FG targets 80% electricity access within five years

The Federal Government has announced a bold initiative aimed at increasing electricity access to over 80 percent within five years, marking a significant step toward addressing the nation's long-standing energy crisis. This pledge was made by Minister of Power, Joseph Tegbe, during a presentation at the Nigeria Economic Summit Group event in Lagos. The goal is to bridge the gap between installed and available power generation within three years, thereby enhancing the reliability of electricity supply for both residential and commercial users. The announcement comes amid growing concerns over the impact of unreliable power on Nigeria's manufacturing sector. According to the Ministry of Power, the country currently has 13,625 megawatts of installed grid capacity, yet only 4,854MW is consistently available. This means approximately 62 percent of the installed capacity remains underutilized. Realistic peak demand stands at around 20,000MW, highlighting a substantial shortfall. As a result, many businesses have turned to costly self-generation methods, which accounted for N16.5tn in spending in 2023, compared to just N1tn in grid revenue. The World Bank estimates that unreliable electricity causes an annual economic loss of $25bn, equivalent to between five and seven percent of the country's GDP. Minister Tegbe emphasized that the reforms will focus on strengthening key transmission corridors such as Lagos, Enugu-Port Harcourt, and Abuja-Kaduna-Kano. These corridors are critical for connecting industrial hubs and ensuring stable power distribution. The government plans to roll out seven million smart meters and train 5,000 personnel to enhance operational efficiency. Additionally, efforts are underway to link power directly to industrial zones through captive economic clusters, aiming to provide a more direct and reliable supply to manufacturing sectors. The initiative also includes the establishment of an independent electricity market designed to operate free from government interference. This move is intended to improve liquidity and sustainability in the power sector, while simultaneously reducing recurring debts and losses. The government has already started implementing these changes, with initial progress noted in the strengthening of transmission infrastructure and the rollout of metering systems. President Bola Tinubu’s vision of transforming Nigeria into a $1tn economy hinges significantly on the success of these reforms. Electricity is positioned as a cornerstone of this economic transformation, with the minister stating that reliable and affordable power is essential for Nigerian industries to compete effectively in the African Continental Free Trade Area (AfCFTA), which encompasses over 1.4 billion consumers. The Ministry of Power has outlined specific targets, including reducing Aggregate Technical, Commercial, and Collection (ATC&C) losses to below 16.92 percent within three years. This reduction is crucial for improving overall efficiency and ensuring that more generated power reaches end-users. The current level of ATC&C losses indicates inefficiencies in the system, which the government aims to rectify through targeted interventions. As part of its strategy, the government is also seeking private investment to bolster its efforts. The Lagos State Government, for instance, has set a target of supplying 3.5 gigawatts of power and is actively pursuing partnerships with private entities. Such collaborations are seen as vital for scaling up infrastructure and meeting the rising demand for electricity. With these initiatives in place, the Nigerian government is positioning itself to make significant strides in addressing the energy crisis. However, the road ahead remains challenging, requiring sustained effort and collaboration across all levels of governance. The coming months will be pivotal in determining whether these ambitious goals can be realized.