Decentralising Nigeria’s Power Sector: A Vital Step Towards Stability and Security

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Nigeria faces an urgent need for the decentralisation of governmental powers, a reality underscored by the persistent security challenges and failures in essential services like electricity. Recently, the Nigerian Governors Forum (NGF) and the National Council of Traditional Rulers (NCTR) convened to advocate for the constitutional involvement of traditional rulers and local communities to enhance security. This highlights a broader call for decentralisation that includes critical infrastructure, particularly the national power grid.

Nigeria’s electricity crisis has become a symbol of the country’s over-centralisation issues. With a peak capacity of just 4,500 megawatts serving approximately 230 million people, the national grid is one of the most unreliable in the world. During former President Muhammadu Buhari’s administration (2015-2023), the grid collapsed 93 times. Under President Tinubu, the grid has already collapsed 14 times in less than two years, with recent incidents even leaving northern Nigeria in a blackout for two weeks, aggravating economic strain and public discontent.

Vice President Kashim Shettima, Chair of the National Economic Council (NEC), has recently advocated for the rapid decentralisation of the national grid, pushing for the implementation of the National Electricity Strategy Implementation Plan (NESIP) proposed by the Rural Electrification Agency (REA). Shettima emphasized the need for mini-grids, urging both private and public sectors to develop local power solutions without mandatory integration into the unstable national grid.

Historically, Nigeria’s energy framework was decentralised during British colonial rule, with regional grids supporting economic hubs in Lagos, Enugu, and Jos. However, the 1972 creation of the National Electric Power Authority (NEPA), merging the Electricity Corporation of Nigeria (ECN) and the Niger Dams Authority (NDA), established the national grid system that has since struggled to meet Nigeria’s growing demand. Despite name changes and privatisation efforts, the country remains one of the most poorly powered in the world.

In June 2022, former President Buhari announced initial steps toward grid decentralisation, enacting a constitutional amendment that transferred control over sectors like power, railways, and prisons from the Exclusive to the Concurrent List. This move allows states to explore localised energy solutions, a shift that could empower state and local governments, as well as private entities, to establish mini-grids and harness renewable energy sources like solar and wind, independent of the national grid.

The success of this policy hinges on government support to drive decentralisation. By actively promoting and facilitating local mini-grid projects, Nigeria can pave the way for a stable and reliable energy future, one that will alleviate the country’s reliance on an overburdened national system and provide communities with sustainable, locally-managed power solutions.

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