Power supply crisis may linger, PENGASSAN warns

Nigerians looking forward to improved electricity supply may continue to wait as the dismal nature of the power sector may not change any time soon, the Petroleum and Natural Gas Senior Staff Association of Nigeria stated on Thursday.

PENGASSAN outlined several reasons why Nigeria’s power supply situation would not improve in the near future, stressing that this was despite the economic significance of electricity to the country.


The association’s President, Festus Osifo, who disclosed this at the 7th Triennial National Delegates Conference of PENGASSAN in Abuja, also warned the Federal Government against selective implementation of the Petroleum Industry Act 2021.

Commenting on the power crisis in Nigeria, Osifo said, “Although electricity is considered a major determinant of economic development as access to electricity is expected to catalyse nations in the drive for industrialisation, supply to homes and businesses, this has remained abysmal in Nigeria on the backdrop of a flawed privatisation exercise.

“Averaging 4,500 megawatts in the past eight years, Nigerians looking forward to improved electricity supply may continue to wait as inherent challenges may stall power generation in the current.

“Going by industry statistics, not only have gas-related issues affected the country’s generation, dispatch of the generated electricity remains elusive as transmission and distribution bottlenecks are frequently blamed for the capacity to wheel power to end-users.”’

Osifo pointed out that the power sector was currently grappling with a severe debt burden, adding that the poor foreign exchange rate situation in the country was halting the adequate acquisition of tools to run the electricity supply industry.

“With huge debt and equity servicing challenges, operation and maintenance barriers, dearth of new investments, poor credit rating and poor business viability image to investors, the dismal outlook of the power sector may not change in 2023 or any time soon.

“There are also indications that the worsening exchange rate crisis in the country would drastically impede the sector as the majority of tools and equipment used in the sector are dollar based. In spite of these, the consumer is made to pay for the inefficiency of the operators and the regulator,” Osifo stated.