# Nigeria's electricity crisis: 13 years of privatisation failure > Nigeria's power sector privatisation 13 years ago still leaves millions without reliable electricity. - Title: Nigeria's electricity crisis: 13 years of privatisation… - Summary: Nigeria's power sector privatisation 13 years ago still leaves millions without reliable electricity. - Keywords: nigeria, electricity, privatisation, power sector, diesel generators, grid collapse, energy costs, manufacturers association of nigeria, band a grid, electricity generation, Premium Times Nigeria - Source: Premium Times Nigeria — https://premiumtimesng.com/opinion/923819-thirteen-years-after-privatisation-nigeria-is-still-paying-for-darkness-by-posi-olatubosun.html - Author: Premium Times - Published: 2026-11-09T05:31:11+00:00 - Read time: 2 min - Topics: nigeria, electricity, privatisation, power sector, diesel generators, grid collapse, energy costs, manufacturers association of nigeria, band a grid, electricity generation, news, politics ## Privatisation promises Thirteen years after privatisation, Nigeria's power sector still struggles with unreliable electricity supply. > On 1 November 2013, the Federal Government handed the generation and distribution companies to private owners amid promises of stable supply, private investment and an end to the generator economy ## Current electricity crisis Installed capacity exceeds 13,000 megawatts but available generation hovers between 4,000 and 5,000 megawatts. > The national grid collapsed twice in five days in January 2026 alone and suffered further disruptions in the months that followed ## Economic impact Manufacturers spent over ₦1.5 trillion on alternative energy in 2025, with small businesses facing greater challenges. > Businessday reports that rising energy bills have imposed a fourfold cost shock on the country's largest firms ## Pricing failures Diesel electricity costs ₦950 per kilowatt-hour while petrol costs ₦750, compared with ₦209 for Band A grid customers. > When the grid fails, nigerians pay three to four times more for energy ## Debt crisis Generation companies owe approximately ₦7.66 trillion by June 2026, with debt expected to exceed ₦17 trillion by 2033. > The debt owed to them had reached approximately nigerian 7.66 trillion by june 2026 ## Market failures Distribution companies collect only about three-fifths of the value of electricity they receive, with millions unmetered. > Millions of customers remain unmetered and are billed by estimate ## Four key failures Privatisation implementation failed due to undercapitalised assets, unpaid bills, political pricing, and weak enforcement. > The first was the sale itself. Investors acquired assets that were, in many cases, undercapitalised and heavily leveraged ## Solutions proposed Government must audit companies, resolve debt through funded plans, complete metering, and allow states to regulate electricity markets. > States can now regulate their own electricity markets. Those that create credible frameworks for embedded generation, mini-grids and solar can attract investment far faster ## Long-term consequences Nigeria's economy remains dependent on generators, with no credible growth targets without reliable electricity. > Fixing the electricity sector is not just one priority among many; it is a precondition for all others ## Current state of grid The national grid has collapsed more than 120 times in eleven years, with generation capacity declining by 15% in five years. > Generation capacity has declined by approximately 15 per cent in five years ## Financial impact Public funds spent on the sector since privatisation range from ₦7 trillion to ₦10 trillion, with debts reaching ₦7.66 trillion. > Estimates of public funds spent on the sector since privatisation range from nigerian 7 trillion to nigerian 10 trillion ## Customer impact Millions of households still billed based on estimates rather than meter readings, with manufacturers spending ₦1.5 trillion on alternatives. > Millions of households are still billed based on estimates rather than meter readings ## Systemic failure The electricity sector has failed to deliver reliable power for 13 years, with no credible path to economic growth. > The scorecard is unforgiving across every dimension ## Recommendations Government must audit companies, resolve debt through funded plans, complete metering, and allow states to regulate electricity markets. > States can now regulate their own electricity markets. Those that create credible frameworks for embedded generation, mini-grids and solar can attract investment far faster ## Future outlook Without reliable electricity, Nigeria cannot achieve economic growth targets or build a $1 trillion economy. > Fixing the electricity sector is not just one priority among many; it is a precondition for all others ## Key takeaway Nigeria's electricity privatisation has failed to deliver stable power after 13 years, with generators still running on diesel and grid collapses costing businesses ₦1.5 trillion annually.