Power To The People: How The Jonathan Privatisation Gave Nigeria Light, And Why Synergy Must Not Save It
There was a time in Nigeria when darkness was not just the absence of light. It was policy. For decades, we lived with a power sector that was state-owned, state-run,
Nigeria's power sector, once state-owned and state-run, faced decades of failure, with citizens enduring frequent darkness and unreliable electricity. That changed in 2013 under President Goodluck Ebele Jonathan's administration, which initiated the country's first successful power sector privatization. The government broke up the monolithic Nigerian Electricity Distribution Company (NEPA/PHCN) and handed over generation and distribution to private companies, known as Generating Companies (GENCOs).
Despite skepticism, privatization proved successful in generating significant results. The Baseline Before 2013 revealed that generation hovered dangerously low, and the national grid could barely produce 0 megawatts per hour, while PHCN operated like a bureaucracy with no incentive to maintain plants, generate revenue, or invest in infrastructure. Darkness became the norm for Nigerians, who accepted "up NEPA" as a prayer rather than a plan.
The privatization process was transparent and open, with companies competing based on capacity, financial stability, technical expertise, and their ability to pay. Dangote Group, Africa's largest conglomerate, was locked out for five minutes during the bidding process, emphasizing the fairness of the competition. Private investors injected billions of dollars into the sector, funding the restoration of aging turbines and the implementation of accountability measures.
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