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Incessant National Grid collapse: Stakeholders lament dwindling business fortunes

By Vincent Egunyanga and Ben Adoga, Abuja

 

Nigerians across board have expressed displeasure about the epileptic nature of the National Grid that has collapsed for no less than 15 times in 17 months under President Bola Tinubu led administration.


They are also lamenting the economic misfortunes the seemingly unending collapse of the grid has brought upon businesses, crippling them and making their owners all over the country to incur losses and avoidable debts.


The Executive Officer of Centre Point Investment, Mr. Tayo Iyediran, while commenting on the issue, expressed utmost disappointment on the lull in business activities brought about by continuous power supply disruption.


According to Iyediran, power drives the economy and without its constant supply the economy would be grounded.


He said the increase in the cost of Automotive Gas Oil (AGO) otherwise known as Diesel and the Premium Motor Spirit, also known as petrol, has further aggravated the cost of doing business, thereby making the business environment more chaotic.


Chukwuma Igwe, is a Nigerian, who is a major distributor of telecommunication service provider such as MTN, GLO and Airtel, hinted the incessant collapse of the national grid has sent most people out of business, particularly in the northern part of the country.

  “A great number of people are out of business in the northern region due to the total collapse of the national grid. It is a pathetic situation,” he lamented.


A member of the Abuja Chamber of Commerce, Vincent Okon, noted that the prices of services in the hospitality business such as hotel accommodation, have also gone up by over 50 percent, especially in Abuja because most of the hotels run on generators, whenever there is power outage, adding that service providers such as MTN have increased their rate/ tariffs, with MTN adding N50 to their call cards.  


For instance, the call card of N500 now goes for N600 in many places in the Federal Capital Territory (FCT), attributing the unauthorized increase to cost of fuel and other expenses incurred in the cost of production.


Okon stressed that billions of naira have also been lost to the collapse of the grid in the last six months. “Many low-income earners and small enterprises like barbing saloons, tailors, business centres owners etc. have not been opening shops,” he said.  


A security expert, Tajib Barewa, said there were security implications when the whole country was thrown into darkness as men of the underworld could take advantage of the darkness to commit crime.


Also, a retired engineer of the defunct National Electric Power Authority (NEPA), Dotun Adeguloye, described the whole episode as a national disgrace. “It’s a shame and a total disgrace for Nigeria to still be grappling with inconsistent power supply. This is simply unacceptable.


“This goes to show that either the equipment is old or obsolete and may not be well maintained. It could also be that engineers are negligent or not having enough capacity to handle the responsibility given them,” he said.


Adegunloye, however, called for a complete overhaul of the sector. “It is hard to comprehend that a country with a population of over 230 million will depend on only one power grid at that age,” he said.  


He continued: “It will not be enough to decentralise the TCN, but totally decentralise distribution of power in Nigeria and allowing more participation will call for efficiency. In the US, there are multiple power grids, just like in Canada.


“In America they have the Eastern Interconnect, the Western Interconnect and Texas Interconnect which is also known as the Electric Reliability Council of Texas, ERCOT and other minor private players in the industry.


“In Canada, it’s organised along provincial and territorial lines, with each province having its own utilities boards to regulate transmission and distribution.”


“This setup allows for regional management and adaptation to local energy needs. They also engage independent power plants and municipal companies.


“Back to Nigeria, it will be too demanding to say states should set up their grids. I would rather recommend zonal arrangements, taking into consideration peculiarities and proximities like Bauchi and Plateau states being in different geopolitical zones or Southern Kaduna, Plateau and parts of Nasarawa state. It is doable.

 

Some parts of the US get their power supply from Canada,” he added.


A retiree of the Federal Ministry of Agriculture, who gave his name as Kunle, added a different perspective to the grid collapse issue.

 

“What’s happening now calls for proper investigation. It may not be only ageing equipment as the Minister of Power has said. I suspect corruption, lack of capacity and even sabotage,” he said.


“For the national grid to collapse two times in three days, 10 times this year alone. Industries, homes and institutions are all impacted negatively by the incessant collapse. It’s now obvious that it’s just not proper to clamp the whole country into one grid,” he added.


He continued: We don’t have to use one grid to be one country, that is not necessary. Let’s opt for alternatives-Solar, hydro, fossil, wind and any other. Meaning that generation and distribution should be handled in different locations according to advantages that are prevalent.


“Independent companies should come up with designs, sharing the country into four or six electricity distribution zones and harnessing the resources available to generate and distribute power.


“We don’t need one TCN. The companies should come up with their designs and template for generation and distribution while the government comes up with a strong and efficient regulatory framework where Nigerians will not be short changed.


“This way, an inefficient company can be taken over by an efficient one. This also allows for healthy competition, not the monopolies the government has created all over.


“We need modern electricity infrastructure to provide regular and efficient power in Nigeria, ” he added.

 

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