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The Oracle: NEPA, PHCN DISCOs: How Nigerians Pay for Darkness (Pt. 2)

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By Mike Ozekhome

INTRODUCTION

In part one, we traced the history and trajectory of ECN, NEPA or PHCN. It has been further broken down into DISCOS. It appears as if the more reforms we bring in, the more moribund it becomes. There is virtually no light. Yet, we pay for darkness. Where you argue or demure, you are immediately disconnected. We have no voice at all.

PRESENT CHALLENGES IN THE POWER SECTOR

The challenges in the power sector are gargantuan. Let us discuss source of them.

GENERATION

Nigeria has an estimated population of 216.1 million people as at June 18, 2022 by UN projection. Nigeria is located on the Gulf of Guinea, with dense rainforest and rare primate habitats. She has 19 dams and is one of the countries with the highest gas reserves which is estimated at 206.53 trillion cubic fact. This was discovered accidently while Nigeria was searching for oil. In the United States, it was reported that natural gas was the largest source about 40% of U.S. electricity generation in the year 2020, while coal constitutes 19% of the source of electricity. Nigeria also holds 379 million tons (MMst) of proven coal reserves as of 2016, ranking 44th in the world.

As at 2016, Nigeria holds 37,070 billion barrels of proven oil reserves, ranking 10th in the world. She also has great potential to develop its solar power energy due to its high amount of sunlight. These are means of generating electricity. Thus, when I stated, at the introduction to this article, that Nigeria’s potential for growth was unquantifiable, I was not mincing words. Nigeria’s installed electricity capacity stands at 18000 megawatts.

GLOBAL ANALYSIS OF ELECTRICITY GENERATION

From the data derived from the official website of the International Trade Administration, Nigeria’s power generation is mostly thermal and hydro with installed capacity of about 12,522 megawatts. Out of this meager capacity of hers, she generates just 5000 megawatts. In the Punch’s report of 21st June, 2018, the Executive Director, Association of Nigerian Electricity Distributors, Mr. Sunday Oduntan, noted that Nigeria must generate at least 180,000 megawatts of electricity to have adequate and stable power supply.  He noted, also, that South Africa, with 60.7 million people, generates 48,000 megawatts and is working to increase the generation to 79,000MW. Electricity production in South Africa is expected to rise to 19300.00 Gigawatt – hour.

In terms of human and natural resources, Nigeria is among the countries lagging behind in terms of power generation capacity. Egypt, for example, with a population of about 106.107 million people, has power generation capacity of 59,53 megawatts. In a magazine published by Egypt today (14th April, 2021), it was reported that Egypt was able to jump 68 ranks in terms of electricity production from the 145th rank to the 77th, and that the success was attributed to public investments directed at upgrade and expansion in the sector. According to USAID (U.S. Agency for International Development), Ghana, with a population of 32.37 million, currently has over 5,300 MW of installed generation capacity. Rwanda, on the other hand, has a population of about 13.6 million. According to USAID, Rwanda currently has only about 218 MW of installed generation capacity. Tunisia, with a population of 12.046 million people, has a current power production capacity of 5,653 megawatts (MW) installed in 25 power plants.

The United Kingdom has a population of 67.44 million (2021). From statistics gotten from the Department for Business, Energy and Industrial Strategy (2021), installed capacity for electricity generation in the UK increased gradually between 1996 and 2018, from 73.6 GW to 101.2 GW. However, in 2019 and 2020, total capacity fell following the closure of several large coal-fired plants, and the mix of plants shifted towards renewable different technologies. Overall, there has been a decline in conventional steam, outweighed initially by an increase in combined cycle gas turbines (CCGT) and more recently by an increase in renewable. CCGT capacity increased almost threefold over the period 1996-2012, from 12.7 GW to 35.5 GW. In 2020, the electricity sector‘s grid supply came from 55% low-carbon power (including 24.8% from wind, 17.2% nuclear power, 4.4% solar, 1.6% hydroelectricity, 6.5% biomass), 36.1% fossil fuelled power (almost all from natural gas), and 8.4% imports. Renewable power is showing strong growth, while fossil fuel generator use in general and coal use in particular is shrinking, with historically dominant coal generators now mainly being run in winter due to pollution and costs, and contributed just 1.6% of the supply in 2020. In 2020, the U.S. net electricity generation stood at approximately four petawatt hours, more than double the generation reported half a century earlier. The North American country is the second largest electricity producer worldwide, ranking only behind China. While its annual electricity output has remained fairly stable in the past decade. America with a population of 332,403,650 currently generates 1,143,757 Megawatts of electricity. This is about 1.14 billion kilowatts. Compare this with Nigeria’s pitiation 5000 megawatts with a staggering population of 216.1 million people.

TRANSMISSION AND DISTRIBUTION

The challenge in the Nigerian power sector is not only seen in the area of generation but also in transmission. There have been serial reports of grid collapse in Nigeria. The Guardian (13th of May, 2021) had reported  another incident of national grid collapse; and noted that the development made it the 29th time in the last three years that the country had experienced grid collapse.  On 23rd August, 2021, Punch reported another case of national grid collapse for the second time in less than a month, worsening the blackout being experienced by households and businesses in parts of Nigeria. According to Nairametrics, data gotten from the year 2020 from the Transmission Company of Nigeria (TCN), from 2013 when the electricity sector privatization was completed to 2020, showed that the grid failed 84 times and partially collapsed 43 times. Nigeria is literally hanging out there in darkness.

EXORBITANT PRICES

The continuous rise in the prices of electricity tariffs and the unaffordable nature of electricity units have been an issue moaned by many Nigerians in their homes and businesses. This is worsened by the fact that the amount of usage by these households and businesses do not seem to adequately equate the prices paid to these power holding companies for the provision of electricity. Most Nigerians cannot afford this with their non-living wage. Businesses are relocating to neighbouring countries on a yearly basis. Nigeria now even imports from companies now domiciled in these neighbouring countries, but which used to be in Nigeria. It is so pitiable.

FACTIONALIZATION OF UNIONS

Workers are forever threatened with downsizing, rightsizing, rationalising and other terms that connote retrenchment of workers. This characterized the privatization regime. The aim of privatization was actually to maximise profits by reducing cost as much as possible through plugging of leakages and retrenchment of workers. The idea of divide and rule thus came in. This negates the idea of gainful employment and the provision of jobs by any responsible government; or at least create a conducive environment for such privatisation created poverty and has impacted negatively the unemployed in the society, while enriching the foreign actors, rather than the Nigerian economy as initially planned.

CORRUPTION AND CAPITALIST EXPLOITATION

The idea behind privatization of electricity in Nigeria was originally largely to de-monopolise the power sector and diversify ownership from the Nigerian Government. This was however not a full diversification, since the government through some companies still maintained shares in the power sector. This has unfortunately given way to many corrupt practices by staff of these power holding organisations. Because the main aim of capitalism is profit, these companies are not affected by the negative effects their companies wreak on the society. They are basically interested in how much profits can be generated by their companies. These is why these companies are continuously increase tariff rates and also reduce the quality of their supply so as to achieve such grotesque profits at the expense of the members of the society who become their victims.

STRIKES AND CONTINUOUS THREATS ON SUBSIDY

The Nigerian government holds some quantum of shares in the power holding companies, these companies are viewed more as public companies, rather than as private companies. This has caused more harm than good to the Nigerian power sector. This has led to increase in strikes and threats of further strikes. The result is that the power holding companies have held Nigerian governments and the Nigerian people in a strangulating. They do not allow for effective growth in the power sector. Constant strikes on grounds of fighting issues of subsidy and subsidy related-matters has also caused a deficit in the power sector and brought it to its knees.

PRIVATIZATION OF THE POWER SECTOR IN NIGERIA

Major issues within the Nigerian power sector, principally concerning power outages and unreliable service, had forced the Nigerian government to take radical steps. It enacted the Electric Power Sector Reform Act, 2005, which called for unbundling the national power utility company into a series of 18 successor companies: six generation companies, 12 distribution companies covering all 36 Nigerian states, and a national power transmission company. The Act stipulated that ownership of these companies be granted to the Bureau of Public Enterprises (BPE), the privatization arm of the federal government; and the Ministry of Finance Incorporated. This unbundling paved the way for an ambitious privatization programme to be carried out by the Bureau of Public Enterprises in Nigeria.  In 2007, the Bureau of Public Enterprises hired CPCS Transcom Limited, an international consulting firm based in Ottawa, Ontario, Canada, give expert advice about the best ways to move forward with the privatization of the country’s then 11 distribution companies and the 6 generation companies. In 2010, CPCS was consulted again to provide advice on the Nigerian government’s privatization program.

Following the privatization process initiated on the 30th of September, 2013, by the Goodluck Jonathan regime, PHCN ceased to exist. In its stead, the Nigerian Electricity Regulatory Commission (NERC) was birthed. This independent regulatory agency, as provided in the Electric Power Sector Reform Act, 2005, was tasked with monitoring and regulating the Nigerian electricity industry, with issuing licences to market participants, and with ensuring compliance with market rules and operating guidelines.

THOUGHT FOR THE WEEK

“We cannot be mere consumers of good governance, we must be participants; we must be co-creators”. (Rohini Nilekani).

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Opinion

The State of Leadership Today: A Look at Global, African and Nigerian Realities

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By Tolulope A. Adegoke PhD

“Leadership for our age is measured not by the height of the throne, but by the depth of its roots in integrity, the breadth of its embrace of collective talent, and the courage to cultivate systems that bear fruit for generations yet unseen” – Tolulope A. Adegoke, PhD.

Leadership today is at a crossroad. Around the world, in our communities, and within our organizations, old ways of leading are straining under new pressures. This isn’t just a theoretical discussion; it’s about the quality of our daily lives, the success of our businesses, and the future of our nations. Let’s walk through the current trends, understand their very real impacts, and then explore practical, hands-on solutions that can unlock a better future for everyone.

Part 1: The Leadership Landscape – Where We Stand

The Global Picture: Beyond the Solo Leader

The image of the all-powerful, decisive leader at the top of a pyramid is fading. Today, effective leadership looks different. It’s more about empathy and service than authority. People expect their leaders—in companies and governments—to be authentic, to listen, and to foster teams where everyone feels safe to contribute. Furthermore, leadership is now tightly linked to purpose and responsibility. It’s no longer just about profits or power; stakeholders demand action on climate, fair treatment of workers, and ethical governance. Leaders must also be tech-savvy guides, helping their people navigate constant digital change while dealing with unpredictable global events that disrupt even the best-laid plans.

Africa’s Dynamic Challenge: Youth and Promise

Africa’s story is one of incredible potential meeting stubborn challenges. The continent is young, energetic, and full of innovative spirit. Yet, this tremendous asset often feels untapped. Too frequently, a gap exists between this rising generation and established leadership structures, leading to frustration. While the African Continental Free Trade Area (AfCFTA) presents a historic chance for economic unity, it requires leaders who think beyond their own borders. At the same time, democratic progress sometimes stalls, with leaders clinging to power. The most pragmatic leaders are those who engage with the vibrant informal economy—the hustlers, market traders, and artisans—who form the backbone of daily life and hold the key to inclusive growth.

Nigeria’s Pressing Reality: Crisis and Resilience

In Nigeria, the leadership experience often feels like moving from one emergency to the next. Attention is consumed by immediate crises—security threats, economic swings, infrastructure breakdowns—making long-term planning difficult. This has triggered a profound loss of confidence, visibly seen in the “Japa” phenomenon, where skilled professionals leave seeking stability and opportunity abroad. This brain drain is a direct critique of the system. Politics remains deeply influenced by ethnic and regional loyalties, which can overshadow competence and national vision. Yet, in the face of these trials, a remarkable spirit of entrepreneurial resilience shines through. Nigeria’s business people and tech innovators are daily solving problems and creating value, often compensating for wider systemic failures.

Part 2: The Real-World Impact – How This Affects Us All

These trends are not abstract; they touch lives, businesses, and countries in tangible ways.

·         On Everyday People: When leadership is perceived as self-serving or ineffective, trust evaporates. People feel anxious about the future and disconnected from their leaders. This can manifest as cynicism, social unrest, or the difficult decision to emigrate. The struggle to find good jobs, feel secure, and build a future becomes harder, deepening inequalities.

·         On Companies and Organizations: Businesses operate in a tough space. They face a war for talent, competing to retain skilled employees who have global options. They must also navigate unpredictable policies, provide their own power and security, and balance profitability with rising demands for social responsibility. The burden of operating in a challenging environment increases costs and risk.

·         On Nations: Countries plagued by poor governance face a competitiveness crisis. They struggle to attract the kind of long-term investment that builds economies. Policy becomes unstable, changing with political winds, which scares off investors and stalls development. Ultimately, this can destabilize not just one nation but entire regions, as problems like insecurity and migration spill across borders.

Part 3: A Practical Pathway Forward – Building Leadership That Delivers

The situation is complex, but it is not hopeless. Turning things around requires deliberate, concrete actions focused on systems, not just individuals.

1. Fortify Institutions with Transparency and Merit.

We must build systems so strong that they work regardless of who is in charge.

·         Action: Legally protect key institutions—the electoral body, the civil service, the courts—from political interference. Appointments must be based on proven competence and integrity, not connections.

·         Action: Implement technology-driven transparency. Let citizens track government budgets and projects in real time through public online portals. Sunshine is the best disinfectant.

2. Bridge the Gap Between Leaders and the Led.

Leadership must become a conversation, not a monologue.

·         Action: Create mandatory Youth Advisory Councils at all levels of government and in large corporations. Give young people a formal platform to contribute ideas and hold leaders accountable on issues like education, digital innovation, and job creation.

·         Action: Leaders must adopt regular, unscripted “town hall” meetings and use simple digital platforms to explain decisions and gather feedback directly from citizens and employees.

3. Channel Entrepreneurship into National Solutions.

Harness the proven problem-solving power of the private sector.

·         Action: Establish Public-Private Impact Partnerships. For example, the government can partner with tech companies to roll out digital identity systems or with agribusinesses to build modern farm-to-market logistics. Clear rules and shared goals are key.

·         Action: Launch National Challenge Funds that invite entrepreneurs and researchers to compete to solve specific national problems, like local clean energy solutions or affordable healthcare diagnostics, with funding and market access as the prize.

4. Redeploy Nigeria’s Greatest Export: Its Diaspora.

Turn the brain drain into a brain gain.

·         Action: Create a Diaspora Knowledge & Investment Bureau. This agency would actively connect Nigerians abroad with opportunities to mentor, invest in startups, or take up short-term expert roles in Nigerian institutions, transferring vital skills and capital.

·         Action: Offer tangible incentives, like tax breaks or matching funds, for diaspora-led investments in critical sectors like healthcare, renewable energy, and vocational training.

5. Cultivate a New Mindset in Every Citizen.

Ultimately, the culture of leadership starts with us.

·         Action: Integrate ethics, civic responsibility, and critical thinking into the core curriculum of every school. Leadership development begins in the classroom.

·         Action: Celebrate and reward “Local Champions”—the honest councilor, the community organizer, the business owner who trains apprentices. We must honor integrity and service in our everyday circles to reshape our collective expectations.

Conclusion: The Work of Building Together

The challenge before us is not to find a single heroic leader. It is to participate in building a better system of leadership. This means championing institutions that work, demanding transparency in our spaces, mentoring someone younger, and holding ourselves to high ethical standards in our own roles.

For Nigeria and Africa, the possibility of a brighter future is not a dream; it is a choice. It is the choice to move from complaining about leaders to building leadership. It is the choice to value competence over connection, to seek common ground over division, and to invest in the long-term health of our community. This work is hard and requires patience, but by taking these practical steps—starting today and in our own spheres—we lay the foundation for a tomorrow defined by promise, stability, and shared success. The power to deliver that possibility lies not in one person’s hands, but in our collective will to act.

Dr. Tolulope A. Adegoke, AMBP-UN is a globally recognized scholar-practitioner and thought leader at the nexus of security, governance, and strategic leadership. His mission is dedicated to advancing ethical governance, strategic human capital development, and resilient nation-building, and global peace. He can be reached via: tolulopeadegoke01@gmail.comglobalstageimpacts@gmail.com

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Opinion

Globacom Redefines Standard for Telecoms in 2026

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By Michael Abimboye

As always, Globacom is at the heart of telecoms transformation in Nigeria. The acquisition of additional spectrum, is a decisive move that has expanded network capacity and fundamentally improved customer experience.

With the ability to carry significantly higher data volumes at greater speeds, users are seeing faster downloads, stronger uploads, seamless video streaming, and clearer voice calls even at peak periods. Crucially, this expansion has driven down latency. Independent performance testing has ranked Glo as the network with the lowest latency in Nigeria, meaning faster response times whenever data commands are initiated.

This spectrum advantage is being matched on the ground by the rollout of thousands of new LTE sites nationwide. Network capacity has increased pan-Nigeria, with noticeably higher download speeds across regions. At the same time, the installation of thousands of additional towers is easing congestion and closing coverage gaps, particularly in high-density locations such as markets and tertiary institutions, where demand for fast, reliable internet is highest.

Power reliability, often the silent determinant of network quality, is also being reengineered. Globacom has deployed hybrid battery power systems across numerous sites, reducing dependence on diesel while improving sustainability. Beyond cost efficiency, this greener model delivers stronger uptime ensuring uninterrupted power supply and optimal performance for base stations and switching centres.

Behind the scenes, Glo has upgraded its switching systems and data centres to accommodate rising traffic volumes nationwide. These upgrades are designed not only for today’s demand but to ensure the network consistently meets performance KPIs well into the future, even as data consumption continues to grow.

Equally significant is the massive reconstruction and expansion of Globacom’s optic fibre cable (OFC) network. Along highways and metro routes affected by road construction, fibre routes are being reconstructed and relocated to safeguard service continuity. Thousands of kilometres of new fibre have also been rolled out nationwide, fortifying the OFC backbone, improving redundancy, reducing network glitches, and enabling the network to handle increasingly heavy data loads with resilience.

These investments collectively address long-standing coverage gaps while driving densification and capacity enhancement in already active areas, ensuring a more balanced and reliable national footprint.

At the core layer, Globacom is modernising its network elements through new platforms and applications, upgraded enterprise and interconnect billing systems, and an expanding roster of roaming partners for both in-roaming and out-roaming services strengthening its integration into the global telecoms ecosystem.

Taken together, these are not incremental upgrades. They represent a deliberate, system-wide repositioning.

In 2026, Globacom is not just improving its network; it is asserting itself as the technical leader in Nigeria’s telecommunications industry and has gone on a spending spree to satisfy the millions of subscribers enjoying seamless connectivity across Nigeria.

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Opinion

How GLO Sustains Everyday Businesses in Kano, Nigeria’s Centre of Commerce

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By Dr Sani Sa’idu Baba

For more than two weeks, Kano woke up under a veil of fog. Not the poetic kind, but the stubborn Harmattan fog that dulls vision, slows movement, and disrupts daily rhythm. Dawn arrived quietly. Shops opened late. Calls failed repeatedly. Internet bars blinked on and off like uncertain promises. Across the state, one reality became impossible to ignore: communication had become a struggle. This reality carried even greater weight in the capital of Kano, the centre of commerce in Nigeria.

As Ramadan approaches and gradually leads to the celebration of Eid-el-Fitr, everyone understands what this season represents. It is a period when online businesses, both big and small, become a major source of livelihood for millions. Traders prepare for peak demand, online vendors scale up advertising, and buyers from across the country look to Kano for goods. Visitors stream in from other states, transactions multiply, and the success of this entire commercial ecosystem depends heavily on one thing: seamless network connectivity between buyers and sellers.
In Kano, where business breathes through phone calls, alerts, and instant messages, poor network is not just inconvenient, it is costly. Calling became difficult. Browsing the internet felt like a battle. For many, it meant frustration. For others, it meant loss.

As these challenges persisted day after day, conversations across the city began to take a clear and consistent direction. In homes, offices, and markets, a new conversation began to dominate discussions. A brother of mine, deeply involved in the communication business at Farm Center Market, the largest hub for telecom activity in Kano shared his amazement. Day after day, customers walked up to data vendors with one clear, confident request: “Glo data.” Not alternatives. Not experiments. Just Glo, he said. At first, it seemed puzzling. If you were already on Glo, you might not even notice the difference. But for those struggling on other networks, the contrast was undeniable. In the middle of foggy mornings and unstable signals, Glo stood firm.

And soon, the conversation spread everywhere. At tea junctions in the early hours, as people warmed their hands around cups of shayi, discussions circled around how Glo “held up” when others disappeared. In university classrooms, students whispered comparisons before lectures began, who could download materials, who could submit assignments, and which network actually worked. More strikingly, Glo users quietly turned their phones into lifelines, sharing hotspots with classmates so others could access lecture notes, submit assignments, and stay connected. At sports viewing centres, between goals and missed chances, fans debated networks with the same passion as football rivalries. In markets, traders told customers how Glo saved their day. In every gathering of people across Kano, Glo became the reference point. The reason was simple: Glo had saved businesses.

Consider the POS operator by the roadside. Every successful transaction that attracts him/her ₦100 here, ₦200 there is survival. Failed transfers mean angry customers and lost income. During these fog-heavy days, many operators would have been stranded. But where Glo bars stayed strong, withdrawals went through, alerts dropped, and trust preserved.

Picture a roadside trader making her first sale of the day through a simple WhatsApp call, her voice steady as she confirms an order that will set the tone for her business. Nearby, an online vendor advertises products in WhatsApp groups, responds to messages, takes calls from interested buyers, and confirms deliveries, all in real time. Behind every one of these small but significant transactions is reliable connectivity. Delivery riders weaving through traffic and racing against time also depend on uninterrupted network access to reach customers, confirm payments, and complete orders. In moments when other networks struggled, Glo quietly kept these wheels of commerce turning, ensuring that daily hustle did not grind to a halt. Beyond the busy streets of the city, the impact of this reliability becomes even more profound in remote villages in Kano.

Back in Kano city, rising transportation costs have reshaped the way people work. Many professionals have had no choice but to adapt, turning their homes into offices and relying heavily on the internet to stay productive. Many now attend virtual meetings, send large files, collaborate remotely, and meet deadlines without leaving their homes. In a period marked by economic pressure and uncertainty, dependable internet is no longer a convenience, it is a necessity. In these conditions, Glo continues to provide the stability that keeps work moving forward.

At this point, Glo stops being seen merely as a telecommunications company. It emerges as the invisible backbone of the Nigerian hustle, supporting the determination and resilience of everyday people. From POS operators and online merchants to students, delivery services, market traders, and remote workers who refuse to give up, Glo remains present in the background, quietly powering their efforts. In tough terrains, harsh weather, and challenging times, when other networks fluctuate or fade, Glo stays connected.

You may not always hear it announce itself loudly, and you may not notice it when everything is working smoothly. But when a single call saves a business, when one alert prevents a financial loss, and when one stable connection keeps a dream alive, Glo proves its value, not as noise or empty promises, but as consistent reliability and lived experience. And that is how quietly, consistently, and powerfully Glo continues to power Nigeria’s everyday businesses, sustaining dreams and survival UNLIMITEDLY…

Dr. Baba writes from Kano, and can reached via drssbaba@yahoo.com

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