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Frequent Grid Collapses Threaten Nigeria’s Hydropower Sector with N30bn Loss

Nigeria’s hydropower infrastructure has faced significant challenges over the last three years, as recurring national grid failures have cost Kanji and Jebba power plants approximately N30.5 billion. These failures, caused by technical and systemic issues, have disrupted energy distribution, damaged critical equipment, and amplified operational costs for power generation companies.

Between 2022 and 2024, the losses incurred by these two major hydropower plants escalated, with 2024 marking the highest recorded loss at N21.87 billion. A report reviewed by Punch News highlighted that the plants lost 356,759 megawatt hours this year alone due to grid collapses, system instability, and unplanned outages.

The Federal Government has attributed the frequent collapses to ageing infrastructure, sabotage, and inadequate maintenance of electricity facilities, including transmission towers and substations. Industry experts have also pointed to overloaded transmission lines, insufficient system protection, and the absence of timely grid upgrades as primary causes.

The Association of Power Generation Companies’ CEO, Joy Ogaji, emphasized the severity of the issue during a recent media briefing in Abuja. “Grid collapses significantly disrupt operations, damage equipment, and lead to substantial revenue losses for generation companies. Addressing these issues requires intentional efforts to improve infrastructure and enforce maintenance protocols,” she said.

She added that apart from the financial toll, grid collapses threaten the reliability and efficiency of Nigeria’s electricity supply. “Damage to turbines, contamination of lubrication oil, and misalignment of critical components exacerbate the challenges faced by hydropower facilities.”

The recurring collapses have also brought about penalties for non-delivery of power and increased operational costs for generation companies, further straining the sector.

Experts, including Stephen Ogaji, have stressed the need for strict compliance with grid codes to mitigate the impact of these collapses. He noted, “Adherence to operational standards and coordinated efforts between regulatory bodies, the government, and power companies are crucial for stabilizing the grid and safeguarding the sector.”

This report, as published by Punch News, underscores the pressing need for Nigeria to overhaul its power transmission system to prevent further losses and ensure stable electricity for economic growth.

SOURCE: Wealthfaq

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