Tinubu speaks on power sector challenges, pledges reforms

President Bola Tinubu has defended his administration’s economic and power sector reforms, saying access to reliable electricity remains a “democratic dividend” that every Nigerian deserves.

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In his Democracy Day address to Nigerians on Friday, Mr Tinubu acknowledged the persistent challenges in the electricity sector but said ongoing reforms were designed to reverse years of underinvestment, infrastructure deficits, and financial instability.

“Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it,” the president said.

Mr Tinubu said his administration inherited a power sector plagued by chronic generation shortfalls, unreliable gas supply, weak transmission infrastructure, huge distribution losses, and a metering deficit exceeding four million customers.

According to him, the sector was also burdened by significant legacy debts, creating a situation where electricity generation, transmission, distribution, and revenue collection all fell below sustainable levels.

“By 2023, when we came on board, the electricity sector was characterised by chronic generation shortfalls, an unreliable gas supply, and transmission infrastructure so fragile that it could not evacuate available power,” he said.

“The result was a sector that generated less than the 13,500 megawatts installed capacity, transmitted less than it generated, distributed less than it transmitted and collected revenue far below what it needed to sustain itself.”

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Despite enormous investments in generation infrastructure over the years, low plant availability, gas supply constraints, maintenance challenges, transmission hitches and ageing grid infrastructure continue to limit effective electricity delivery across Nigeria. The country’s national grid continues to suffer collapses intermittently, forcing many households to seek alternative power sources.

Many homes and businesses have resolved to use expensive solar systems and generating sets as alternatives.

Spikes in the cost of fuel in recent months, following the US-Israel war against Iran has further driven up energy costs, making such alternatives almost unaffordable for Nigerians, already grappling with a major cost-of-living crisis.

To address these challenges, Mr Tinubu said he signed the Electricity Act, which devolves greater authority to states to generate, transmit, and distribute electricity within their jurisdictions.

He added that the Presidential Power Sector Task Force has been mandated to tackle the country’s metering deficit and has received approval to raise a N4 trillion bond to clear verified legacy debts across the electricity value chain.

The president also highlighted efforts by the Rural Electrification Agency, supported by the World Bank and the African Development Bank, to expand electricity access through off-grid and mini-grid projects in underserved communities, universities, markets, and hospitals.

Economic reforms

Beyond the power sector, Mr Tinubu used the Democracy Day broadcast to defend broader economic reforms introduced since he assumed office in May 2023.

He said the measures, though difficult, were necessary to restore fiscal stability, improve public finances, and attract investment.

“The reforms we are undertaking were not chosen for ease, but for necessity,” he said.

According to the president, federation revenues have increased significantly since the reforms began, providing state and local governments with more resources for infrastructure, education, healthcare, and security.

He said fiscal transparency has improved, revenue leakages have been reduced, and investor confidence has returned, leading to increased investments in agriculture, manufacturing, technology, mining, transportation, energy, and the creative sector.

Mr Tinubu also pointed to growing domestic refining capacity, which he said is helping to strengthen Nigeria’s energy security and reduce dependence on imported petroleum products.

Tackling hardship

Despite highlighting what he described as progress in economic management, the president acknowledged that many Nigerians continue to face economic hardship.

READ ALSO: Economic reforms have restored credibility, stability – Tinubu

He said his administration remains focused on reducing inflation, increasing food production, creating jobs, and improving living standards.

Mr Tinubu also cited ongoing infrastructure projects across the country aimed at linking producers to markets and stimulating economic activity.

He noted that the National Agricultural Development Fund is implementing a programme to deploy 10,000 tractors over five years, while more than 1,000 small and medium-sized enterprises have been certified for export.

According to him, non-oil exports grew by 21 per cent in the last year.

“We are moving from uncertainty to stability. The next phase is about accelerating growth and ensuring the benefits are felt in every home, every community, and every region,” he said.

“We believe that democracy must be felt in the pocket.”