Nigeria plans 3,863MW power grid boost

Nigeria is gearing up to boost its power supply by adding about 3,863 megawatts of electricity to the national grid within the next 24 months. This ambitious plan comes at a crucial time for the country, as power shortages have plagued the nation for years, hindering economic growth and daily life for millions of Nigerians. The announcement was made by the Electricity Commission in June 2022, highlighting the government's efforts to address the longstanding power challenges in the country. Sam Chidoka, CEO of Kairos Capital, shared his insights on this development and expressed both optimism and caution regarding the plan. One of the key points raised by Chidoka was the need for disciplined execution of the plan, emphasizing that past promises and projections have often fallen short in the past. He raised concerns about the country's current distribution capacity and infrastructure, citing issues with the National Grid that have led to frequent shutdowns. Despite the challenges, Chidoka acknowledged the importance of expanding the power supply and urged for a focus on effective distribution to ensure the success of the plan. Additionally, the government's efforts to decentralize the National Grid through renewable-driven mini-grids and the provision of standalone solar systems in over 250 locations were discussed. Chidoka commended the move towards renewable energy sources and decentralized distribution, emphasizing the potential benefits for the country's power sector. However, he underscored the importance of continuity in government policies to prevent disruptions in such initiatives with changing administrations. Another significant development highlighted was the proposed Constitutional Amendment bill that would allow states to generate and distribute their own power. Chidoka noted the potential game-changing impact of this move, particularly for states that have invested in captive power and IPPs. The ability for states to control their power distribution could enhance their competitiveness and spur economic growth at the regional level. Reflecting on the past nine years since the power privatization in Nigeria, Chidoka pointed out the lessons learned from the process. While privatization was deemed necessary, he highlighted a critical oversight in the allocation of funds generated from asset sales. The failure to reinvest these funds into improving the distribution network has contributed to the current challenges in the sector, according to Chidoka. He stressed the importance of strategic investment and due diligence in assessing the capabilities of investors acquiring government assets to drive meaningful progress in the sector. In conclusion, Nigeria's power sector ambitions hold promise for addressing the longstanding issues of power shortages in the country. However, the success of these plans will hinge on effective implementation, infrastructure development, and policy continuity. With the clock ticking on the 24-month timeline set by the government, stakeholders will be closely watching the outcomes and hoping for a brighter future powered by a more reliable and efficient electricity grid.