Grid collapses: Senate threatens to overturn power sector privatization
…Grid collapse costs Nigeria N42.5bn – Report
…Regulatory gaps, security challenges affect power sector — Chair, Senate C’ttee
The Senate on Thursday has declared the privatisation of the power sector a ‘total failure’ and threatened to repeal the policy due to the persistent grid collapses and lack of constant electricity supply.
The Chairman of the Senate Committee on Power, Senator Enyinnaya Abaribe, presented a report on the frequent national grid collapses, attributing the failures to aging infrastructure, abandoned projects, and regulatory inefficiencies.
Abaribe noted that the grid has suffered 105 collapses over the past decade, with significant costs incurred during grid failures, particularly in restarting power plants.
Abaribe highlighted that despite substantial investments in electricity infrastructure, the grid has suffered 105 collapses over the past decade.
He revealed the significant costs incurred during grid failures, particularly in restarting power plants.
According to the report, restarting a plant after a grid collapse (known as a black start) is considerably more expensive than normal operations.
For instance, while running costs for a plant like Azura, Delta, or Shiroro are approximately $105,000, restarting costs can reach $7m per incident.
Collectively, grid collapses cost Nigeria an estimated N42.5bn billion for these three plants alone, with broader implications for the entire power sector.
The report emphasised that the national grid, over 50 years old, is outdated and in urgent need of modernization to meet current operational standards.
Abaribe also noted other pressing issues, including operational inefficiencies, abandoned projects, regulatory gaps, security challenges, and the absence of Supervisory Control and Data Acquisition systems essential for real-time monitoring and management.
“Whenever a plant is shut down, they restart the plant and to restart it which they call a black start, it costs far more than running the plant.
“While it costs $105,000 to run the plant, to restart it will cost $7m. So anytime we have a shutdown occasioned by grid collapse, three plants in Nigeria, that supply most of our electricity, Azura, Delta, and Shiroro, to restart the plant cost Nigeria $25m or N42.5bn and if we expand it to the rest of the operating plants in Nigeria, it is actually not quantifiable,” he stressed.
“Aging infrastructure has been identified as a critical factor contributing to frequent grid failures. Many components of the grid are outdated and have not undergone necessary maintenance or upgrades, leading to increased vulnerability to failures,” he added.
Senator Adams Oshiomhole (APC, Edo North) criticised the privatisation policy, stating it imposed undue financial burdens on Nigerians.
“The Discos are out for profit while they make our people suffer. I never imagined that a private person would collect money for services he did not render and Nigerians are helpless. The privatised power sector is more of a failure now,” he said.
On his part, Senator Abdul Ningi (PDP, Bauchi Central) added that the ongoing failures in the power sector persist due to a lack of accountability.
He argued that without sanctions for lapses, the sector’s inefficiencies would remain unaddressed.
He said, “Over the years, nobody has been punished for the lapses of the power sector.
“Reports alone without sanctions will not allow Nigeria to make any headway. The implication is that the problems will continue.”
