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Nigeria’s power sector is facing a deepening crisis, and the lights are dimming on investor confidence. There’s a growing buzz of concern, and it’s not just about flickering bulbs at home. Private firms, the engines of our economy, are increasingly considering a drastic measure: disconnecting from the national grid entirely.
Why the alarming trend? The answer lies in the persistent and frustrating reality of our electricity supply. Daily Trust recently highlighted what many businesses already know firsthand: recurring grid collapses, unstable power, and unreliable supply have become the norm, not the exception. Imagine running a factory, a hospital, or a large office building where power can go out several times a day, without warning, sometimes for extended periods. The cost of these disruptions – in lost productivity, damaged equipment, and operational overheads for alternative power sources like generators – is simply astronomical.
This ‘cash squeeze’ isn’t just about the cost of electricity; it’s about the cost of unreliable electricity. For many companies, the calculation is stark: can they continue to bleed money due to an erratic national grid, or is it time to invest in their own independent power solutions? This move towards ‘captive power generation’ means setting up dedicated power plants, often gas-fired or solar, to meet their specific energy needs, completely bypassing the national grid.
While this offers a lifeline for the individual businesses able to afford it, it spells deeper trouble for Nigeria’s overall power sector. Each company that exits represents a loss of revenue for the distribution companies (DisCos) and further strains an already fragile ecosystem. It’s a vicious cycle: as more reliable customers leave, the grid’s financial viability weakens, potentially leading to even worse service for those who remain connected. This exodus undermines efforts to stabilize and improve the national power infrastructure, creating a two-tiered energy system where only the well-resourced can guarantee their power supply.
The time for urgent and decisive action is now. Without significant and sustained reforms to ensure a stable and reliable power supply, Nigeria risks not only losing more key players from its national grid but also stifling economic growth and deterring much-needed investment. The challenge is clear: can we mend our grid before more companies decide it’s simply beyond repair?
Source: Original Article
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