Nigeria has spent more than N7 trillion on the power sector since its privatisation in 2013, yet the country continues to grapple with persistent blackouts and an unreliable electricity supply.
The federal government is estimated to have spent over N7 trillion on Nigeria’s power sector since it was privatised in 2013, in a bid to improve electricity supply across the country. Despite the massive investment, regular and steady power remains elusive, with major cities plunged into darkness twice within the first month of 2026 following losses from the national grid. In previous administrations, power generation reportedly fell as low as 1,800 megawatts at certain periods, while transmission and distribution networks were hampered by obsolete equipment and structural inefficiencies.
Although Nigeria’s power challenges predate 1999, the return to democratic rule raised hopes of reform, especially after the sector was liberalised to attract private investment. The Electric Power Sector Reform Act of 2005 laid the groundwork for restructuring, transforming the defunct National Electric Power Authority (NEPA) into the Power Holding Company of Nigeria (PHCN), which comprised 18 successor companies — six generation companies, one transmission company and 11 distribution companies. In 2013, PHCN ceased to exist after its assets were handed over to private investors who acquired the companies.
Successive administrations since 1999 have prioritised power sector reforms, recognising electricity as critical to economic growth. During the Olusegun Obasanjo administration, the first minister of power, Chief Bola Ige, pledged to make “power failure a thing of the past” within six months and promised regular briefings to Nigerians. However, the goal was not achieved, and grid collapses persisted. Later governments focused on revamping vandalised thermal stations and building new plants, while former President Goodluck Jonathan said Nigeria would require about $900 billion over 30 years to fix its energy sector.