In light of recent developments, there is a growing call for the Nigerian Electricity Regulatory Commission (NERC) to take a stronger stance in directing the 11 electricity distribution companies (DisCos) to meet the standards set by other African nations in providing reliable and sustainable electricity. Currently, Nigeria is trailing in this regard, with many citizens frustrated by the inadequate electricity supply.
The question on the minds of many Nigerians is: “Is Darkness For Sale?” This reflects the bewilderment and dissatisfaction of consumers after the approval of a massive 300% increase in electricity tariffs for Band A consumers by NERC. The increase, effective from April 1, 2024, will see urban consumers paying N225 ($0.15) per kilowatt-hour, up from N68 previously.
Critics argue that, given the current performance of the 11 DisCos, there is no justification for such an increase. The power distribution companies continue to provide subpar services across the six geopolitical zones, with frequent outages, poor customer service, and unreliable billing practices. Many believe that before implementing any tariff hikes, NERC should have enforced better service delivery and ensured that the DisCos adopted compensatory measures, similar to what is commonly seen in the telecommunications industry. For instance, when telecom companies experience service disruptions, they often compensate customers with free airtime. Why, critics ask, should electricity consumers not receive similar compensation for service failures?
The electricity sector in Nigeria operates in an oligopoly, meaning a few firms control the market. While this structure might seem to ensure stability, it has not fostered the level of competition and service quality that Nigerians deserve. In this context, NERC is urged to hold the 11 DisCos accountable for their inadequate service delivery before allowing them to raise tariffs. After all, if consumers are not receiving reliable electricity, they are essentially being forced to pay for “darkness,” which has no intrinsic value.
Many Nigerians, particularly in light of President Bola Ahmed Tinubu’s campaign promises, had expected significant improvements in the power sector by now. Unfortunately, the performance of the DisCos has not lived up to these expectations. When compared with several African countries that have made significant strides in ensuring consistent electricity access, Nigeria seems to be lagging behind.
For instance, Egypt has achieved a remarkable 100% electricity access rate for both its rural and urban populations. The country primarily relies on hydropower and thermal power stations, while also advancing its renewable energy initiatives. Egypt plans to further expand its reach by exporting surplus power to Europe, the Middle East, and sub-Saharan Africa.
Similarly, Morocco, with a similar 100% electricity access rate, is making strides in renewable energy, particularly solar power, and aims to increase its renewable energy mix to 52% by 2030. Tunisia, another African leader in electricity provision, also boasts of 100% electricity access, with the majority of its energy sourced from natural gas and long-term renewable investments.
Algeria follows closely with a 99.8% access rate and generates the majority of its electricity from natural gas. Gabon, with a 91.6% access rate, has a significant urban-rural divide, with the urban population having nearly full access. Ghana, with an access rate of 85.9%, is also making steady progress, particularly with its natural gas reserves and renewable energy initiatives.
These nations have made impressive strides in ensuring that their citizens have reliable electricity, which has contributed to economic development and improved living standards. In light of these achievements, it becomes increasingly apparent that Nigeria needs to step up its game to meet the electricity demands of its people and foster economic growth.
Given these examples, there is a strong case for urging NERC to implement policies that will force Nigeria’s DisCos to catch up with their African counterparts. The call is clear: Nigeria must improve its electricity provision to meet the expectations of its citizens and align with the progress seen across the continent.
