by Sunkanmi Olowo—GreenMax Business Development Director

Nigeria’s power sector reform has hit a snag. The recent suspension of granting regulatory autonomy to states has many frustrated. The Minister for Power cites “market immaturity” as a reason for the delay, but is this entirely justified? Let’s examine the situation closely.

The Minister argues that Nigeria’s electricity market isn’t developed enough for state-level control. This raises a crucial question: If the market truly wasn’t ready, why introduce the Electricity Act 2023 in the first place? Shouldn’t a thorough assessment of the market’s health precede such legislation?

We’ve seen this kind of hesitancy before. Remember the archaic, government-controlled telephone system? Deregulation opened the door to private investment, innovation, and incredible growth. Imagine an “immature” market transforming into a network with over 189 million lines in just two decades!

The same story applies to the banking sector. Deregulation ushered in competition and efficiency, a stark contrast to the sluggish state-run system. Today, enterprising Nigerians are even pioneering advancements in renewable energy, offering a glimmer of hope for energy independence. Yet, concerns about an immature market are holding us back.

The truth is that progress requires bold decisions and unwavering implementation. Fears of job losses and tariff increases are understandable, but a well-planned transition can mitigate these concerns. We cannot expect constant darkness to foster development. Reliable power is the engine of a thriving economy, and it doesn’t come cheap anywhere in the world.

Electricity, like many other commodities, thrives on a system where buyers and sellers operate freely under strong regulatory oversight. A functional market fosters competition, incentivizes investment, and ultimately benefits consumers.

Let’s not be prisoners of indecision but rather embrace the Electricity Act and move forward with a well-structured reform plan. By nurturing a competitive market, we can unlock the immense potential of Nigeria’s power sector and finally step out of the darkness.