POWER SECTOR CRISIS DEEPENS AS COMMUNITIES ARE THROWN INTO A GREATER DARKNESS
FOR RENATIONALISATION AND DEMOCRATIC MANANGEMENT OF ELECTRICITY
In the last two months, gas producers and power generation companies have technically embarked on bosses’ strike. As a result, supply of gas to power plants has reduced considerably, rendering 16 out of the 33 power plants redundant at a stage. If it were electricity workers that embarked on strike over welfare issues, the government would have deplored security agents to harass workers and labour leaders.
By Chinedu Bosah
The resultant effect is widespread darkness across the country as the power supply on some days from its peak of 4500MW to 2,800MW. The supply had collapsed 3 weeks before the start of US/Israeli attack on Iran and its global disruption on gas and crude oil supply. This is because of debt (about N2 trillion) the multinational gas companies claim they were owed while GENCOs are also making a claim of 6.3 trillion something the government disputed, putting its own figure at N4 trillion. Aside from the volatility of the energy market, Nigeria energy crises remain unresolved. In the midst of gas crisis, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has increased the price of natural gas for power generation from $2.13 to $2.18 MMBtu in order to guarantee more profit to the Nigerian government and gas companies.
Nigeria is 16th in the global ranking of gas production, with annual production of 7 billion cubic feet and around 200 trillion cubic feet of gas reserve. Nigeria’s gas reserve and production capacity has hugely benefited and profited the multinational gas companies at the expense of Nigerian people. Only CAPITALISM can convert abundance into scarcity, affordability into luxury and stability into crises. For instance, in the Liquefied Natural Gas Limited Joint Venture, the NNPC Company Ltd has 49% share but does not control the company because a combination of shares of Shell Gas (25%), Total Energies LNG (15%) and Eni (10.4%) gives a cartel of these multinational companies the majority shareholding control of 51%. So, it is the multinational companies, with the collaboration of the government, that control prices of gas to the detriment of Nigerian working masses. Besides, this explains why gas sold to power plants is expensive despite being a resource collectively owned by Nigerian people- a case of being thirsty while in the water!
By and large, the power sector value chain is in crisis, gas supply is inadequate and expensive, the generation companies is generating between 2800MW and 4500MW which is far less than the installed capacity (14,000MW), transmission is doing poorly on account of aged lines and infrastructure while the distribution companies fail to invest in basic facilities and infrastructure but rather brazenly extort and exploit consumers. The low power generation is bad enough, but the situation has been made worse by the distribution companies which criminally reject electricity load, taking smaller quantity and thereby plunge the communities into a greater darkness – this is a huge sabotage of the economy.
According to a Punch report of March 30, 2026, the GENCOs accused the DISCOs of rejecting load and only pick up power transmitted to areas where they could sell it and make more money. Joy Ogaji, the Chief Executive Officer of the Association of Power Generation Company went on to state that the gas situation was not the only problem responsible for the current low power supplies and that load rejection by DISCOs also immensely contributed to the current outages such that out of the available 7000MW, the DISCOs pick 4,000MW or less. In the midst of problems created by profit-chasing private electricity, it is the working masses that bear the brunt through widespread darkness. The pure supply of electricity has forced many businesses and households to generate their own electricity at exorbitant cost, reportedly totaling $20 billion annually on diesel and petrol generators as well as photovoltaic solar products.
All neo-liberal reforms (privatisation, commercialisation, liberalisation etc) to resolve the Nigeria power problems just like all other socio-economic problems through market economy have failed woefully. The capitalist ruling elite and their capitalist ideologues have gone full circle, languishing in the wilderness of confusion and now trading in blame-game. Some neo-liberal advocates are shamelessly demanding the privatisation of Transition Company (TCN), presenting as the solution but refusing to state the reasons GENCOs and DISCOs have failed woefully. We recognise the woeful performance of the Transmission Company. It is due to the bureaucratic and corrupt management of the company and to correct it will entail adequate investment under democratic management and control of workers/experts and consumers. Hence, privatisation of TCN will spell more doom for the sector and will consolidate and deepen the power crises.
Privatisation of the power sector was presented as the magic wand by the self-serving capitalist ruling elite but it has proved to be an opportunity for exploitation and cesspool of corruption. Since the privatisation of power sector in November 2013, electricity has become a luxury for some and darkness for many. The DISCOs are only interested in crazy/outrageous billing and fleecing people of their hard-earned money, forcing communities/customers to buy or repair transformers, buy prepaid meters etc.
The power sector is broken and in disarray despite government intervention funds. According to Daily Trust’s report of February 7, 2026, federal government has spent over N7 trillion on the power sector since 2013 with no significant result. The GENCOs are producing very little, transmission is weak and still based on old infrastructure. Four DISCOs have collapsed since the privatisation due to mismanagement and corruption, forcing government to take over the management. The power crisis continues but power companies pay huge salaries and bonuses to top officials and owners while top government officials corruptly enrich themselves. These are the only benefits of privatisation.
In response to the power problem, President Tinubu appears to have abandoned the Nigerian people as the government spent a whopping 10 billion Naira of public funds to install solar grid to Aso Rock while millions of Nigeria wallow in darkness. Many communities are plunged into darkness for days and weeks while many are subjected to unpalatable rationing of electricity that does not go beyond 2 hours daily. This is an example of how capitalist politicians throw millions of people into more poverty while enriching themselves.
We call on working people and communities to organise campaigns to demand adequate power supply and fight against high tariffs and exploitation of consumers by electricity companies. However, the real solution to the power crisis can only begin by reversing the privatisation and returning the power sector to public ownership, and invest massively in the sector. However, in order to safeguard against the repeat of the bitter experience of the old NEPA/PHCN, the sector must be placed under democratic control of workers and consumers. This will provide protection against the usual unbridled corruption and exploitation and ensure transparency and efficient management. Also importantly, the public ownership of power has to be part of a program to reverse all capitalist policies and nationalise the commanding heights of the economy under working people democratic management as a step towards tackling a myriad of socio-economic problems afflicting the country despite its huge human and material resources. While we call on workers and community people to fight for these with campaigns and mass struggles, it should be realised that working people need our own party on a socialist program to struggle for political power in order to use the resources and wealth of the country for the benefit of all.