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Claim: A recent claim submitted to the DUBAWA chatbot queried if electricity in Nigeria has been fully privatised.
Verdict: FALSE! Nigeria’s electricity sector is partly privatised. While electricity generation and distribution are private, the government retains control over transmission, which plays a key role in regulation and pricing.
Full Text
Electricity supply in Nigeria began in 1886. Over the years, the sector evolved with the establishment of the Electricity Corporation of Nigeria (ECN) in 1951 and the Niger Dams Authority (NDA) in 1962. These entities merged in 1972 to form the National Electric Power Authority (NEPA), which was later renamed Power Holding Company of Nigeria (PHCN) in 2005.
Recently, the minister for power, Adebayo Adelabu, hinted that electricity consumers in Band B are not paying enough and may soon have to pay more. Under the current structure, Band A customers are entitled to a minimum of 20 hours of power per day, Band B gets a minimum of 16 hours, and Band C gets 12 hours.
Recently, a claim was submitted to the DUBAWA chatbot asking about the privatisation of electricity in Nigeria.
This query kept coming, suggesting the public’s interest in understanding electricity issues in Nigeria, so DUBAWA decided to investigate this and provide the facts.
Verification
Africa Business reported on Sept. 30, 2013, that the Nigerian government formally presented certificates and legal papers to the new owners of 15 state-owned power generation and distribution companies under the privatisation scheme, describing it as a new chapter in the power sector.
The country has six Generation Companies (GenCos) and eleven Distribution Companies (DisCos) responsible for producing and supplying consumer electricity. According to a report by the Nigerian Electricity Regulatory Commission (NERC), which regulates the electricity market and tariffs, these entities are privately owned but operate under strict regulatory oversight from the NERC.
Despite privatisation efforts, electricity transmission remains under government control through the Transmission Company of Nigeria (TCN). TCN manages the national grid, which means that even though private entities generate and distribute electricity, they rely on a government-run infrastructure to transmit power.
The power sector is still regulated, with the NERC determining electricity tariffs, service standards, and consumer protection policies. Recent comments by the Minister of Power, Adebayo Adelabu, about a possible tariff increase for Band B customers further illustrate government influence in pricing.
The Nigerian government also intervenes through subsidies and policies affecting electricity distribution and pricing.
Conclusion
Our findings reveal that Nigeria’s electricity sector is not fully privatised. While generation and distribution are private, the government retains control over transmission and plays a key role in regulation and pricing.
