Atiku Abubakar’s bold call for restructuring Nigeria’s electricity sector comes as the Southeast, Northwest, and Northeast face prolonged blackouts. October 26, 2024.
Nigeria’s power crisis is spiralling out of control, thrusting millions of citizens across the Southeast, Northwest, and Northeast regions into prolonged darkness. Over the past three weeks, these regions have endured a blackout so severe it has crippled local economies, disrupted healthcare services, and paralysed daily life. At a time when the Federal Government’s silence is deafening, former Vice President Atiku Abubakar has spoken out, laying out a comprehensive plan that he argues will lead Nigeria out of this perennial energy abyss.
His proposed reforms, encapsulated in his policy document, My Covenant with Nigerians, call for removing the entire electricity value chain from the exclusive legislative list, thus empowering states to generate, transmit, and distribute electricity independently of federal oversight. Abubakar’s vision aims to foster a diversified energy mix by tapping into both renewable and non-renewable resources. The plan also advocates for private sector engagement to develop green-field mini-grid systems, which could be connected to the national super-grid in the future.
But is this solution viable in a country marred by political red tape, systemic corruption, and an energy infrastructure on the brink of collapse? And can his proposals address the fundamental issues that have plagued Nigeria’s power sector for decades? This report dives deep into the political and economic stakes of Abubakar’s proposal, examining the transformative potential and challenges of this ambitious energy reform.
The Scale of Nigeria’s Power Crisis: A Nation in the Dark
For years, Nigeria’s power sector has struggled to meet the basic energy needs of its citizens. According to data from the World Bank, only 55% of Nigeria’s population has access to electricity, and even those with access face constant outages and unreliable service. The most recent blackout has further exacerbated this crisis, with Southeast and Northern states experiencing complete power outages over the past three weeks.
In these affected regions, businesses have ground to a halt, hospitals are overwhelmed, and households are struggling to maintain even basic necessities. Many have turned to expensive, pollution-heavy generators, pushing already struggling families deeper into financial hardship. A blackout of this magnitude has cast a stark light on the country’s failing infrastructure, with a growing sense of frustration and despair among citizens who feel abandoned by the government.
For Atiku Abubakar, this crisis represents both a tragedy and an opportunity—a chance to push for long-overdue structural reforms that could end Nigeria’s dependence on federal-controlled energy monopolies. His statement calling for swift intervention from government departments has highlighted the severity of the crisis, while his proposed solution aims to transform a system that has largely failed the Nigerian people.
Decentralising Power Generation: Breaking Free from the Exclusive List
One of the key issues identified in Abubakar’s proposal is the centralisation of the energy sector under the exclusive legislative list. This structure means that only the Federal Government has the authority to regulate electricity generation, transmission, and distribution, effectively stifling states’ abilities to develop and manage their own power resources. For years, analysts and industry experts have argued that this model has hindered Nigeria’s power sector by fostering inefficiency, corruption, and an over-reliance on outdated infrastructure.
Abubakar’s call to remove electricity from the exclusive list is revolutionary in its intent, proposing that states be granted autonomy over their energy resources. This decentralisation would allow each state to harness local energy sources and create a tailored power infrastructure that reflects regional needs and opportunities. For instance, states in the North, rich in solar potential, could prioritise solar energy initiatives, while coastal regions might explore wind power.
Decentralisation could also reduce the vulnerability of Nigeria’s energy sector to national-level crises. Abubakar argues that an industrial dispute or other federal-level issue should not disrupt state-level industrial activities—a sentiment echoed by business leaders who have long decried the federal government’s grip on energy policy. By devolving power, the federal government could shift its focus from micromanagement to providing oversight, ensuring regulatory standards, and facilitating the sharing of best practices.
“My Covenant with Nigerians”: A Bold Roadmap for Energy Reform or Political Rhetoric?
Abubakar’s policy document, My Covenant with Nigerians, presents a multi-faceted approach to addressing Nigeria’s energy crisis, encompassing both infrastructure investment and policy reform. His plan emphasizes the need for a viable energy mix, combining renewable sources (hydro, solar, wind, and biofuels) with non-renewable sources (coal and gas) to create a stable and diversified power system.
While the proposal has garnered significant public interest, critics question whether this document represents a realistic pathway to reform or merely another instance of political grandstanding. They point to the high costs of developing new energy infrastructure, particularly mini-grids and renewable energy projects, and wonder whether these ideas can be effectively implemented in a country burdened by budget constraints and an unstable political environment.
However, supporters argue that Abubakar’s plan is precisely what Nigeria needs to break free from a cycle of ineffective federal oversight and insufficient investment. By empowering states, his proposal would open doors for local governments to attract private investors, secure regional funding, and collaborate with development agencies. Abubakar’s plan has the potential to reinvigorate Nigeria’s energy sector and drive sustainable development—if political leaders can set aside partisan interests and commit to meaningful change.
Private Investment in Mini-Grids: A Game-Changer for Rural Communities?
A standout component of Abubakar’s policy document is the call to encourage private investment in mini-grid transmission systems. Mini-grids, which operate independently of the national grid, offer a flexible and scalable solution for rural communities and remote areas that have been historically underserved by the centralized power system. In many ways, these systems represent a microcosm of Abubakar’s broader energy vision: localized, diversified, and resilient.
Mini-grids could provide much-needed electricity to Nigeria’s rural population, who often rely on expensive, unsustainable alternatives like diesel generators. By looping these mini-grids into a future super-grid, Abubakar envisions a networked, decentralized power system that could provide a buffer against nationwide blackouts and disruptions.
However, bringing private investors into Nigeria’s energy market presents its own set of challenges. Many investors are wary of Nigeria’s regulatory environment, which is marked by opaque policies, bureaucratic delays, and a history of government interventions. To attract private capital, Nigeria would need to establish a stable, transparent regulatory framework that protects investors while ensuring that energy remains affordable for consumers. Without such safeguards, there is a risk that private entities could exploit the energy market, driving up costs and limiting access for low-income households.
The Role of Renewable Energy: Harnessing Nigeria’s Natural Resources
Nigeria’s natural resources offer immense potential for renewable energy, and Abubakar’s plan rightly recognizes the importance of harnessing these resources to create a sustainable energy future. His emphasis on a mix of renewable energy sources reflects an understanding of the diverse opportunities within Nigeria’s regions.
In the North, abundant sunshine makes solar energy a natural fit, while the South’s rivers and waterways could support hydroelectric power. Wind and biofuels also represent promising areas for development, particularly in regions with agricultural and coastal assets. By tapping into these resources, Nigeria could significantly reduce its reliance on fossil fuels, reduce emissions, and align with global trends toward renewable energy.
However, building renewable energy infrastructure requires significant investment and expertise—two factors that have historically been lacking in Nigeria’s energy sector. Critics argue that while Abubakar’s renewable vision is commendable, the federal government’s track record of mismanagement and inefficiency raises concerns about the feasibility of implementing such projects. Without stringent oversight, there is a risk that funds intended for renewable energy could be diverted or squandered, undermining the very goals of the reform.
Structural and Political Barriers to Reform: A Long Road Ahead
Transforming Nigeria’s power sector would not only require an overhaul of existing policies but also necessitate confronting deeply entrenched political and structural obstacles. The call to remove energy from the exclusive list, for instance, is likely to face strong resistance from vested interests within the federal government who benefit from maintaining centralized control over the sector. Moreover, the logistics of shifting energy regulation to the state level would be complex, requiring legal amendments, capacity building, and extensive planning.
Abubakar’s plan would require cooperation from both the public and private sectors, as well as significant legislative support to enact the necessary reforms. Nigeria’s history of political gridlock and factionalism could prove a formidable barrier to progress, especially if energy reform becomes a battleground for competing interests. Without a cohesive strategy and strong leadership, the risk remains that this proposal could become mired in bureaucracy, just as past reform efforts have.
Conclusion: Can Nigeria Truly Break Free from Its Energy Crisis?
Atiku Abubakar’s statement is a clarion call for immediate and comprehensive action to address Nigeria’s energy crisis. His proposal to decentralize power generation, attract private investment, and harness renewable energy resources has the potential to revolutionize Nigeria’s power sector. By removing the energy value chain from the exclusive list, Abubakar envisions a Nigeria where states are empowered to manage their own electricity needs, transforming the country’s approach to energy from a top-down, centralized model to one that prioritizes regional needs and opportunities.
However, translating this vision into reality will require more than words. Nigeria’s power crisis is a multi-layered issue, rooted in decades of mismanagement, corruption, and policy failures. To succeed, Abubakar’s plan would need not only legislative support but also a committed coalition of stakeholders willing to prioritize the long-term welfare of the Nigerian people over short-term political gains.
As Nigeria remains gripped by darkness, Abubakar’s message offers a beacon of hope—but whether this vision can overcome the entrenched obstacles within Nigeria’s political landscape remains to be seen.