Concerns Over Secrecy in Nigeria’s Power Sector
Kunle Olubiyo, the Chairman of the Consumer Protection Network of Nigeria, has raised alarm over the pervasive secrecy and lack of data transparency within the country’s power sector. He believes that these issues are not only enabling inefficiencies but also worsening the ongoing power crisis.
Call for Real-Time Access to Electricity Market Data
In a recent interview, Olubiyo emphasized that crucial market data, particularly concerning electricity bills, should not be regarded as confidential. He argued for immediate and open access to this information, stating, “Data on electricity market bills should be available quickly and seamlessly.” He pointed out that essential public documents like these should be accessible in real time to enhance transparency.
Lack of Data Centralization and Accountability
Expressing frustration at the current state of affairs, Olubiyo noted that insufficient data centralization hampers accountability and operational efficiency. Critical information seems to be treated like secret society material, thus obstructing necessary reforms in the sector.
Technological Gaps Hindering Efficiency
Olubiyo identified significant technological deficiencies in Nigeria’s power sector, specifically mentioning the lack of critical infrastructure for data generation and collection. He underscored that operational inefficiencies are worsened by the neglect of modern technology. He specifically called out outdated systems such as smart grid meters and supervisory control and data acquisition (SCADA) as major contributors to inefficiencies.
Outdated Infrastructure Contributing to Market Manipulation
The prevalence of poorly installed and antiquated meters at grid interface points has created opportunities for manipulation, according to Olubiyo. He warned that the continuous operation with obsolete infrastructure would result in systemic abuses and ephemeral customer turnover among consumers, government, and other stakeholders.
Trust Erosion Due to Structural Deficiencies
Olubiyo went further to describe the alarming trend of a “systemic conspiracy” within the electricity market, which he believes ultimately erodes trust and undermines service delivery. He used a vivid metaphor, likening the situation in the sector to “overpriced but rotten dried fish,” indicating that despite substantial investments, the system is still fundamentally flawed and in dire need of professional intervention.
Ongoing Tensions Between Government and Power Producers
These comments arrive amidst rising tensions in the electricity market, particularly surrounding disagreements between the federal government and power producers regarding sector debt adjustments. Recently, Power Minister Adebayo Adelabu indicated that the government’s outstanding debt to Generating Companies (GenCos) might be lower than previously estimated. He mentioned that continued settlement efforts could potentially decrease the reported 6.3 trillion naira debt to around 4 trillion naira.
Divergent Views on Debt Settlement
However, the GenCos have disputed the government’s claims, asserting that any settlement should involve all stakeholders. Joy Ogazi, Secretary General of the Power Generation Companies Association, pointed out that the last joint settlement meeting occurred in March 2025 and queried the basis of the government’s revised figures. Ogazi insisted that a thorough and transparent verification process is necessary to ascertain the exact amount owed, citing various cost components, including outstanding invoices and foreign exchange differences.
