Energy expert Adetayo Adegbemle has blamed Nigeria’s worsening electricity crisis largely on government policy failures and unpaid subsidy obligations rather than electricity distribution companies.
In a detailed analysis of the country’s power sector challenges, Adegbemle argued that many Nigerians wrongly direct their frustration at DisCos because they are the visible face of electricity billing, while the deeper problem lies in government financial commitments that remain unpaid.
According to him, data from 2025 showed that electricity distribution companies collectively remitted over 93 per cent of their payment obligations to the Nigerian Bulk Electricity Trading Company, indicating a high level of compliance despite operating under difficult conditions.
He explained that while DisCos continued meeting most of their obligations, the Federal Government reportedly accumulated about N1.93tn in electricity subsidy debts in 2025 but paid only a fraction of the amount.
Adegbemle stated that unpaid subsidy commitments now account for the bulk of the financial crisis facing Nigeria’s power sector, with accumulated industry debt already exceeding N6tn and projected to rise further if urgent reforms are not implemented.
The energy analyst noted that Nigeria has operated for years with electricity tariffs that do not reflect the actual cost of power generation and distribution.
According to him, governments have repeatedly delayed difficult decisions on tariff adjustments while promising subsidies they fail to fund adequately, creating a cycle of debt affecting generation companies, gas suppliers and electricity providers.
He said the situation worsened over the years due to rising inflation, increased gas prices, naira depreciation and growing infrastructure costs, while electricity tariffs for many consumers remained largely unchanged.
Adegbemle described the 2024 Band A tariff adjustment as one of the few realistic steps taken to improve the sector, noting that revenue collection and remittances improved significantly after the increase.
He also defended private investors in the electricity sector, saying many reputable companies entered the market after the 2013 privatisation with expectations that government policies and subsidy agreements would remain stable.
Instead, he argued, investors were faced with constant policy reversals, delayed tariff reviews and unpaid government obligations, making long-term investment difficult.
The analyst warned that the uncertainty is discouraging both local and international investors from committing funds to Nigeria’s power sector, limiting the country’s ability to expand electricity generation and infrastructure.
Adegbemle, however, expressed optimism over the Electricity Act 2023, which gives states greater control to develop and regulate their own electricity markets independently of the Federal Government.
He pointed to Abia State’s partnership with Geometric Power as an example of what decentralised electricity reforms can achieve, saying the project has already improved power supply to industries and businesses in the state.
According to him, states now have an opportunity to collaborate on power projects, attract investors and build more reliable electricity systems outside the limitations of the national grid.
He urged Nigerians to demand clearer government policies, proper funding of subsidies, gradual implementation of cost-reflective tariffs and faster adoption of state electricity laws to address the country’s persistent power challenges.
Adegbemle stressed that Nigeria’s electricity crisis is not unavoidable, insisting that the country already has the legal framework needed for reform but lacks the political will to fully implement it.
