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The year 2023 marked the tenth anniversary of the partial privatization of the power sector, where the Federal Government relinquished its 60% stakes in 11 electricity distribution companies and either sold or concessioned seven power generation plants. Despite this move toward privatization, electricity supply has remained inconsistent, leaving consumers frustrated. Surprisingly, the government, attempting to divest from the sector, ended up spending over N7 trillion to support the Nigerian Electricity Supply Industry (NESI).

The power sector underwent significant changes in 2023 with the signing into law of the Electoral Act, shifting the power sector from the exclusive legislative list to the concurrent list. This allowed state governments not only to issue licenses but also to generate, transmit, and distribute electricity within their states. Adebayo Adelabu's appointment as the Minister of Power marked a unique development, as he became the first individual to administer the sector single-handedly since the advent of the present democracy in 1999.

Despite a 13,000MW installed capacity from the country's 27 power generating plants, power generation remained exceptionally low due to poor utilization. The Nigerian Electricity Regulatory Commission (NERC) reported a worrying plant availability factor (PAF) of 33.31% in 2023/Q3, highlighting the significant issue of mechanical outages, particularly stemming from the age of many plants.

The Transmission Company of Nigeria (TCN), managing the national grid, faced challenges with repeated collapses and attacks on transmission towers. The government aimed to unbundle TCN into two entities, Independent System Operator and Transmission Service Provider. Despite efforts to upgrade substations and procure new transformers, incidents like fire outbreaks and attacks on power towers persisted.

Electricity distribution companies (DisCos) continued to perform poorly, neglecting infrastructure investments and lacking in proper metering. As of September 2023, only 44.51% of registered electricity customers in NESI were metered. The Federal Government took steps to address this metering gap, opening bids for 1.25 million electricity smart meters funded by a $155 million World Bank loan.

The Rural Electrification Agency (REA) played a role in rural electrification through the Nigeria Electrification Projects (NEP), providing electricity to 6.8 million people under a $350 million World Bank loan and a $200 million African Development Bank loan. The World Bank expressed interest in supporting a successor project with another $750 million grant.

Despite these efforts, the power sector faced financial struggles. Closing the metering gap was identified as a crucial step, with calls for the government to ensure that all customers are provided with electricity meters. Addressing losses, expanding and modernizing networks, and encouraging necessary investments in the sector were highlighted as essential measures to support tariff adjustments and improve overall efficiency in the power sector.

The Nigerian Labour Congress (NLC) has vehemently opposed the proposed privatization of the Transmission Company of Nigeria (TCN), expressing concerns over the potential negative impact on the socio-economic conditions of Nigerians. The rejection comes in response to the Federal Government's recent announcement regarding the sale of the state-owned company.

President of NLC, Joe Ajaero, emphasized the perilous consequences the planned privatization could have on the power sector, instilling significant fear and apprehension among major stakeholders. Ajaero highlighted the dangers involved and cautioned that this move could adversely affect the state's ability to control, regulate, and ensure the safety of the nation's grid system at all times.

In light of these concerns, NLC issued a call to action, urging all Nigerians to unite against the privatization proposal, emphasizing that it is crucial for safeguarding the interests of future generations. The labor union stands firm in its stance that the sale of TCN poses a threat to the nation's grid system and could have far-reaching implications on the overall stability of the power sector.