The year 2024 was a challenging one for Nigeria’s power sector, with recurring grid collapses, vandalism of electricity infrastructure, and ongoing policy challenges. Key developments in the sector, from national grid failures to tariff hikes and infrastructure issues, painted a tumultuous picture of the country’s energy landscape. Below is a detailed analysis of the major events that shaped Nigeria’s power sector in 2024.
Frequent Grid Collapses
The Nigerian national grid collapsed 12 times in 2024, leading to widespread power outages.
The first collapse occurred on February 4 due to a system failure reported by electricity distribution companies (DisCos).
Subsequent collapses on March 28, April 15, July 6, and August 5 were attributed to gas constraints and technical faults, including a fire incident at the Afam power station.
October alone witnessed multiple collapses, including incidents on October 14, 15, and 19, with one attributed to vandalism and another to a precautionary shutdown at the Jebba transmission substation.
The year ended with collapses on November 5, November 7, and December 11.
The Transmission Company of Nigeria (TCN) consistently attributed these disruptions to vandalism, system constraints, and generator failures.
Vandalism of Infrastructure
Vandalism remained a major setback, with critical infrastructure repeatedly targeted:
In March, the Shiroro-Katampe 330 kV line was vandalized for the fifth time within two months.
Bayelsa State was plunged into months of darkness in August when vandals destroyed two transmission towers along the Ahoada/Yenagoa line.
Between January and November 2024, 128 transmission towers were vandalized, costing the government approximately ₦8.8 billion in repairs.
Minister of Power, Adebayo Adelabu, advocated for stringent penalties, including the death penalty, for vandals. However, prosecution of offenders remained inconsistent, with many suspects released on bail.
Tariff Increases and Controversy
Electricity tariffs were adjusted multiple times in 2024:
In April, the Nigerian Electricity Regulatory Commission (NERC) approved a hike, raising tariffs for Band A customers from ₦68 to ₦225 per kilowatt-hour (kWh).
Amid public backlash, DisCos announced a slight reduction in May, lowering tariffs to ₦206.80/kWh. However, another hike followed in July, increasing rates to ₦209.50/kWh.
The House of Representatives intervened, urging a suspension of tariff hikes, but the measures remained in place.
The government justified these adjustments as necessary to improve liquidity in the power sector, but the hikes sparked widespread criticism.
Unbundling of TCN
In line with the Electricity Act of 2023, NERC officially unbundled the Transmission Company of Nigeria into two entities:
Nigerian Independent System Operator Nigeria Limited (NISO): Focused on operational oversight of the grid.
Transmission Service Provider (TSP): Responsible for maintaining and expanding transmission infrastructure.
This restructuring was aimed at enhancing efficiency and attracting investments into the sector.
Persistent Metering Gaps
Metering remained a key challenge in the power sector. Despite several initiatives, the metering gap persisted.
In April, NERC deregulated meter access, allowing consumers to procure meters directly from Meter Asset Providers (MAPs).
Minister Adelabu announced the delivery of 1.3 million meters between December 2024 and Q2 2025, with the first phase expected to arrive by year-end.
Outlook for 2025
Experts predict significant growth in Nigeria’s power sector in 2025, driven by domestic gas demand and renewable energy development. Ogunrinde Adeola, an energy expert, emphasized the importance of addressing infrastructure deficits and policy uncertainties to unlock the sector’s full potential.
By tackling these challenges, Nigeria could harness its energy resources, drive economic growth, and provide reliable electricity to its citizens.