Two Decades of Power Reforms, Yet Nigerians Remain in Darkness as Households, Businesses Count Their Losses

Since the return to democratic governance in 1999, successive Nigerian administrations have introduced reforms, policies and interventions aimed at addressing the country’s persistent electricity challenges. Yet, more than two decades later, reliable power supply remains elusive, with households and businesses continuing to count their losses. The latest manifestation of this enduring challenge is evident in the last two weeks, as selected states across the country, including Lagos, Abuja, Ogun, Kwara and Oyo, have experienced varying degrees of power outages, characterised by outright blackouts and electricity supply for as little as less than one hour a day. In the midst of a heat wave projected to claim about 31,000 additional lives and a population grappling with the rising cost of living, Chiemelie Ezeobi and Esther Oluku write on the economic cost of power outages on businesses and families When Joseph Olasunkanmi Tegbe appeared before the Senate for screening on May 6, 2026 as the minister designated for the Ministry of Power, he initially outlined a 100-day plan aimed at stabilising Nigeria’s national electricity grid and addressing the recurring power challenges in the country. He identified grid stability as a priority, alongside improving electricity metering, enforcing operational discipline across the power sector and strengthening the country’s electricity reserves. As a minister-designate then, he also promised visible improvements in electricity supply, assuring lawmakers that his administration would work towards delivering measurable results within the first 100 days. However, following concerns over the interpretation of his commitment, his spokesperson clarified on May 8, 2026, that Tegbe had not promised to completely fix the national grid within three months, rather, the 100-day target was focused on commencing interventions to stabilise the grid, while broader structural reforms could take up to one year. Six months after taking office, the recurring outages across several states have again brought the question of grid stability and the delivery of the minister’s initial commitments into focus because sadly, that same electricity has eluded Nigerians across five states of the country in the last two weeks and more. Data released by the National Institute for Legislative and Democratic Studies (NILDS), in March 2026, reported that Nigeria’s national grid had experienced 564 partial and total collapses between 2000 and 2022, with failures continuing in subsequent years. Two Decades of Reforms, Yet Nigeria Remains in Darkness Nigeria’s struggle with unreliable electricity supply is not a recent development. Since the return to democratic governance in 1999, successive administrations have introduced policies, reforms and interventions aimed at addressing the country’s persistent power challenges. Yet, more than two decades later, reliable electricity remains elusive for millions of households and businesses. When civilian rule returned in 1999, the electricity sector was already in a poor state, with ageing infrastructure, inadequate investment and declining generation capacity. The administration of former President Olusegun Obasanjo introduced the National Electric Power Policy in 2001, setting the foundation for reforms intended to restructure the sector and attract private investment. This was followed by the Electric Power Sector Reform Act of 2005, which provided the legal framework for unbundling the then National Electric Power Authority (NEPA) and establishing the Nigerian Electricity Regulatory Commission (NERC). Under former President Goodluck Jonathan, the privatisation of the electricity sector was completed in 2013, with the transfer of generation and distribution companies to private investors. The expectation was that private-sector participation would attract investment, improve efficiency and deliver more reliable electricity. However, persistent generation shortages, inadequate transmission infrastructure and distribution challenges continued to undermine the expected improvements. The administration of former President Muhammadu Buhari also pursued interventions to improve generation and transmission capacity, but frequent grid collapses and electricity shortages remained a major concern. Under President Bola Tinubu, the Electricity Act 2023 introduced another major policy shift by allowing states to participate more directly in electricity generation, transmission and distribution, opening the door to decentralised electricity markets. Despite these successive reforms, investments and policy changes, the gap between electricity demand and available supply remains significant. Ageing infrastructure, inadequate gas supply, transmission constraints, vandalism and liquidity challenges continue to affect the sector. Businesses Speak on Economic Implications of Power Outage For micro, small and medium-scale enterprises, which make up more than 60 per cent of Nigeria’s working population, the power outage has resulted in losses running into hundreds of thousands of naira, low patronage resulting in debts, and low turnover. For Mrs. Ese Oshareode, a frozen foods vendor at Alakoto Market in Ajeromi-Ifelodun Local Government Area of Lagos State, the power outage has resulted to huge losses. “This light situation is affecting us badly. Our goods get spoilt and we have no choice but to dispose of them. Some of the goods that didn’t spoil so badly were sold to buyers, while the ones which could not be redeemed were disposed of. The situation had also made us buy goods in very small portions,” she said. On his part, Mr. Stanley Igwe, a drinks and provisions store owner, revealed that the power situation had caused a drastic reduction in the sale of sachet water and drinks. According to him, people who would naturally patronise him to buy cold water and drinks would not come because his drinks were not cold. “The light situation in Nigeria is terrible and to imagine that the President himself uses solar and does not know how ordinary Nigerians live.” Another frozen foods vendor who spoke to THISDAY, Mrs. Blessing Omozer, stated that she lost goods worth in excess of N300,000 as a result of the power outage. “This power outage has been a very bad season for us businesswomen, especially the frozen food vendors. Up to four cartons of my fish got spoilt. One carton is N75,000. If you calculate it, it’s more than 300,000. I’m struggling to regain myself as a result of the loss,” she said. For businesses in the manufacturing space, the power outage has shifted production deadlines and would have an effect on end-of-year production and sales. Chief Executive Officer of XTA Leathers, Esther Okewole, noted that she had not been able to do any meaningful work in the last two weeks. “The electricity situation is terrible. I have not been able to do any meaningful work for two weeks now. It is dragging the fulfilment of customers’ orders backwards. My production for ember sales is pending because there is no light,” she said. Effect of Power Outage on Families Families who spoke to THISDAY said that the power outage had caused both financial losses and physical stress to them and their households. Mr. Victor Israel, a father of three, explained that the intense heat of the season and the lack of power to run his cooling system had made it difficult to regain lost energy after a stressful workday. Mrs. Clara Okafor, a housewife, said that she had had to dispose of a fresh pot of soup which could not last until morning because of the heat. Speaking on how her family copes with the situation, she said: “My husband sleeps outside until morning because of the heat. My children and I sleep without clothes. I no longer put my soup inside the fridge. When I cook, I have to keep warming it to ensure it remains good for consumption. “One night, I was optimistic they’d give us electricity. I had cooked and put the soup inside the fridge. The following day, the soup had swollen. I had spent up to 15,000 naira to cook that soup. Everything was gone. I threw it away,” she said. A widow and mother of four children, Ms. Latifat, said that it had become hard to cook. “If you cook soup now, put it in the freezer, everything will spoil because of the light issue.” What Exactly is the Ministry of Power Doing? The epileptic power supply has of course elicited the question what the ministry in charge of power is actually doing. On November 6, 2026, the minister blamed the drop in electricity supply on the commencement of planned maintenance at Egbin Power Station and constraints in gas supply to some thermal power stations, which had reduced the amount of electricity available on the national grid. This, he said, had necessitated the grid operators implementing load shedding in some areas to manage the shortfall. He added that the sabotage of key transmission lines had also restricted the use of alternative routes to supply some locations, especially Lagos. In another statement on November 7, 2026, he shared that 98 of over 300 containers carrying power supply equipment, which had been ‘stranded’ at the port for nearly 20 years, had been approved for release. He noted that as soon as the ministry take delivery of the equipment, it would be tested and deployed to boost electricity supply by expanding power networks, relieving overloaded substations and bringing more reliable electricity to Nigerians. Tegbe further assured Nigerians that the ministry was working to return the affected generating units to service in phases, with the first units coming back online within the next 48 to 72 hours from November 8, 2026. He added that the ministry was also working with operators to improve gas supply and accelerate repairs to the damaged infrastructure. Even with the assurances, the reality is totally different for Nigerians who have been left to grapple with the cost of the epileptic power supply across board and the effects on their daily lives.