Energy experts and industry stakeholders have blamed longstanding governance failures for Nigeria’s persistent electricity crisis, despite the country possessing an estimated 210 trillion standard cubic feet of proven natural gas reserves. They argue that mismanagement, weak regulation, and policy inconsistencies have prevented the nation from translating its vast resources into reliable power supply.
Speaking at a recent energy forum in Abuja, participants noted that Nigeria remains heavily dependent on gas fired power plants, yet gas supply constraints frequently cripple generation capacity. They said the problem is not the absence of resources but the inability to build efficient systems that link gas production, transportation, and power generation.
Industry operators pointed to vandalism of pipelines, unpaid debts in the power sector, and poor maintenance of infrastructure as major obstacles. They also criticized the lack of cost reflective tariffs, which they say discourages private investment and limits the financial viability of generation and distribution companies.
According to data shared at the forum, several power plants operate far below installed capacity due to irregular gas supply. At the same time, transmission bottlenecks and distribution losses prevent available electricity from reaching end users. The result is a cycle of low revenue, mounting debts, and underinvestment across the value chain.
Policy experts stressed that governance reforms are essential. They called for clearer regulatory frameworks, stronger enforcement of contracts, and improved coordination between government agencies and private operators. Transparency in subsidy management and market settlements was also highlighted as critical to restoring investor confidence.
Stakeholders further argued that decentralized energy solutions, including embedded generation and renewable mini grids, should complement grid expansion. This approach, they said, would reduce pressure on the national grid and bring power closer to underserved communities.
They warned that without decisive reforms, Nigeria risks wasting its gas potential while businesses and households continue to rely on expensive self generation. Reliable electricity, they emphasized, is fundamental to industrial growth, job creation, and overall economic development.
