Electricity Crisis: Technology Alone Not Enough, Says Energy Economist
Call for Broader Reform Beyond Technology
AN energy economist has called on policymakers to rethink Nigeria’s approach to power sector reforms, stressing that technological upgrades alone cannot resolve the country’s persistent electricity challenges.
Speaking in an interview, Prof. Wumi Iledare argued that while investments in infrastructure and innovation are necessary, they must be complemented by sound economic and institutional frameworks to deliver meaningful results.
Electricity as an Economic System
According to the expert, electricity should not be viewed merely as a technical issue of generation and distribution, but as an integrated economic system that must be efficient, affordable, and sustainable.
He emphasised that improving power supply requires attention to pricing structures, cost recovery mechanisms, and market viability—factors that directly influence the sector’s long-term stability.
Nigeria’s electricity sector has long struggled with supply deficits, generating far below national demand, a gap that continues to hinder economic productivity and industrial growth.
Affordability, Reliability Key to Impact
Iledare noted that the real measure of progress in the power sector lies in its impact on households and businesses. He stressed that electricity must be:
- Affordable for consumers
- Reliable for daily use
- Sustainable for long-term development
Without these elements, he warned, improvements in generation capacity or grid infrastructure would have limited effect on citizens’ quality of life.
Need for Stronger Institutions and Policies
The expert further highlighted the importance of institutional reforms, noting that weak regulatory frameworks and policy inconsistencies have historically undermined progress in the sector.
He advocated for a more coordinated approach that aligns energy policy with broader economic objectives such as industrialisation, job creation, and national competitiveness.
Power Sector Central to Economic Growth
Electricity remains a critical driver of economic development in Nigeria, with inadequate supply continuing to constrain businesses and increase reliance on costly alternatives like private generators.
Experts argue that without a strong economic foundation, technological investments alone may fail to unlock the sector’s full potential or deliver the transformative impact needed across industries.
