is unsurprising that the Nigerian national grid experienced 13 collapses in 2024 alone.
The Nigerian power sector faces significant challenges. Despite an installed generation capacity of 13,164 MW across 23 power plants, Nigeria’s distribution infrastructure can only deliver less than 5,000 MW, falling far short of the estimated 40,000 MW required to adequately power Nigerian households and industries. A substantial portion of the electricity generated is lost during transmission and distribution.
Nigeria’s power sector primarily relies on thermal power plants, however, natural gas fuels approximately 86% of electricity generation. Hydropower is a secondary source, contributing to the remaining portion of electricity generation. Despite the privatisation of the power sector in 2006, significant gains have not been realised.
In comparison, countries like South Africa have a substantially larger installed capacity, exceeding 50,000 MW. Furthermore, Egypt, as hinted by Statista, has demonstrated remarkable progress in renewable energy, achieving an impressive installed capacity of around 60,000 MW through substantial investments in wind and solar power
With a per-capita electricity consumption of only 109 kWh as of 2006 according to Wikipedia, Nigeria has one of the lowest rates globally. Reports indicate that 55% of households in rural communities lack access to electricity, while 45% remain unconnected to the national grid. This stark contrast with Ghana, where 85% of households have access to electricity, highlights a significant challenge. Frequent power outages and brownouts severely disrupt daily life and economic activities. To meet their energy needs, Nigerian households and businesses spend an estimated $14 billion annually on generators and fuel, according to the Central Bank of Nigeria (CBN).
Decades of neglect have plagued the Nigerian power sector, leading to significant challenges. Underinvestment, poor maintenance, and systemic corruption have resulted in ageing infrastructure, frequent breakdowns, and operational inefficiencies. These factors have severely limited electricity availability and access across the country.
The Nigerian power sector faces significant challenges, including substantial technical and commercial losses beyond illegal connections and theft. Inadequate transmission and distribution infrastructure significantly contribute to these losses, resulting in substantial power losses and frequent outages. Furthermore, the sector’s heavy reliance on natural gas for power generation is frequently impeded by gas supply disruptions and inadequate gas infrastructure, significantly impacting electricity production.
Despite government intervention, including grants and extensive bailouts to power generation and distribution centres, and the implementation of various policies and executive orders, such as the Electricity Act of 2023, and despite interventions from the World Bank and other organisations, the Nigerian people continue to suffer from chronic power deprivation. The deployment of technology, particularly Big Data, holds significant potential to address some of this sector’s critical challenges.
How Big Data can help with these challenges in the Power Sector
Big data encompasses vast and intricate datasets that surpass the processing capabilities of traditional data management systems. It is characterised by three key features: Volume, Variety, and Velocity. Data analytics involves examining data to uncover trends, patterns, and valuable insights that can inform better decision-making. Essentially, Big Data serves as the raw material that fuels the data analytics process, enabling the generation of meaningful information.
The deployment of Big Data and Data Analytics can be pivotal in addressing the challenges faced by the Nigerian power sector, paving the way for a stable and efficient electricity generation and distribution system – a long-awaited goal for all Nigerians. By leveraging these technologies, utilities can enhance efficiency, optimise operations, improve customer service, and empower stakeholders with the data-driven insights necessary for informed decision-making within the sector.
By leveraging Big Data, Data Analytics, statistical software, and Machine Learning, the energy sector can enhance energy management, reduce wasteful production, lower the cost of power generation, minimise energy consumption, and minimise transmission losses.
To put an end to the frequent downtime and collapse of the grid in Nigeria, the utilities data they collect and analyse can identify patterns, and detect abnormalities and potential faults through the massive pull of data from various sources like meters, sensors, IoT devices, and other systems of data collection. Big Data empowers smart grid management through real-time energy flow monitoring, enhanced grid reliability, and expedited responses to outages and disruptions.
Big Data can significantly enhance grid operations, helping utilities better serve end-users. By analysing historical consumption patterns, weather data, and demographic trends, utilities can accurately forecast and predict electricity demand. Furthermore, by optimising customer data, utilities can effectively identify areas with high incidences of energy theft, vandalism, and waste.
For instance, a US-based power company implemented predictive maintenance using data analytics. By analysing sensor data, they developed models to forecast equipment failures. This proactive approach reduced unplanned outages by 20% and maintenance costs by 15%, leading to significant cost savings and improved customer satisfaction.
The integration of variable renewable energy sources, such as solar and wind power, introduces significant variability to the grid. Big Data plays a crucial role in managing this variability. By facilitating real-time monitoring of weather conditions and energy production, Big Data enables utilities to maintain grid stability and optimise operations.
Big data revolutionises the energy sector by streamlining regulatory compliance and empowering informed decision-making. When data collection and analysis is made simple, big data enables utilities to efficiently document and report their operations with greater transparency, enhancing regulatory compliance. Moreover, big data analytics empowers energy traders to gain a competitive edge by analysing market trends and consumer demand patterns, enabling them to optimise pricing strategies and make more informed trading decisions.
In conclusion, Big data can empower the Nigerian power distribution sector, offering substantial benefits and solutions to critical challenges. By leveraging data analytics, utilities can enhance operational efficiency, improve service delivery, and contribute to a more sustainable energy future.
