See FG reasons for frequent national grid collapse, takes action

2 weeks ago 3

The federal government of Nigeria has provided an explanation for the frequent national grid collapses
In 2024 alone, the grid has collapsed 10 times, with the two most recent incidents occurring just 48 hours apart
Nigeria currently supplies electricity to other African countries, including Togo, Benin Republic, and Ghana

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The federal government has blamed the limited infrastructure of electricity distribution companies (DisCos) as a key factor behind Nigeria's recurrent national grid failures.

This was disclosed by the National Orientation Agency (NOA) in a statement made available to journalists.

In the statement titled "Why national grid collapses", NOA explained that although the country has the potential to generate and transmit significantly more electricity, the DisCos’ restricted capacity to distribute power results in grid instability and periodic national blackouts.

The country can generate about 13,000 MW of electricity as well as transmit about 8,000 but given DisCos’ limited infrastructure, this will also result in system failure.

The agency said that last month, the DisCos rejected about 1,400 MW of electricity of the 5,313MW that the generation companies generated, Punch reports.

Part of the statement reads:

"Nigeria can generate up to 13,610 megawatts (MW) of power and has a transmission capacity of about 8,100 MW."However, DisCos’ distribution infrastructure remains limited to approximately 4,000 MW, causing repeated system failures. "In early September, the country reached a peak generation level of 5,313 MW, but nearly 1,400 MW was reportedly rejected by the DisCos due to technical constraints within their networks."

The NOA statement also emphasised the impact of these capacity issues on grid stability.

“Just last month, on September 2nd, a peak generation in three years was achieved, but the DisCos rejected almost 1,400 MW due to their systems’ fragility, adding that such rejections contribute to grid collapses."

Why DisCos are struggling

Speaking further, the NOA highlighted that cost recovery is a primary challenge for the DisCos, inhibiting their ability to invest in necessary upgrades.

It noted that electricity companies face financial pressures that discourage infrastructure investments required for a stable system, impacting their capacity to distribute more power to consumers effectively.

The statement added:

“Cost recovery is the major challenge of DisCos, which has hampered them from upgrading their distribution substations and facilities."In response, the government has introduced measures to enhance the sector’s financial sustainability, including a recent increase in tariffs for Band A customers, which is aimed at improving revenue and encouraging private investment."

FG takes action

The NOA also pointed to ongoing government efforts under President Bola Tinubu’s administration to address these longstanding issues.

This includes facility upgrades supported by the Siemens project, which has increased the Transmission Company of Nigeria’s (TCN) capacity to wheel out up to 6,000 MW of power, with additional projects underway.

"With the recent completion of the 700 MW Zungeru hydroelectric plant, Nigeria's national grid now has an installed generation capacity of 13,610 MW."

National Grid collapses again

Legit.ng earlier reported for the 10th time in 2024 and the 2nd time in days the national grid has collapsed, plunging several parts of the country into darkness

Electricity companies announced the collapse in messages posted to their social media accounts for customers.

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Source: Legit.ng

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