Attempts by the Tinubu administration to resolve Nigeria’s chronic power supply issues through increased electricity tariffs are unlikely to succeed, according to energy expert Nick Agule.
Speaking during an interview on Arise TV on Tuesday, Agule emphasized that raising tariffs alone will not deliver reliable electricity, and called instead for a fundamental restructuring of the power sector, with infrastructure development at its core.
Reacting to recent comments by Minister of Power, Adebayo Adelabu, who celebrated a new power generation peak of over 5,000 megawatts, Agule described the development as “good news,” but questioned whether it was worth celebrating. “Is it a good thing? Yes. Is it good news? Yes. But should we celebrate? The answer is probably not,” he said.
Agule illustrated the scale of Nigeria’s energy challenges by comparing the country’s output with that of other nations. While Nigeria, with over 200 million people, struggles to generate around 5,000 megawatts, South Africa, with just 65 million people, produces 55,000 megawatts.
Brazil, with a population similar to Nigeria’s, generates 150,000 megawatts, and even Qatar, with only 3 million residents, supplies 8,000 megawatts. “So, you can see that three million people are enjoying more electricity than Nigeria, which has 200 million people,” he noted.
The real issue, Agule explained, lies in Nigeria’s outdated and inefficient transmission and distribution networks. He cited reports of transmission equipment that is up to 50 years old and no longer serviceable, preventing much of the generated power from reaching end users.
He dismissed the Minister’s belief that increased tariffs could bring about uninterrupted electricity, stating plainly, “Tariffs are not going to give us 24/7 electricity that he is hoping for.”
Nick Agule urged the federal government to focus on structural reforms, especially in the area of transmission, to expand capacity and deliver power to consumers.
Drawing a comparison to Nigeria’s successful telecommunications reform under President Obasanjo, Agule said that massive investments from serious operators transformed the telecoms landscape.
“The electricity companies have not invested that hundred billion dollars that the telecoms companies did. That is where the real issue is, and that is what the Minister should be focusing on, and not tariffs,” he added.
He concluded by calling on President Tinubu and the Ministry of Power to attract major international investors with the capacity to overhaul Nigeria’s power infrastructure, warning that without such commitment, tariff increases alone will do little to solve the nation’s deep-rooted energy crisis.
