Nigeria’s power sector is facing a critical reckoning, with systemic failures rooted in poor governance now too big to ignore. Minister of Power, Bayo Adelabu, has placed the blame squarely on weak corporate governance within government-owned enterprises.
At the inaugural corporate governance forum hosted by the Ministry of Finance Incorporated (MOFI) in collaboration with the World Bank, Adelabu said bluntly: “State-owned power assets are underperforming because they are poorly run.”
Key state-run generation plants with a combined capacity of 4,000MW are barely producing 800MW—just 20% of what they’re built for. In contrast, private sector operators like Azura and Transcorp are delivering stronger, more reliable results.
But the story doesn’t stop at diagnosis.
Reforms are in motion.
As part of the new Electricity Act of 2023, the government has unbundled the Transmission Company of Nigeria (TCN) into two separate entities — the Nigeria Independent System Operator (NISO) and the Transmission Service Provider (TSP). The aim: to drive transparency, boost efficiency, and attract real investment into the grid.
Adelabu also emphasized the urgent need for the government to play a stronger role as a shareholder in DISCOs, where it holds a 40% stake, warning that indifference has led to private partners underperforming without accountability.
Speaking at the same event, World Bank VP for Africa, Ndiame Diop, urged Nigeria to unlock the economic value of its state-owned enterprises (SOEs) by enforcing financial transparency and governance reform.
A newly launched corporate governance scorecard will track performance across 50+ SOEs, including those in power, infrastructure, and finance.
The Way Forward
Nigeria’s power crisis isn’t new—but the push for reform is gaining structure. From policy overhauls to performance scorecards and the unbundling of TCN, there’s now a path being laid out.
But without political will, strict enforcement, and private sector discipline, these efforts could go the way of previous unfulfilled promises.
The real question: Will the government stick to the script long enough to deliver results?
