Nigeria’s electricity debate has once again taken center stage, with critics often drawing comparisons to Western nations without fully understanding how those systems actually function. Take Canada, for example—a country frequently cited in discussions about stable power supply. Contrary to popular belief, electricity in Canada is not managed by the central government. Instead, it is largely handled by provincial authorities and private sector operators, reflecting a decentralized and commercially driven energy model.
This structure is not unique to Canada. Across advanced economies like the United Kingdom and the United States, electricity generation and distribution are primarily driven by private companies and subnational governments. Central governments typically focus on policy direction and regulation, rather than direct participation in power generation. These systems have evolved over decades, proving that sustainable electricity supply often thrives under private-sector efficiency and localized governance.
This is the same framework that Bola Ahmed Tinubu aims to strengthen in Nigeria. Since the landmark power sector privatization on November 1, 2013, Nigeria has gradually transitioned away from government-controlled electricity generation. Today, most power generation assets are owned and operated by private investors and, increasingly, state governments.
For instance, major facilities such as the Olorunsogo and Omotosho I power plants are now privately owned by Adedeji Adeleke, a prominent Nigerian businessman and father of music star Davido. Similarly, the Geregu Power Plant has operated under private ownership, previously linked to billionaire investor Femi Otedola. These examples underscore a critical shift: the Federal Government is no longer the primary generator of electricity.
Globally, central governments rarely succeed in running commercial power enterprises efficiently. Their role is better suited to regulation, policy formulation, and creating an enabling environment for investment. In Nigeria, this responsibility lies with the Nigerian Electricity Regulatory Commission (NERC), which oversees tariffs, licensing, and market discipline.
One key exception remains the national transmission grid, which is still publicly owned. However, even this segment is under consideration for privatization or restructuring. Importantly, transmission infrastructure can only distribute what is generated—making generation capacity and financial sustainability the true backbone of the sector.
And this is where Nigeria’s most pressing challenge lies—not necessarily in policy, but in payment culture. A significant number of electricity consumers either underpay or do not pay at all. This widespread non-compliance has created a massive liquidity crisis within the sector. Power-generating companies (GenCos) and distribution companies (DisCos) are reportedly owed trillions of naira, severely limiting their ability to reinvest, expand capacity, or maintain infrastructure.
Electricity theft, including illegal connections and meter bypassing, further compounds the problem. These practices not only reduce revenue but also damage equipment and destabilize the grid. In extreme cases, enforcement officials and technicians face harassment or violence while attempting to disconnect defaulters—highlighting the deep-rooted challenges of accountability in the system.
Against this backdrop, it becomes increasingly difficult to attribute Nigeria’s electricity challenges to individual initiatives or political affiliations. For instance, criticisms directed at Seyi Tinubu and his privately funded City Boy Movement overlook the structural realities of the power sector. Personal or political activities do not directly influence the operational and financial complexities of electricity generation and distribution.
What is often overlooked, however, is the foundational work carried out during Tinubu’s tenure as Governor of Lagos State. His administration pioneered state-level Independent Power Projects (IPPs), setting a precedent for subnational participation in energy generation. Projects such as the Alausa (10.4MW), Akute (12.55MW), Lagos Island (10MW), Mainland (8.8MW), Lekki Peninsula (6MW), and Marina IPPs were developed through strategic partnerships with private investors.
These initiatives significantly improved power supply to critical government facilities and laid the groundwork for Lagos State’s economic expansion. Today, Lagos boasts an economy estimated to be multiple times larger than it was in 1991, when it ceased being Nigeria’s capital—an achievement partly supported by improved infrastructure, including power.
Ultimately, meaningful discourse on Nigeria’s electricity sector requires more than surface-level criticism. It demands a clear understanding of how power markets function globally and locally. The challenges are complex—ranging from financial deficits and infrastructure gaps to consumer behavior and regulatory enforcement.
Constructive engagement, backed by facts and industry knowledge, is essential. Without it, public conversations risk becoming noise rather than contributing to the sustainable solutions Nigeria urgently needs.
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