When quick fixes backfire

NIGERIA’s power sector privatisation, initiated in the mid-2000s and finalised in 2013, was hailed as a panacea for the country’s chronic electricity shortages. The promise was that private sector expertise and investment would bring reliable power to homes and businesses, driving economic growth and development. However, nearly two decades later, the results have been disappointing. Instead of solving the problem, privatization has created new ones including inefficiencies, higher tariffs, exploitations, etc. The power sector privatisation debacle bears an uncanny resemblance to the infamous “Cobra Effect”, a phenomenon where a well-intentioned solution creates unintended, often disastrous consequences. The term originates from British colonial India, where a bounty was placed on cobras to control their population. However, enterprising individuals began breeding cobras for the reward, leading to an eventual surge in the snake population. Similarly, in Nigeria’s power sector, the privatisation ‘solution’ has spawned a host of unforeseen problems. The private operators, prioritising profits over public interest, have failed to invest in infrastructure upgrades. Instead, they end up exploiting loopholes and manipulating tariffs to maximise gains. This has resulted in a paradoxical situation where consumers face higher bills and longer outages, while the operators reap substantial rewards.

In areas beyond the reach of electricity, residents always have to resort to forcing themselves to collectively fund the extension of power lines to their communities, only to be billed immediately after connection. Meanwhile, neighborhoods lacking transformers or experiencing overload or damage are left to languish in darkness for extended periods, without any proactive effort from power companies. Instead, these communities go on self-taxation, political favours, or philanthropic aid to resolve the issue. The power companies’ sole priority is to capitalize on existing infrastructure, without investing in upgrades or maintenance, and simply wait for the opportunity to generate profits through billing. When I first settled into my apartment, I embarked on the tedious journey of getting connected to the Abuja Electricity Distribution Company’s grid. The process, among others entailed hiring a contractor to inspect the property and validate the application, a necessary hurdle before receiving the coveted connection. After I was cleared of this bureaucratic obstacle, I was finally hooked up and promptly hit with estimated bills, a constant reminder of the arduous process I had to endure. Initially, I anticipated receiving a prepaid meter upon connection, but it never materialised. Instead, I was surprised with a bill from the very first month, which rapidly escalated in a startling geometric progression. It wasn’t until a year later that prepaid meters became available, but for purchase against the common knowledge I had, prompting me to hastily acquire one to escape the exorbitant and unjustified billing. With the new meter installed, I finally found relief from the constant, unwelcome visits from company representatives delivering bills and threatening disconnection for even the slightest payment delay. The prepaid meter brought a sense of control and peace of mind, shielding me from the harassment and financial strain.

At the time of meter installation, an outstanding balance was carried over from the previous billing period and integrated into the prepaid system. To recover the unpaid amount, a small portion was deducted from each subsequent recharge, spreading the repayment over time and minimising the financial strain. This arrangement worked seamlessly, steadily whittling down the debt without any disruption. Recently, I recharged my meter and was shocked and perplexed when, after recharging ₦5,000, as I expected to receive around 115 units but instead, found only 12 units or so credited to my account. Baffled by this discrepancy, I sought clarity at the company’s customer service center, eager to understand the reason behind this unexpected shortage. However, the explanation provided by the customer care representative left me utterly bewildered and speechless. The customer care representative revealed that the company aimed to recoup all outstanding debts from customers within six months, hence the drastic measure of deducting 90 percent of customer recharges.

I pressed for further explanation, inquiring why such a drastic decision would be implemented without prior notice to customers. Is this truly how a business should operate? The representative’s response only added to my frustration: “The situation you’re experiencing serves as the notice. You’re here now, aren’t you?” I shot back, “No issue. I’ll help spread the word about how your company treats customers.” With that, I left. I promptly inquired about my outstanding balance and settled it to escape further mistreatment, though the experience still lingered painfully in my mind. However, the ordeal didn’t end there. Since then, the value of my recharges has been inconsistent, making it impossible for me to predict the units I’ll receive for a given amount. The thought of visiting their office again to inquire about this issue fills me with dread. As a result, I’ve resigned myself to tolerating their subpar service, hoping for a better solution in the future.

It’s imperative that we revolutionize our approach to domestic energy sourcing in Nigeria. Governments, stakeholders, and policymakers should prioritize empowering households to generate their own energy, particularly through solar power. By integrating solar panels into roofing sheets, we can transform the energy landscape. This innovative approach will not only address customer dissatisfaction but also enhance security by minimizing the risks of fire outbreaks associated with the widespread use of exposed wires connecting communities and homes. Furthermore, we can explore other decentralised energy solutions, such as biogas generators for households with livestock or organic waste, and wind turbines for coastal or rural areas with suitable wind speeds. For instance, a family with a small farm can utilize biogas generators to convert animal waste into electricity, reducing their reliance on the grid and minimizing environmental impact. Similarly, communities in windy areas can adopt wind turbines to generate clean energy, as seen in the successful wind farm projects in some places. These localised energy solutions can increase energy independence, reduce transmission losses, and promote sustainable development while creating jobs and stimulating local economies.

The current state of energy supply in Nigeria is unsustainable and demands a radical transformation. By embracing decentralised energy solutions, such as solar-powered roofing sheets, biogas generators, and wind turbines, we can empower households to generate their own clean energy, reduce reliance on the grid, and mitigate the risks of fire outbreaks and environmental degradation. It is time for governments, stakeholders, and policymakers to prioritise investments in decentralized energy infrastructure, incentivize innovation, and create an enabling environment for off-grid energy solutions to thrive. Together, we can unlock a brighter energy future for Nigeria, where energy access is democratised, and economic growth is powered by clean, reliable, and sustainable energy.

• Lawan writes from Minna, Niger State, via [email protected]

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