State of Nigeria’s electricity sector worsens —Investigation, As sector losses hit N25.77bn in two weeks

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With the privatisation of Electricity Generation Companies, GENCOS, Electricity Distribution Companies, DISCOS, expectations were high that it would culminate in improved power supply to Nigerians. But that was not to be. Investigations in many plants by UDEME AKPAN, Energy Editor, showed that operations were constrained by many challenges, including lack of liquidity, damaged components, inadequate gas as well as poor distribution and transmission facilities, thus resulting to huge losses, which stakeholders have promised to tackle this year.

With the privatisation of Electricity Generation Companies, GENCOS, Electricity Distribution Companies, DISCOS, expectations were high that it would culminate in improved power supply to Nigerians. But that was not to be. Investigations in many plants by Vanguard showed that operations were constrained by many challenges, including lack of liquidity, damaged components, inadequate gas as well as poor distribution and transmission facilities, thus resulting to huge losses amounting to N25.77 billion within the first two weeks of 2020.

This showed an increase of 33.56 per cent when juxtaposed against N19.28 billion recorded in the corresponding period of 2019. A compilation of data obtained from the office of Vice President Yemi Osinbajo, confirmed that Nigeria recorded N13.40 billion and N12.36 billion as losses due to constraints from insufficient gas supply, distribution infrastructure and transmission facilities in the first and second week of 2020, thus resulting in a total of N25.77 billion.

Distribution infrastructure

The data also indicated a rising trend in losses as the nation had recorded N10. 59 billion and N8. 69 billion in the first and second week of the corresponding period in 2019, which amounted to a total of N19.28 billion during the period.

One of the reports, stated: “On January 14, 2020, average energy sent out was 4,166 MWH/Hour (up by 256.15 MW from the previous day). 2,632 MW was not generated due to unavailability of gas. 93.6 MW was not generated due to unavailability of transmission infrastructure, while 728 MW was not generated due to high frequency resulting from unavailability of distribution infrastructure. 150 MW was recorded as losses due to water management.

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