Electricity is the backbone of any modern economy, fueling innovation, industry, and social development. Across Africa, countries such as Ghana, South Africa, Egypt, and Kenya have managed to provide their citizens with more regular and affordable electricity, creating an environment where businesses thrive, and homes function without the worry of frequent power outages or exorbitant costs. These nations have set an example of what is possible when a country’s energy sector is properly managed and maintained.
Nigeria, with its massive population and wealth of natural resources, should have been one of the first to achieve this feat. Yet, despite its potential, Nigeria remains stuck in an energy crisis that leaves much to be desired. Ostensibly to catch up with some African countries which offer regular and affordable electricity to their citizens, Nigeria has in recent months introduced a new electricity tariff structure, with bands such as A, B, and C, resulting in more consistent power supply. However, this has come at a high cost, as affordability has become a pressing concern for many consumers.
This begs the question: “If smaller African nations with fewer resources have achieved affordable and regular electricity, why has Nigeria, the giant of Africa, failed to do the same?”
For instance, Ghana is often hailed as one of Africa’s success stories in electricity provision. After undergoing severe power crises in the past, the country implemented structural reforms that have significantly improved its electricity generation and distribution. Ghana has invested heavily in its energy sector, diversifying its energy sources to include hydropower, natural gas, and solar power. Today, the country boasts one of the most reliable electricity grids in West Africa, with over 85% of its population having access to electricity.
More impressively, the cost of electricity in Ghana remains relatively affordable compared to Nigeria. This is because of the government’s proactive approach in subsidizing electricity for lower-income households while ensuring a consistent supply. The Electricity Company of Ghana (ECG) also ensures transparency and accountability in its operations, which helps to maintain consumer trust.
In a similar vein, Kenya has emerged as a leader in renewable energy, making significant strides in achieving regular and affordable electricity for its citizens. The East African nation has focused on geothermal energy, which accounts for over 45% of its electricity generation. Kenya’s investment in renewable energy has not only improved the reliability of electricity supply but has also driven down costs, making it one of the most affordable in Africa.
In rural areas, the government has implemented off-grid solar systems to ensure that even remote communities can access power. This strategic approach to energy diversification has allowed Kenya to achieve almost 80% electricity coverage, with the goal of reaching 100% by 2030. As a result, Kenya has become a benchmark for other African nations, including Nigeria that are struggling with electricity provision.
While South Africa is currently experiencing electricity challenges due to aging infrastructure and the country’s reliance on coal, it remains one of the few African countries that has historically provided affordable and regular electricity. For decades, South Africa’s electricity system was one of the most robust on the continent, delivering power to over 85% of its population at relatively low costs.
Despite recent issues with load shedding, South Africa’s state-owned utility, Eskom, still manages to keep electricity rates affordable for most citizens. The South African government is now working to diversify its energy sources by investing in renewables like solar and wind power to ensure that its citizens can continue to enjoy affordable and regular electricity in the future.
Egypt is another African country that has made remarkable strides in its energy sector. The North African giant invested billions of dollars into modernizing its power grid, which includes one of the largest solar parks in the world at Benban. Egypt has also successfully reformed its energy pricing system, ensuring that electricity remains affordable for its citizens.
In addition to modernizing its infrastructure, Egypt has reduced energy subsidies over time in a way that balances affordability with sustainability. This ensures that while the government reduces its financial burden, the cost of electricity remains within reach for both households and businesses. Egypt’s commitment to renewable energy has not only made it a leader in Africa but has also helped stabilize its electricity supply, achieving almost universal access.
Nigeria’s electricity sector tells a starkly different story. Despite being Africa’s largest economy and boasting enormous reserves of oil and natural gas, the country has struggled for decades to provide stable and affordable electricity to its citizens. The introduction of tariff bands like A, B, and C has led to more consistent supply for some areas, but this improvement has been overshadowed by soaring costs, which have made electricity unaffordable for many Nigerians.
Given the foregoing situation in Nigeria’s energy sector, not a few people have commented that the reasons for Nigeria’s ongoing electricity woes are multifaceted, blaming the country for so much dependency on fossil fuels. Their reasoning cannot in any way be faulted as it is crystal clear that Nigeria’s heavy reliance on natural gas and fossil fuels for electricity generation makes the country vulnerable to fluctuations in global energy prices. When the price of gas rises, so does the cost of electricity generation, leading to higher tariffs for consumers. This reliance on a single source of energy also limits Nigeria’s ability to diversify and stabilize its energy supply.
Also been mentioned for the umpteenth times as one of the reasons for poor and costly electricity supply is poor Infrastructure. The foregoing view can be buttressed against the backdrop of the outdated power infrastructure in the country; even as the infrastructure is poorly maintained leading to frequent breakdowns and inefficiencies. In fact, transmission and distribution networks are plagued with energy losses, which further contribute to the high cost of electricity. Without significant investment in upgrading these systems, Nigeria will continue to struggle with both regularity and affordability.
In fact, not a few people’s views have either being read or heard in the media saying that corruption has been a major stumbling block in Nigeria’s energy sector. As gathered, they often say that the privatization of the power sector, which was meant to bring about efficiency and improvement, has been hampered by vested interests and mismanagement, resulting to a system where power distribution companies (DisCos) often underperform, leaving consumers with erratic service at exorbitant prices.
For years, successive Nigerian governments have promised reforms in the power sector, but these promises have rarely been fulfilled. Political leaders often shy away from the difficult decisions needed to overhaul the system, such as cracking down on corrupt practices or fully liberalizing the energy market. The absence of strong political will to tackle these issues head-on has left Nigeria lagging behind its African counterparts.
At this juncture, it is expedient to ask, “Is There a Way Out?” Absolutely, Nigeria has the potential to provide both affordable and regular electricity. If smaller African nations with fewer resources have succeeded, there is no reason Nigeria cannot follow suit. The solution lies in a combination of key steps that cut across energy diversification, investment in infrastructure, government accountability and 4. Public-Private Partnerships (PPP).
Given the foregoing, it is expedient to opine that Nigeria must prioritize the diversification of its energy sources by investing in renewable energy such as solar, wind, and hydropower. Renewables offer a more sustainable and cheaper alternative to fossil fuels and will reduce the country’s vulnerability to global energy price fluctuations.
In a similar vein, there is an urgent need to overhaul Nigeria’s electricity infrastructure. Upgrading transmission and distribution networks will reduce energy losses and improve efficiency. This requires significant investment from both the government and private sector, but the long-term benefits will far outweigh the costs.
Still in a similar vein, the Nigerian government must demonstrate the political will to hold DisCos accountable for their performance. Strengthening regulatory bodies such as the Nigerian Electricity Regulatory Commission (NERC) to ensure transparency and fairness in tariff pricing is critical to restoring consumer trust.
Added to the foregoing steps, Nigeria should explore public-private partnerships to finance energy projects and build more power plants. By working with foreign investors and multilateral agencies, Nigeria can access the funding needed to improve its energy sector and provide affordable electricity to its citizens.
In fact, the examples of Ghana, Kenya, South Africa, and Egypt show that regular and affordable electricity is not a pipe dream, it is achievable. Nigeria, with its abundant natural resources, has the potential to lead the continent in energy provision. However, without the necessary reforms, investments, and political will, the country will remain in the dark, while other African nations continue to shine.
It is time for Nigeria to harness its full potential and deliver what its people deserve: reliable, affordable electricity that powers growth and development. If other African countries can do it, why can’t Nigeria?
By Isaac Asabor
