Evaluation of the electricity sector in Nigeria thirteen years after its privatization

Thirteen years after the transfer of electricity generation and distribution companies in Nigeria to private hands, an analysis of the sector highlights persistent capacity problems, grid collapses, and high accumulated debt. Various economic actors point out that the lack of oversight and funding deficits continue to limit the supply.

The country's installed capacity exceeds 13,000 megawatts, although available generation remains between 4,000 and 5,000 megawatts. The national grid has suffered recent interruptions, including collapses recorded in early 2026, forcing households and businesses to rely on alternative fossil fuel-based energy sources.

Operating costs for industry have increased significantly. Sector reports indicate that the Manufacturers Association allocated millions to alternative energy during 2025, while the use of diesel and gasoline directly drives up production costs and the final price of consumer goods.

Experts and sector agents attribute the situation to deficiencies in initial implementation, a lack of effective regulation against delinquency, and a tariff system conditioned by political factors. Comprehensive audits, the completion of meter installations, and greater use of state electricity markets are proposed.