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The crushing cost of fuel: Nigeria’s economy and the burden on the citizens

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The high cost of fuel has become one of the most painful economic realities confronting Nigerians. What appears at first to be a matter of petrol pricing has consequences that reach virtually every household, business, farm, school, hospital and market across the country. In an economy where transportation and electricity generation depend heavily on petroleum products, increases in fuel prices inevitably translate into increases in the cost of living.

For millions of Nigerians, the question is no longer simply how much it costs to fill a vehicle’s tank. The more fundamental question is how much further the average income can stretch when transportation, food, housing, education, healthcare and other essential services are becoming increasingly expensive.

The fuel-price crisis therefore deserves to be treated not merely as an energy-sector problem but as a national economic and social challenge.

Fuel and the Cost of Everything

Nigeria’s dependence on petrol-powered transportation makes fuel prices particularly significant. When the price of petrol rises, transport operators face higher operating costs. Those costs are subsequently reflected in fares for buses, taxis, motorcycles and tricycles.

The effect does not end at transportation.

Farmers and agricultural traders depend on fuel to move people, machinery and produce. Manufacturers require energy to operate factories and transport raw materials and finished products. Traders pay more to move goods from farms and warehouses to markets. Artisans and small businesses that rely on petrol or diesel generators face higher operating expenses.

Consequently, the increase in fuel prices can produce a chain reaction throughout the economy.

A farmer who spends more to transport fertiliser and harvested crops may have to increase the price of food. A trader who pays more to move goods may increase retail prices. A manufacturer confronting higher energy and logistics costs may adjust the price of its products. A transport operator facing higher fuel costs may raise fares.

Eventually, the ordinary consumer bears much of the accumulated burden.

The Poor Pay the Heaviest Price

Perhaps the most troubling consequence of high fuel prices is its disproportionate effect on low-income households.

For wealthy households, an increase in petrol prices may mean reducing discretionary spending or changing the type of vehicle used. For a low-income family, however, the same increase can mean fewer meals, a child’s withdrawal from school, delayed medical treatment or an inability to travel to work.

This is particularly serious in a country where millions of households already operate on limited incomes.

A worker who spends a substantial part of his or her salary on transportation has less money available for food, rent, healthcare and education. Small increases in daily transportation costs can therefore become significant monthly financial burdens.

The danger is that households begin to cope through measures that undermine their long-term welfare.

Some reduce the quantity or quality of food they consume. Others postpone medical treatment. Parents may struggle to meet school expenses. Young people may abandon job opportunities because commuting has become too expensive.

When this happens on a large scale, high fuel prices cease to be merely an economic statistic. They become a question of human welfare.

The Burden on Businesses

Nigeria’s small and medium-sized enterprises are particularly vulnerable.

Many businesses already operate under difficult conditions involving inadequate electricity supply, high taxes and levies, expensive credit, poor infrastructure and logistical challenges. Fuel price increases add another layer of pressure.

A small shopkeeper using a petrol generator may have to spend considerably more simply to keep the business open. A barber, restaurant owner, tailor, welder, printer or small manufacturer may have no immediate alternative to privately generated electricity.

The result is higher operating costs.

Businesses have only a limited number of choices: increase prices, reduce production, cut staff, shorten operating hours or close altogether.

Each option has consequences for the wider economy.

When businesses increase prices, consumers suffer. When businesses reduce staff, unemployment increases. When businesses close, communities lose income-generating opportunities and government loses potential tax revenue.

The country therefore needs to recognize that energy costs are also business costs, employment costs and development costs.

Transportation: The Immediate Pain

For ordinary Nigerians, transportation is often the first visible consequence of rising fuel prices.

Workers who commute daily are immediately affected. Students travelling to school face increased expenses. Traders travelling to markets spend more. Inter-state travellers confront higher fares.

In urban centres, where many people depend on commercial transportation, the impact can be particularly severe.

The situation also creates a difficult paradox. People need transportation to earn income, but the cost of transportation consumes an increasing portion of that income.

For some workers, accepting a job far from home may no longer make economic sense. For businesses, transporting employees and goods becomes more expensive. For families, visiting relatives or accessing services outside their immediate communities becomes increasingly difficult.

A country cannot achieve strong economic growth when mobility itself becomes unaffordable for large sections of the population.

Food Security Under Pressure

The relationship between fuel prices and food prices deserves special attention.

Nigeria is an agricultural country, but food does not move from farms to consumers without transportation, storage, processing and distribution. All these activities require energy.

When fuel becomes more expensive, the cost of moving food from rural communities to urban markets increases.

This can create a painful situation in which farmers do not necessarily receive substantially better incomes even as consumers pay higher prices. A large portion of the additional cost may be absorbed by transportation, storage and distribution.

The danger is that high energy costs can therefore contribute to food insecurity.

For a family already struggling to afford basic food items, another increase in the price of staple commodities can have devastating consequences.

Inflation and the Erosion of Income

High fuel prices also contribute to inflationary pressure.

Even when workers receive salary increases, their purchasing power can continue to decline if the prices of essential goods and services rise faster than their incomes.

This creates a serious problem for both public and private-sector workers.

A salary that once covered transportation, food and other household expenses may no longer be sufficient. Pensioners and people living on fixed incomes can be particularly vulnerable because their earnings may not adjust quickly enough to changing prices.

The central concern should therefore not be merely nominal income but real purchasing power.

What matters to a Nigerian household is not how many naira it receives at the end of the month, but what that income can actually buy.

The Electricity Problem

Nigeria’s fuel crisis is inseparable from its electricity crisis.

For decades, inadequate and unreliable electricity supply has forced households and businesses to depend heavily on generators. Petrol and diesel consequently become part of the cost of running businesses, schools, hospitals and even homes.

This creates a vicious cycle.

Poor electricity supply increases dependence on generators. Generator dependence increases demand for petroleum products. Higher fuel prices then increase the cost of operating generators. Businesses transfer those costs to consumers, contributing further to inflation.

Breaking this cycle requires a serious national commitment to improving electricity generation, transmission and distribution.

Nigeria cannot continue to expect households and businesses to privately finance a large part of the country’s energy needs.

Government Revenue Is Not the Same as Public Welfare

Government has legitimate responsibilities in managing the petroleum sector and the national economy. Pricing reforms may also be necessary to address fiscal pressures, market distortions and inefficiencies.

But economic reform cannot be judged solely by government revenue or the removal of subsidies.

The ultimate test must also include its effect on citizens.

If a policy improves government finances but leaves millions of families unable to afford transportation and basic necessities, policymakers must confront the social consequences and consider appropriate mitigating measures.

Reforms require social protection.

Where difficult economic decisions impose immediate costs on citizens, government should ensure that vulnerable households receive effective and transparent assistance.

Such assistance must be properly targeted and measurable. It should not become another avenue for waste, corruption or political patronage.

The Need for Transparency

One of the greatest problems surrounding fuel pricing in Nigeria has historically been a lack of public confidence.

Citizens deserve clear information about how fuel prices are determined, the factors responsible for changes, the role of crude oil prices, exchange rates, refining costs, transportation, taxes and other charges.

Transparency is essential because Nigerians are more likely to understand difficult economic decisions when the evidence behind them is clearly presented.

Government agencies and petroleum-sector institutions must therefore communicate openly with the public.

A citizen should not have to rely on rumours and social media speculation to understand why the price of a product as important as petrol has changed.

Domestic Refining Must Become More Than a Promise

One of the most important long-term solutions is the development of a competitive domestic refining industry.

Nigeria is one of Africa’s major oil-producing countries, yet for many years the country relied heavily on imported refined petroleum products. This created vulnerability to international prices, foreign exchange pressures, shipping costs and other external factors.

Expanding reliable domestic refining capacity could reduce some of these vulnerabilities.

However, domestic refining should not simply mean replacing imports with expensive locally produced fuel. The broader objective should be a competitive and efficient petroleum industry that benefits consumers while supporting investment.

Competition, transparency and effective regulation will be crucial.

The Way Forward

Nigeria needs a comprehensive strategy rather than a single solution.

First, government should strengthen public transportation systems, particularly affordable mass transit in major cities. Efficient public transportation can reduce the amount households spend on daily commuting.

Second, investments in electricity must become more effective and sustainable. Reliable electricity would reduce dependence on generators and consequently reduce exposure to petrol and diesel prices.

Third, the country needs policies that improve agricultural productivity and reduce the cost of transporting food from farms to markets.

Fourth, targeted social protection should be strengthened for households most severely affected by rising living costs.

Fifth, government should continue to encourage domestic refining while ensuring that the petroleum market remains transparent and competitive.

Sixth, economic policymakers should pay greater attention to the survival of small businesses. Affordable credit, improved infrastructure, reliable electricity and a predictable regulatory environment can help businesses absorb energy shocks without passing the entire burden to consumers.

Finally, Nigerians deserve accountability.

Every naira generated from the petroleum sector and every naira spent on interventions should be subject to appropriate public scrutiny.

A National Challenge That Requires National Responsibility

The high cost of fuel is more than an inconvenience at the filling station. It affects the price of food, transportation, electricity, production and virtually every aspect of economic life.

But the country must avoid viewing the problem exclusively through the lens of fuel prices.

The deeper challenge is Nigeria’s dependence on an energy system that places enormous financial pressure on citizens and businesses.

The sustainable answer lies in building an economy in which reliable electricity, efficient public transportation, productive agriculture, competitive industries and strong social protection reduce the vulnerability of ordinary Nigerians to energy-price shocks.

Economic reforms may sometimes be difficult, but the burden of adjustment should not fall disproportionately on those least able to bear it.

Nigeria’s citizens need an economy in which hard work translates into a decent standard of living, businesses can plan for the future, farmers can profit from production, and families can afford basic necessities.

The price of fuel may be displayed at filling stations, but its true cost is measured in the daily sacrifices made by millions of Nigerians.

That is why the country’s response must go beyond managing petrol prices. It must address the underlying energy, transportation, infrastructure and productivity problems that make every increase at the pump reverberate throughout the national economy.

Nigeria cannot build sustainable prosperity if the cost of moving people, producing goods and powering businesses remains beyond the reach of ordinary citizens.

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EDITORIAL: COP31: Nigeria must move beyond climate promises to concrete action

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As world leaders, climate experts, environmental activists and policymakers gather in Antalya, Türkiye, for the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31), the attention of the international community is once again focused on the urgent need to confront the growing threat of climate change. Holding from November 9 to 20, 2026, the conference provides another opportunity for countries to review their climate commitments, negotiate practical solutions and strengthen international cooperation against environmental degradation. For Nigeria, however, COP31 should represent more than another international gathering. It should be an opportunity to confront the country’s worsening environmental challenges and demonstrate a genuine commitment to climate action.

The reality is that Nigeria is increasingly exposed to the devastating consequences of climate change. From recurring floods that displace communities and destroy homes to prolonged droughts, desertification, rising temperatures and coastal erosion, the country’s environmental challenges have become more complicated. These developments threaten food security, public health, economic stability and the livelihoods of millions of Nigerians.
The devastating floods experienced in different parts of the country in recent years have demonstrated the extent of Nigeria’s vulnerability. Communities have lost homes, farmlands, businesses and critical infrastructure. In the northern region, desertification and declining rainfall continue to threaten agricultural activities and livelihoods, while coastal communities in the South face rising sea levels, erosion and the consequences of environmental degradation.

The Niger Delta presents another disturbing dimension of Nigeria’s climate challenges. Years of oil exploration, gas flaring, oil spills and environmental pollution have left many communities struggling with damaged ecosystems and declining agricultural and fishing activities. The environmental consequences of these activities have compounded the difficulties associated with climate change, making the region particularly vulnerable.

Unfortunately, Nigeria’s response to these challenges has not matched the urgency of the situation. Although the country has established climate policies and institutions, including the National Council on Climate Change, the major challenge remains translating policy commitments into measurable results.
Nigeria’s Climate Change Act of 2021 provided an important legal framework for addressing climate issues. Similarly, the country’s commitments under the Paris Agreement demonstrate its recognition of the need to reduce greenhouse gas emissions and pursue a sustainable development pathway. However, the existence of policies and legislation is not enough. Their implementation, monitoring and enforcement must become government priorities.

One major challenge confronting Nigeria is inadequate climate financing. Addressing climate change requires substantial investment in renewable energy, flood-control infrastructure, climate-smart agriculture, environmental restoration and disaster management.
Nigeria is reportedly seeking about $336.5 billion to finance climate mitigation and adaptation programmes between 2026 and 2035. This enormous financial requirement underscores the magnitude of the challenge before the country. It also reinforces the need for Nigeria to use COP31 to attract international support, private-sector investment and technology partnerships.

While international climate financing remains important, Nigeria must equally demonstrate accountability and transparency in the utilisation of available resources. Climate funds should not become another avenue for corruption, mismanagement and abandoned projects. Every investment must produce tangible benefits for vulnerable communities.

Another critical issue Nigeria must address is its continued dependence on fossil fuels. Although oil and gas remain important contributors to the country’s revenue and foreign exchange earnings, the country cannot afford to ignore the global transition towards cleaner energy.
Gas flaring, particularly in the Niger Delta, remains a major environmental concern. Government must strengthen regulations against illegal gas flaring, enforce environmental standards and accelerate investments in renewable energy sources such as solar, wind and hydropower.

Nigeria possesses enormous renewable energy potential. Harnessing these resources would not only help reduce emissions but also address the country’s persistent electricity challenges. Expanding access to affordable solar energy, particularly in rural communities, would support small businesses, improve healthcare delivery and strengthen educational institutions.
Agriculture is another sector requiring urgent attention. Millions of Nigerians depend on farming for their livelihoods, yet changing rainfall patterns, flooding, drought and soil degradation continue to undermine agricultural productivity. Government must therefore invest in climate-resilient seeds, irrigation systems, modern agricultural technology, weather forecasting and extension services.

Equally important is the need to strengthen Nigeria’s disaster preparedness. The recurring experience of flooding in several states exposes the weaknesses in urban planning, drainage infrastructure and early-warning systems. Federal, state and local governments must work together to enforce building regulations, protect waterways, improve drainage systems and discourage indiscriminate construction on floodplains.

Furthermore, the destruction of forests and indiscriminate tree felling must be addressed through sustained afforestation programmes and stronger environmental protection measures.
COP31 must also provide Nigeria with an opportunity to strengthen its international climate diplomacy. As one of Africa’s largest economies and most populous countries, Nigeria has an important responsibility to champion the continent’s demand for climate justice.
Africa contributes relatively little to global greenhouse gas emissions compared with major industrialised economies, yet it suffers disproportionately from the consequences of climate change. It is therefore imperative that developed countries honour their climate-financing commitments and provide accessible funding, technology transfer and capacity-building support to vulnerable developing nations.

Nigeria must work closely with other African countries to demand fair and predictable climate financing, particularly for adaptation and loss-and-damage programmes. However, such demands must be accompanied by credible domestic climate policies and transparent implementation frameworks.

The human dimension of climate change must equally receive greater attention. Poor households, rural farmers, fishing communities, women and children are often the worst affected by environmental disasters, despite contributing least to the problem. Government’s climate policies must therefore prioritise vulnerable populations and ensure that the transition towards a green economy does not create additional economic hardship.

There is also an urgent need to involve young Nigerians in climate action. Through environmental education, research, innovation and green entrepreneurship, young people can become important contributors to the country’s sustainable development ambitions.

Ultimately, Nigeria must recognise that climate change is not merely an environmental issue. It is an economic, social, developmental and national security challenge. The destruction of agricultural livelihoods, displacement of communities and competition over increasingly scarce natural resources can deepen poverty and social instability.

As COP31 progresses in Antalya, the Federal Government must ensure that Nigeria’s participation goes beyond diplomatic speeches and the presentation of ambitious proposals. The country must return with concrete agreements, investment opportunities and practical strategies that can be implemented at home.

The Federal Government should establish clear implementation targets, strengthen environmental regulatory institutions, improve coordination among the three tiers of government and ensure that climate policies are backed by adequate funding. The National Council on Climate Change must also be empowered to monitor progress and hold relevant institutions accountable.

Nigeria cannot afford to treat climate change as a distant threat or an issue to be discussed only during international conferences. Its consequences are already visible in the country’s farms, rivers, forests, cities and coastal communities.

COP31 must therefore serve as a turning point in Nigeria’s environmental governance. The country must move from promises to performance, from policy declarations to practical implementation and from dependence on fossil fuels towards a more diversified and sustainable energy future.

The time for climate rhetoric is over. What Nigeria needs now is determined leadership, responsible environmental management, international cooperation and sustained investment in a climate-resilient economy. The future of millions of Nigerians, particularly generations yet unborn, depends on the decisions and actions taken today.

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EDITORIAL: Harnessing Nigeria’s IT strength in building a formidable economy

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Nigeria must move beyond celebrating its growing technological potential to strategically deploying information technology as a major driver of economic transformation, industrial
growth and national prosperity.
Nigeria stands at a critical point in its economic development, where the effective deployment of Information Technology (IT) could determine its capacity to compete favourably in the global economy. With a large youthful population, a growing pool of technology talents, an expanding telecommunications industry and an increasingly vibrant digital entrepreneurship ecosystem, the country possesses considerable advantages that could be harnessed to build a formidable economy.
Unfortunately, these advantages remain largely underexploited. While several countries are using technological innovation to accelerate industrialisation, improve productivity, create employment and strengthen their economic competitiveness, Nigeria is yet to fully translate its IT potential into sustainable economic prosperity.
The country’s technology ecosystem has recorded remarkable growth in recent years. The emergence of indigenous fintech companies, digital payment platforms, software development enterprises, e-commerce businesses and technology-driven startups demonstrates that Nigerians possess the creativity and technical capacity to compete on the international stage.
The success of companies such as Flutterwave, Paystack and Interswitch illustrates how innovation can transform financial transactions, facilitate commerce and expand economic opportunities. These developments have also demonstrated that technology is no longer merely a supporting instrument of economic activities but a critical component of modern economic growth.
However, the challenge before Nigeria is how to move beyond isolated technological successes and build a comprehensive digital economy capable of transforming agriculture, manufacturing, education, healthcare, transportation, security and public administration.

For a country aspiring to become a major African economic powerhouse, this transformation cannot be postponed.

One of the most important areas requiring government attention is digital infrastructure. Reliable electricity, affordable broadband internet, extensive fibre-optic networks and efficient telecommunications services are fundamental to technological development. It is difficult to build a competitive digital economy in an environment where businesses struggle with unstable electricity, expensive internet services and inadequate connectivity.

The Federal Government must therefore prioritise investments in digital infrastructure, particularly in rural communities and underserved areas. Expanding broadband penetration will not only improve communication but also create opportunities for remote employment, online education, digital commerce and technology-driven businesses.

Equally important is the development of human capital. Nigeria’s youthful population represents an enormous economic asset, but this advantage could become a liability if millions of young people remain inadequately equipped with the skills required by the modern economy.

Government, educational institutions and the private sector must collaborate to make digital literacy, coding, artificial intelligence, cybersecurity, robotics, data analytics and software development integral components of the country’s educational and vocational training systems.

There is also an urgent need to reform the educational curriculum to reflect the realities of a technology-driven global economy. Producing graduates whose qualifications are disconnected from the demands of the labour market will only deepen unemployment and underemployment.

Furthermore, Nigeria must create an enabling environment for technology entrepreneurs and startups. Access to affordable financing, favourable taxation, regulatory stability and adequate protection of intellectual property rights are essential to encouraging innovation.

Many promising Nigerian technology entrepreneurs struggle to expand their businesses because of limited access to capital, inconsistent government policies and the high cost of doing business. The government must address these obstacles through deliberate policies that encourage indigenous innovation and attract both local and foreign investments.

The Nigerian financial technology sector has already demonstrated the transformative capacity of digital innovation. However, similar achievements must be replicated in agriculture, manufacturing and other productive sectors.

For instance, technology can help farmers access weather information, improve agricultural productivity, identify markets and obtain financial services. In manufacturing, automation and digital production systems can reduce operational costs, improve product quality and enhance competitiveness. In healthcare, telemedicine and digital health records can improve access to medical services, particularly in underserved communities.

Nigeria must also recognise the enormous economic opportunities presented by artificial intelligence. Although the technology is still evolving, its applications in business administration, education, agriculture, financial services, healthcare and industrial production are increasingly significant.

The country should develop a national artificial intelligence framework that encourages responsible innovation, protects citizens’ data and prepares Nigerian businesses and workers for the changing demands of the global economy.

Another critical consideration is the need to strengthen cybersecurity and data protection. As more economic activities migrate to digital platforms, the risks associated with cybercrime, financial fraud, identity theft and data breaches will increase. Without adequate safeguards, public confidence in the digital economy could be undermined.

The government must strengthen regulatory institutions, improve cybersecurity infrastructure and promote public awareness of digital safety.
Beyond these measures, Nigeria must deliberately position itself as a destination for global technology investments. The country’s large consumer market, entrepreneurial population and strategic location within Africa provide opportunities to attract technology companies seeking to expand their operations across the continent.

However, attracting these investments requires policy consistency, institutional transparency, economic stability and an efficient business environment.
The government must equally address the persistent problem of brain drain in the technology sector. It is regrettable that many highly skilled Nigerian technology professionals seek opportunities abroad because of better remuneration, infrastructure and working conditions.

While Nigerians should be free to pursue opportunities anywhere in the world, government must create conditions that make the country attractive for technology professionals to establish businesses, develop innovations and transfer knowledge.

There is also a compelling need to deploy IT in improving governance. Digitalisation of public services can reduce bureaucratic bottlenecks, improve revenue collection, promote transparency and minimise opportunities for corruption.

Government institutions should embrace technology in procurement, tax administration, public records management and service delivery.
Nevertheless, the development of Nigeria’s digital economy must not be concentrated in major cities alone. Rural communities, small businesses, women and economically disadvantaged groups must be included in the country’s digital transformation agenda. Otherwise, the technology revolution could widen existing economic inequalities.

Ultimately, Nigeria’s ambition to build a formidable economy cannot be realised through dependence on crude oil and other traditional sources of revenue alone. The future belongs increasingly to economies that invest in knowledge, innovation, technology and human capital.

The Federal Government must therefore move beyond policy pronouncements and translate its digital economy ambitions into measurable programmes with clear implementation timelines. State governments, the private sector, universities and technology entrepreneurs must also become active partners in this national project.
Nigeria has the talent, population, entrepreneurial spirit and market potential to become one of Africa’s leading technology-driven economies. What is required is visionary leadership, strategic investment, policy consistency and the political will to turn these advantages into tangible economic benefits.

The time has come for Nigeria to stop treating Information Technology as a peripheral sector and begin recognising it as a central pillar of national economic development. Harnessing the country’s IT strength is not merely about embracing modern technology; it is about creating jobs, stimulating industrial growth, diversifying the economy, improving productivity and securing prosperity for future generations.

A Nigeria that successfully harnesses its technological potential will be better positioned to compete globally, create wealth domestically and build the formidable economy its citizens deserve.

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EDITORIAL: Sanitising Nigeria’s Power Sector: The urgent need to end corruption, inefficiency and exploitation

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Nigeria’s electricity sector has remained one of the most troubling examples of institutional failure, corruption and policy inconsistency in the country. Despite successive governments spending enormous sums of public money on power sector reforms, the country continues to grapple with epileptic electricity supply, frequent grid collapses, inflated electricity bills, poor service delivery and the persistent exploitation of consumers. This unfortunate situation raises fundamental questions about the management, accountability and integrity of the sector.

For a country with a population exceeding 200 million people and enormous economic potential, Nigeria’s inability to provide stable and affordable electricity is not only embarrassing but also economically damaging. Industries are shutting down or relocating, small businesses are struggling to survive, hospitals are forced to depend on alternative power sources, and households are spending an increasing proportion of their incomes on petrol and diesel to generate electricity. The power sector, which should be a catalyst for economic development, has instead become a major obstacle to national productivity.

There is, therefore, an urgent need to sanitise the sector and address the deep-rooted problems undermining its performance.

One of the greatest challenges confronting Nigeria’s electricity industry is the apparent lack of transparency and accountability among some of its operators. Since the privatisation of the power sector in 2013, expectations were high that private-sector participation would improve efficiency, attract investment and guarantee reliable electricity supply. Unfortunately, more than a decade after the exercise, the expected transformation remains largely elusive.

The privatisation process itself has continued to attract criticism over the capacity, competence and financial preparedness of some investors who acquired electricity distribution and generation companies. While it would be unfair to blame every failure in the sector on the private operators, the government must critically examine whether the objectives of privatisation have been achieved.

It is unacceptable that electricity distribution companies (DisCos) continue to demand higher tariffs from consumers while failing to provide electricity commensurate with the payments demanded. Consumers are regularly confronted with estimated billing, arbitrary charges, poor metering arrangements and inadequate responses to complaints. This practice must not be allowed to continue.
The Nigerian Electricity Regulatory Commission (NERC) must demonstrate greater determination in enforcing regulations and protecting consumers. Regulatory institutions should not exist merely to issue licences, announce tariff adjustments and make policy statements. Their primary responsibility must include ensuring that electricity operators deliver quality services, maintain transparency and account for their operations.

Furthermore, the activities of electricity generation companies (GenCos), transmission operators and distribution companies must be subjected to regular independent performance assessments. Operators that consistently fail to meet their contractual obligations should face appropriate sanctions, while those demonstrating efficiency and improved service delivery should receive the necessary incentives.

Another critical issue requiring urgent attention is the persistent collapse of the national electricity grid. Repeated grid disturbances expose the weaknesses of Nigeria’s transmission infrastructure and the failure to make adequate investments in modern equipment. Government must prioritise the rehabilitation and expansion of transmission facilities, strengthen the national grid and accelerate the development of alternative electricity distribution arrangements.

The problem of corruption and financial mismanagement must also be confronted. The power sector has consumed enormous public resources through interventions, bailouts, subsidies and other financial commitments. Yet, Nigerians continue to experience inadequate electricity supply. Government must commission comprehensive independent audits of public funds allocated to the sector and ensure that every naira spent produces measurable results.

Equally disturbing is the problem of electricity theft, illegal connections and vandalism of power infrastructure. These activities contribute to revenue losses and undermine the financial sustainability of the industry. However, enforcement must be balanced with public education, affordable access and improved customer service. Consumers cannot reasonably be expected to fulfil their financial obligations when operators fail to provide reliable services.

The ongoing electricity reforms under the Electricity Act 2023 also present an opportunity to address some of these challenges. The law provides a framework for greater participation by state governments in electricity generation, transmission and distribution within their jurisdictions. This decentralisation should be properly implemented to encourage investment, competition and innovative solutions to Nigeria’s electricity crisis.

Nevertheless, decentralisation must not become another avenue for political patronage, regulatory confusion and financial exploitation. State governments seeking to participate in the electricity market must demonstrate the technical and financial capacity to manage their responsibilities effectively.
There is also an urgent need to encourage renewable energy investment, particularly solar power, mini-grids and other alternative sources. Nigeria cannot continue to depend excessively on an unreliable national grid when millions of citizens remain without access to dependable electricity. A diversified energy mix would help improve electricity access, particularly in rural communities and underserved areas.
However, the most important requirement for sanitising the sector is political will. Successive administrations have announced ambitious electricity reforms without demonstrating sufficient commitment to addressing the fundamental problems. Government must be prepared to confront powerful interests, expose financial irregularities and hold influential individuals and institutions accountable, irrespective of their political connections.

The National Assembly also has an important responsibility to strengthen legislative oversight of the sector. Public hearings, independent investigations and regular reviews of the activities of electricity operators should become meaningful instruments for ensuring accountability rather than political exercises.

Above all, consumers must be treated as important stakeholders rather than helpless sources of revenue. There should be transparent billing systems, adequate metering, effective complaint-resolution mechanisms and compensation for consumers who suffer prolonged service failures in accordance with applicable regulations.
Nigeria’s power sector cannot be sanitised through cosmetic reforms, tariff increases or political declarations. It requires a fundamental restructuring of the industry’s governance, financial management and operational standards.
The Federal Government must therefore rise to the challenge by initiating a comprehensive review of the sector, strengthening regulatory institutions, investigating allegations of corruption, enforcing contractual obligations and ensuring that electricity operators are held accountable for their performance.
Nigerians have endured years of darkness, economic hardship and unfulfilled promises. They deserve an electricity system that works, not one that continuously demands more money while delivering less service.
The time has come to end the culture of impunity, inefficiency and exploitation in the power sector. Until transparency, accountability and competence become the guiding principles of the industry, Nigeria’s quest for stable electricity will remain an elusive dream.

A functional power sector is not a luxury; it is the foundation of industrial growth, economic prosperity and national development. Government must act decisively before the crisis inflicts even greater damage on the nation’s economy.

President Bola Ahmed Tinubu’s administration must demonstrate the political courage to confront the powerful interests that have held Nigeria’s electricity sector hostage for decades. The Federal Government cannot continue to spend public funds on interventions, announce new reforms and increase electricity tariffs without demanding corresponding improvements in service delivery.

Nigerians deserve to know how much public money has been committed to the sector, what results have been achieved and who should be held accountable for persistent failures.

NERC must also rise above regulatory complacency and demonstrate that it has the authority, independence and determination to discipline erring operators. Electricity distribution companies that consistently fail to meet their obligations should not be allowed to hide behind excuses while imposing questionable bills and demanding higher payments from frustrated consumers. Where necessary, government must review the ownership, management and operational arrangements of companies that have demonstrated persistent incapacity.

The National Assembly, on its part, must intensify its oversight responsibilities and ensure that investigations into the sector’s financial and operational failures produce concrete consequences. Those found culpable of corruption, financial recklessness or abuse of public resources must be made to face the law, regardless of their political or economic influence.

More importantly, government must stop treating electricity as a privilege that Nigerians should struggle to purchase at exorbitant costs. Reliable electricity is fundamental to economic development and the welfare of citizens. A country that cannot guarantee stable power cannot realistically aspire to industrialisation, job creation and sustainable economic growth.

The Tinubu administration must therefore make the sanitisation of the power sector a national priority. It must move beyond rhetoric and embark on a transparent, measurable and uncompromising reform programme that restores public confidence in the industry.

Nigeria cannot continue to operate in darkness while those entrusted with managing its electricity sector enjoy the benefits of a system that has failed millions of citizens. The time for excuses is over. The time for accountability, genuine reforms and reliable electricity is now.

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