Nigerian energy analyst Nick Agule has urged the country’s incoming Minister of Power, Joseph Tegbe, to cancel the operating licences of electricity distribution firms and hand the networks to more capable management. Agule, who spoke during an appearance on Arise Television on Sunday, argued that Nigeria’s power shortage is so severe that reforms focused only on day-to-day operational fixes will not be enough without revisiting earlier policy decisions.
Key takeaways
- Nick Agule called on Minister of Power Joseph Tegbe to revoke licences held by electricity distribution companies (DISCOs) and reassign them to qualified operators.
- He said Nigeria requires about 200,000 megawatts of electricity capacity, while current output is around 5,000 megawatts.
- Agule warned that tackling issues tied to metering, gas delivery, and transmission would be insufficient if treated as purely operational problems.
- He argued the minister’s responsibilities should centre on policy and administration to shape an environment where service providers can perform effectively.
- Agule urged Tegbe to review the 2013 privatisation programme and questioned why the transmission segment was not included.
Power supply gap and the scale of reform needed
Agule said Nigeria’s electricity needs are far larger than what the system can currently deliver, placing the challenge in stark terms. He estimated that the country requires roughly 200,000 megawatts to meet demand, but produces only about 5,000 megawatts at present. In his view, the resulting shortfall means Tegbe faces an unusually demanding agenda from the outset.
Licensing, operations, and the role of policy
While commenting on Tegbe’s reported priorities—particularly efforts aimed at metering, gas supply, and transmission—Agule said the focus raises concerns. He characterised those areas as operational matters rather than issues that can be solved solely through ministerial directives. Instead, he argued that the minister should concentrate on policy and administrative levers that can improve conditions for the organisations running those functions.
Agule also recommended that the government revisit the licensing framework for distribution utilities. He urged the minister to revoke the licences of Nigeria’s electricity distribution companies and transfer the assets to operators he described as competent, implying that current arrangements have failed to produce the performance needed to close the power gap.
Revisiting 2013 privatisation and the transmission bottleneck
Beyond distribution, Agule called for a reassessment of the 2013 privatisation exercise, specifically questioning why the transmission sector was not privatised alongside other segments. He argued that bringing transmission under a different ownership and management structure could help reduce bottlenecks and chronic underfunding, which he said have constrained the wider power value chain.
