Business News of Wednesday, 11 June 2025

Source: www.guardian.ng

Stakeholders fault national power policy, warn of looming energy disintegration

Electricity power Electricity power

Energy stakeholders have voiced fresh concerns over the recently unveiled National Integrated Electricity Policy and Strategic Implementation Plan (NIEP), describing it as a total disconnection from Nigeria’s current energy realities and lacking credible pathways for funding and long-term sustainability.

They emphasised the need for a comprehensive review of the NIEP, arguing that several of its provisions are impractical and misaligned with the stipulations of the Electricity Act (EA).

A user on the social media platform X (formerly Twitter) envisioned a future in which “every single rooftop will be completely covered by solar panels,” insisting that Nigeria’s path to energy sufficiency lies not in its “non-existent grid,” but in “decentralised, independent power,” comparing the shift to how boreholes replaced unreliable public water systems.

Echoing this sentiment, Executive Director of PowerUp Nigeria, Adetayo Adegbemle, criticised policymakers for failing to maintain the national grid as the backbone of the country’s power sector. “Instead of formulating policies that ensure the grid remains central to Nigeria’s electricity system, more effort has gone into fragmenting it,” he said.

Adegbemle highlighted that the persistent failure of the national grid to deliver basic, reliable, and affordable electricity has driven many Nigerians to seek alternative energy sources.

“Manufacturers have completely abandoned the grid, and many households are also switching to alternative power,” he noted, warning that this trend could render Nigerian industries uncompetitive globally and further undermine public trust in the grid.

“What this means, essentially, is that Nigeria risks becoming a nation without industry, as our businesses will be unable to compete internationally. Meanwhile, homes will continue to move away from the grid because alternatives are becoming cheaper and more reliable. This reflects a fundamental flaw in the belief that if Nigerians can afford to run generators, they can afford to pay more for inadequate grid supply,” he said.

The Nigerian Electricity Regulatory Commission (NERC) has reported multiple grid collapses in recent years, with severe economic consequences.
Adegbemle raised doubts about the feasibility of these projections, citing overly ambitious targets and a lack of clarity on funding.

He also criticised the emphasis on renewables without addressing underlying infrastructure gaps, drawing comparisons to past initiatives that failed due to similar oversights.

“One major issue with the NIEP is the focus on increasing the use of renewables, especially solar, to over 60 per cent by 2035. We’ve seen a similar one-sided approach during the Obasanjo administration, which heavily promoted gas.

“There are other issues, such as the status of NBET. I’ve written a 21-page analysis of the NIEP, but unfortunately, I’m not the consultant paid to develop it, and it appears those in charge aren’t interested in alternative voices,” he said.

Electricity market analyst, Lanre Elatuyi also questioned the practicality and economic viability of adopting rooftop solar as a nationwide solution.

He acknowledged that while many Nigerians understandably turn to alternatives due to the grid’s inadequacy.

Elatuyi noted that in some areas, decentralised energy solutions may be more cost-effective, particularly where grid extension is financially unfeasible and affordability challenges exist.

He added that, as a matter of policy, the government often prioritises such decentralised approaches to improve access for vulnerable, unserved, and underserved communities, in line with its commitment to universal electricity access.