Power sector gains require reforms beyond tariff adjustments- Expert

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By Yunus Yusuf

A power expert, Dr Olukayode Akinrolabu, says early improvements in grid stability in 2025 present an opportunity for Nigeria to fix long-standing power sector challenges.

He said this in an interview with the News Agency of Nigeria (NAN) on the performance of the power sector in 202S in Lagos on Saturday.

Akinrolabu, who chairs the Customer Consultative Forum for Festac and Satellite Town, however, said this could be achieved if recent tariff reforms are backed by smarter implementation and operational discipline.

He said the renewed stability should be leveraged to strengthen revenue across the electricity value chain and restore confidence among consumers and investors.

According to him, the national grid recorded no system disturbance in the first quarter of the year, marking a notable improvement compared to previous years.

He described the development as a positive signal for system reliability.

Akinrolabu warned that frequency stability remained a concern, noting that daily system frequencies still operate outside acceptable limits.

He added that peak generation constraints and recurring load rejection continue to undermine supply consistency.

The power expert said recent electricity tariff adjustments were intended to improve revenue sustainability but stressed that tariffs alone would not resolve deep-rooted sectoral problems without accurate customer network mapping and effective consumption tracking.

He identified inadequate metering as a major efficiency challenge, noting that only 46.98 per cent of customers were metered, leaving millions on estimated billing, which fuels disputes and erodes trust.

Akinrolabu disclosed that average collection efficiency across Distribution Companies (DisCos) stands at 74.39 per cent, with some operators performing far below expectations.

He attributed revenue leakages partly to internal sabotage and weak customer data systems.

He said Aggregate Technical, Commercial and Collection (ATC&C) losses remain high at 39.61 per cent, well above the regulatory target of 20.54 per cent, underscoring the need for urgent operational reforms within DisCos.

On generation, Akinrolabu said Nigeria’s heavy dependence on gas continues to constrain output, as most plants operate below 50 per cent capacity due to supply shortages, pricing issues and pipeline vandalism.

He also pointed to aging transmission infrastructure, weak regulatory enforcement and limited investment as factors slowing sector-wide progress.

To consolidate recent gains, he called for reforms including a review of gas pricing to attract investment, expansion of gas infrastructure, improved pipeline security, settlement of outstanding gas debts and mandatory customer network mapping by DisCos.

While commending the intent behind tariff adjustments, Akinrolabu stressed that effective execution would determine their success.

“Without proper customer network mapping and consumption tracking, tariff adjustments alone may not translate into improved revenue or better service delivery,” he said.

 

Edited by Olawunmi Ashafa

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