Strategic management and consolidation for Nigeria’s electricity industry | TheCable

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OPINION BY CHUKWUEMEKA UWANAKA: Strategic management and consolidation for Nigeria’s electricity industry | TheCable

Nigeria Electricity Supply Industry . The crisis in the NESI is characterised by the recent takeover of many electricity distribution companies by commercial banks and lenders due to poor management performance, exemplified by loan default, the frequent collapse of the national electricity grid network, strike actions by electricity sector workers; and 44.6% of Nigerians still without access to the electricity grid- one of the highest in the world, in nominal terms.

The expectations of privatisation were hinged on the success of privatisation in the Nigeria telecommunications industry, where increased involvement of the private sector led to an increase in telephone lines from about 400,000 in 2001 before the auction of GSM licenses to private companies to about 206 million telephone lines in 2022. While the World Bank estimates that 44.

One of the other major complaints in the industry has been the reconciliation of accounts between GenCos and DisCos. Therefore, having the same or similar companies owning a substantial stake in both sub-sectors should help eliminate this major problem.

 

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