Nigeria’s power crisis is a complex issue that requires careful consideration to revive the country’s industrial capabilities and transform its economy. The current administration’s plans to improve the economy will not materialize without addressing power generation. With an estimated need of 60,000 megawatts, the country struggles to distribute the meager 7000 megawatts it generates due to outdated equipment and power lines. The privatization of the Power Holding Company of Nigeria in 2013 has not improved the situation, and frequent power outages have resulted in high production costs and the relocation of many companies to other countries. The lack of power affects small businesses, which are the backbone of the Nigerian economy, and impedes economic growth. The World Bank approved a Power Sector Recovery Operation (PSRO) of $750 million to improve power sector performance, achieve financial and fiscal sustainability, and enhance accountability in the power sector. The PSRO will help restore the power sector’s financial viability and increase annual electricity supplied to the distribution grid. The recently passed law by President Muhammadu Buhari has made power generation, transmission, and distribution legal for states and local governments to venture into this sector. The incoming administration of Asiwaju Bola Ahmed Tinubu should encourage states to generate their own electricity to free up the National Grid to take care of other areas.
