Grid Collapse: NEC Establishes Committee for States’ Participation in Electricity Reforms
The National Economic Council (NEC) on Thursday resolved that Nigeria needs a reformed and diversified electricity system, in addition to the existing national grid.
It also said empowering states with their electricity systems would enhance accessibility and affordability, allowing regions to effectively meet their unique energy needs.
Therefore, the council established a committee to strengthen states’ participation in the Electricity Reform Act 2023 and implement the National Electrification Strategy and Implementation Plan.
Governor Lucky Aiyedatiwa of Ondo state revealed this to State House Correspondents after the 146th meeting of the Council at the Aso Rock Villa, Abuja.
The committee members include Governor Bassey Otu of Cross River State as the Chairman; Governors Dikko Radda of Katsina State; Inuwa Yahaya of Gombe State; Ademola Adeleke of Osun State, Hope Uzodinma of Imo State and Caleb Mutfwang of Plateau State.
Others are the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu; Minister of Power, Adebayo Adelabu; the Special Advisers to the President on National Economic Council and Climate Change, Rukaiya El-Rufai as well as on Power, Sadiq Wanka; the Managing Director of the Rural Electrification Agency, Abba Aliyu; and the Managing Director of the Niger Delta Power Holding Company, Jennifer Adighije.
Aiyedatiwa said, “The council resolved that Nigeria needs a reformed and diversified electricity system, apart from the one from the National Grid; it further observed that by powering states, accessibility and affordability of electricity can be enabled, ensuring that all regions can effectively meet their specific energy needs.
“Council, therefore, constituted a committee on national electrification dedicated to deepening states’ engagement within the Electricity Reform Act of 2023 and the National Electrification Strategy and Implementation Plan.”
The council’s decisions come amid multiple grid failures and destruction of critical power infrastructure that leaves several states without power.
On November 7, major cities, including the Federal Capital Territory (Abuja), Lagos and Kano, suffered blackouts as the national grid collapsed for the 10th time in 2024.
The Transmission Company of Nigeria attributed it to a “partial disturbance of the system” but did not explain further.
Grid failures are not strange in one of Africa’s largest economies, whose power sector still suffers gross underinvestment, says the Special Adviser to the President on Energy, Olu Verheijen.
Despite an installed capacity of about 13,000MW, Nigeria’s power grid transmits only 4000MW due to ageing infrastructure, the Minister of Power, Adebayo Adelabu, told State House Correspondents at a briefing on October 28.
However, that amount is grossly inadequate for over 200 million citizens, leaving many areas without reliable electricity as individuals and government entities struggle to pay mounting power bills.
In addition to weak infrastructure, Nigeria’s power grid has also been a target of sabotage. In October, armed groups damaged the Shiroro-Kaduna transmission line, cutting electricity supply to 17 northern states.
Following the incident, repair crews could not access the site due to security concerns. Repairs began only after President Bola Tinubu directed the National Security Adviser to work with the Army and Air Force to deploy adequate security personnel, including aerial cover, to protect the engineers fixing the damaged transmission line.
According to Aiyedatiwa, the Council also received a detailed presentation on the National Electrification Strategy and Implementation Plan from the Managing Director of the Rural Electrification Agency, Abba Aliyu.
During the presentation, Aliyu elaborated on the agency’s efforts to extend rural electrification to institutions, healthcare facilities, and businesses across Nigeria.
He also highlighted key achievements, including electrification projects in educational institutions such as Alex Ekwueme Federal University, which benefitted from an upgraded renewable energy system in 2019, positively impacting over 9,500 staff and students.
The electrification chief said the improvements fostered better educational infrastructure and a sustainable learning environment by ensuring an uninterrupted energy supply.
In the healthcare sector, notable beneficiaries included Rivers State University Teaching Hospital and Niger Delta University Teaching Hospital in Okolobiri. Additionally, the agency provided electrification to an agricultural settlement in Ogun State, enhancing its operations.
To optimise resources, the Rural Electrification Agency emphasised the importance of private sector involvement in renewable energy integration. The Agency also sought greater participation from states by urging them to establish structures for NESIP integration within their respective State Development Plans.
For his part, the Minister of Budget and Economic Planning, Atiku Bagudu, revealed that the Council received a presentation from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Shehu Bello, on the alternative funding of revenue for the Commission.
“Council was called to note, first the institution’s mandate and its critical role in ensuring equity, and the implications of that. He, however, disclosed the challenge of inadequate funding, which severely constrains its capacity to effectively discharge the duties conferred on it by the Constitution.
“The implications of the under-funding were discussed, and the Council resolved that they appreciated the challenge being faced by the RMAFC and directed the Secretariat to study the submission regarding the quantum presented by the Commission and the legality of the request.
“The Council ratified the Board for the Nigeria Sovereign Wealth Investment Authority. Equally, the Council received a presentation about the financial statement of affairs, approved therein, and commended the Board and Management of the Sovereign Wealth Investment Authority.”
At the meeting, the Accountant-General of the Federation briefed council members on the account balances as of November 20, with the Excess Crude Account at $473,754.57; Stabilisation Account, ₦33,324,135,076.39 and the Natural Resources Account at ₦26,847,747,854.93.
