The Dilemma of Nigeria’s National Grid: A Case for Regional Autonomy in Power Generation.
By Abayomi Odunowo Managing Director Community Power Solutions ((CPS)
Nigeria, a nation rich in resources and potential, stands as one of the very few countries trying to operate a single national grid. In a world where most large countries effectively manage regional and embedded grids, Nigeria’s approach seems increasingly archaic and ineffective. The idea of feeding all generated power into a single national grid before transmitting it to various regions is a colossal headache that often leads to power shortages, inefficiencies, and frustrations.
Imagine a country where power plants strategically located near their consumers harness energy to meet the local demand directly. In Nigeria, this could be the reality if we embraced a decentralized power generation model. The Egbin thermal plant in Ikorodu, with its impressive output of 1,250 MW, should ideally serve Lagos directly. Similarly, the Papalanto power plant should cater exclusively to Ogun State, while Omotoso serves Ondo. Sapele and Ughelli could effectively power Delta and its surroundings, and Calabar, with its 150 MW plant, would supply Calabar without battling transmission losses.
Under the current model, however, we see a disconnection between infrastructure and demand. The Nigerian national grid suffers from a wheeling capacity of 7,000 MW, yet the peak generation capacity is often capped at 5,000 MW, far short of the base load demand of 22,000 MW for households alone, and a staggering 40,000 MW when accounting for industrial use. This dismal shortfall makes a daily collapse of the system an almost predictable occurrence, and yet, we continue to follow this flawed model with little questioning.
Transitioning to a regional power generation approach could not only enhance efficiency but also spur local economies. Regions like the Northeast, which currently lack any power plants, could come together to develop their resources, fostering a sense of community and collaboration that is sorely needed. This approach would end the absurdity of power generated in Calabar being transmitted to Kano—a journey that invites wastage and inefficiency, exacerbated by losses up to 25% in transmission. Global standards show that such losses typically hover around 1%, highlighting the inefficiencies in Nigeria’s energy infrastructure.
Furthermore, look at the United States, which boasts an astonishing 6,900 independently owned power plants and four regional grids generating over 1 million MW. China’s eight regional grids likewise exemplify successful decentralization, providing energy to their citizens with greater reliability and efficiency. Nigeria, in contrast, with its mere 23 oversized generators, operates under a flawed and outdated model, begging the question: are we not setting ourselves up for systemic failure?
It is time for Nigeria to rethink its approach. We must advocate for a shift from a single national grid to a more sensible and efficient regional power generation model. States like Kano and Calabar need to generate and manage their power independently, ensuring that local needs drive energy production and consumption. The 2013 Electric Power Sector Reform Act (EPSRA) provides the legal framework encouraging such autonomy, yet it remains underexplored and unutilized.
We must dissolve the National Bulk Electricity Trader (NBET), which has become more of a hindrance than a help. It is time to stop the excuses and instead promote regional collaboration for power generation. We cannot afford to let our progress be stifled any longer by a slow-moving national grid system that is an excuse for laziness and inefficiency.
Nigeria’s dependency on a national grid serves as a testament to our collective folly—a structured framework that hinders growth and fosters mediocrity. By embracing regional grids, we could not only harness our resources more efficiently but also pave the way for a more developed and prosperous Nigeria. As we stand at this crossroads, let us make the bold choice to change our energy landscape for the better.
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
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