Key Points
- Energy expert Dr. Olukayode Akinrolabu has called on the newly appointed Minister of Power, Mr. Joseph Tegbe, to provide “practical and sustainable solutions” to Nigeria’s electricity challenges.
- The appointment of Mr. Tegbe by President Bola Tinubu on May 1 comes during a “critical time” for the nation’s energy sector.
- Immediate priorities identified for the minister include halting persistent grid collapses and achieving at least “six months without a total system collapse”.
- The expert advocated for the rollout of at least “two million meters” via private sector-driven initiatives to eliminate estimated billing.
- Recommendations for sector liquidity include the “securitisation of legacy debts” estimated at over N6 trillion and a naira-based payment system for gas-to-power transactions.
Main Story
Energy expert Dr. Olukayode Akinrolabu has issued a direct challenge to the newly appointed Minister of Power, Mr. Joseph Tegbe, to move beyond promises and deliver measurable outcomes for the Nigerian power sector.
Speaking with the News Agency of Nigeria, Akinrolabu emphasized that the minister’s performance would be a decisive factor in Nigeria’s broader economic growth.
He noted that the public expects “decisive action to stabilise the system and restore public confidence,” particularly regarding grid stability and the transparency of the electricity market.
Akinrolabu argued that “trust begins with numbers, not promises,” and urged the minister to provide “cash clarity” by disclosing the sector’s debt profile and establishing a credible repayment framework.
He identified liquidity as the sector’s “lifeblood,” warning that the inability of generation companies to procure gas due to unpaid debts is a primary driver of reduced power generation.
To resolve this, he proposed stricter remittance enforcement for distribution companies and the adoption of a naira-based payment system for gas transactions to mitigate foreign exchange risks.
Addressing technical failures, the expert highlighted the urgent need for infrastructure upgrades. He identified weak transmission systems and the lack of a functional “Supervisory Control and Data Acquisition (SCADA) system” as major causes of instability.
Akinrolabu also pointed out that Nigeria’s spinning reserve is currently “significantly below global standards,” leaving the grid highly vulnerable to collapse. He concluded by advocating for a “balanced framework” for electricity tariffs, insisting on the principle of “no service, no premium tariff” to ensure consumers only pay for value received.
The Issues
- Persistent system collapses are driven by “weak transmission systems” and “inadequate protection mechanisms”.
- Unpaid generation companies are currently “unable to procure gas,” leading to a cycle of reduced power and increased grid failure risks.
- A lack of transparency in billing continues to erode consumer trust, necessitating an accelerated “rollout of at least two million meters”.
- Weak enforcement has led to inefficiencies across the value chain, specifically regarding “remittance enforcement for distribution companies”.
- The current system for gas-to-power transactions is exposed to foreign exchange fluctuations, which the expert suggests mitigating through “naira-based payment”.
What’s Being Said
- “Nigerians expect at least six months without a total system collapse. Anything less will not inspire confidence.” — Dr. Olukayode Akinrolabu
- “Trust begins with numbers, not promises.” — Dr. Olukayode Akinrolabu
- “No service, no premium tariff.” — Dr. Olukayode Akinrolabu
What’s Next
- The minister is expected to prioritize the completion of the SCADA system to enable “real-time grid monitoring”.
- Steps may be taken toward the “securitisation of legacy debts” estimated at over N6 trillion to improve market liquidity.
- Plans are anticipated for a “private sector-driven initiative” to deploy millions of meters to consumers.
- The administration is urged to expand “lifeline tariffs” and enforce service-based bands to protect low-income consumers.
- Increased investment in “embedded generation” and private sector participation in transmission maintenance are recommended for the coming months.
Bottom Line
Power Performance. The success of the new Minister of Power will be measured by his ability to secure the national grid and restore financial liquidity to a sector currently burdened by trillions in legacy debt and technical inefficiencies.
