Tinubu Talks About Power Challenges and Promises Changes

President Bola Tinubu has defended his government's plans for the economy and power sector. He says every Nigerian deserves access to reliable electricity, which he calls a "democratic dividend."

In his Democracy Day speech on Friday, Tinubu recognized the ongoing problems in the electricity sector. He said the reforms aim to fix years of underinvestment, lack of infrastructure, and financial issues.

"Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it," the president stated.

Tinubu explained that his administration took over a power sector with serious issues. This includes constant shortfalls in electricity generation, unreliable gas supplies, weak transmission systems, and significant losses in distribution. He mentioned a metering deficit of over four million customers.

He noted that the sector also has heavy legacy debts. This situation has caused electricity generation, transmission, distribution, and revenue collection to drop below sustainable levels.

"By 2023, when we came on board, the electricity sector was characterised by chronic generation shortfalls, an unreliable gas supply, and transmission infrastructure so fragile that it could not evacuate available power," he said.

"The result was a sector that generated less than the 13,500 megawatts installed capacity, transmitted less than it generated, distributed less than it transmitted and collected revenue far below what it needed to sustain itself."

Despite large investments in generation over the years, many problems remain. These include low plant availability, gas supply issues, maintenance problems, transmission failures, and an old grid. The national grid often collapses, leading many families to search for other power sources.

Many homes and businesses are now using costly solar systems and generators as alternatives. Rising fuel prices in recent months, due to the US-Israel conflict with Iran, have made these alternatives too expensive for many Nigerians. This is happening while people are already facing a serious cost-of-living crisis.

To tackle these problems, Tinubu said he signed the Electricity Act. This law gives more power to states to generate, transmit, and distribute electricity in their areas.

He also mentioned the Presidential Power Sector Task Force. This group is tasked with addressing the metering deficit and has received approval to raise a N4 trillion bond to pay off verified legacy debts in the electricity sector.

The president pointed out the work of the Rural Electrification Agency. This agency, with support from the World Bank and the African Development Bank, is working to expand electricity access through off-grid and mini-grid projects in areas that need it. This includes underserved communities, schools, markets, and hospitals.