Abstract

The 1979 and 1999 constitutions of Nigeria created anti-development frameworks that unhealthily endowed the federal government with excessive powers in direct contravention of the most basic tenets of federalism. One of the items that has remained subtly contrived in the exclusive list is power generation. The 2005 Electric Power Sector Reform Act through Sections 8, 65 and 66 established and licensed Transmission Company of Nigeria (TCN) to take charge of transmission and system operation of high voltage network of the Nigerian electricity supply industry. Thus, the Nigerian energy policy structure continues to be top-down involving huge investments in large electricity mega plants, generating electricity into mega grids for mega distribution. Based mainly on secondary sources of data, this paper is a descriptive and analytical clarification of issues on power sharing as key impediment to poor electricity generation, transmission and distribution in Nigeria. The study examines the implications of power behemoth federal government that stifles autonomy of federating units in Nigeria. It observes that the exclusive right to electricity transmission by the federal government negates sustainable electric power supply in Nigeria. It therefore recommended devolution of powers and streamlining of Second Schedule of 1999 Constitution to reflect a true federal system

Highlights

  • Federalism is one of the most important constitutional concepts and designs which enable legitimacy of political power with regard to a fragmented society (Fleiner, 2006)

  • There should be clarity with respect to the criteria for generally licensing of off-grid projects in urban and industrial clusters; f) A detailed review of the second schedule of the 1999 constitution to pave way for devolution of powers to the component units of the Nigerian federalism is recommended; g) Nigerian Electricity Regulatory Commission (NERC) should create an avenue to enable easier licensing for off-grid licensees who have excess or stranded power, and wish to supply to the Distribution Companies (DISCOs); h) That state governments should exploit and utilize their available natural resources towards effective power generation and transmission to stimulate economic growth and development; i) All public institutions starting with tertiary education institutions should engage in renewable energy development

  • About 95 million Nigerians representing 55% of the population have no access to electricity and those who are connected to the grid face extensive power interruptions

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Summary

INTRODUCTION

Federalism is one of the most important constitutional concepts and designs which enable legitimacy of political power with regard to a fragmented society (Fleiner, 2006). Power devolution focuses on organizations and procedures for increasing citizen participation in governance of both human and material resources This invariably implies that by devolving right to legislate on power generation and transmission to the component units, state governments and the general public would have opportunities of robust investment in the power sector that could conduce to perfect competition and give rise to both direct and indirect socio-economic implications beneficial to production of goods and services in Nigeria. This paper argues that political power devolution endorses the value of diversity of government units in autonomy and is more likely to produce a diversity of policy responses that facilitate mobilization, augmentation and utilization of natural and human resources to citizens' needs such as generation and effective transmission of electricity. Since the installed capacity of the national grid cannot accommodate the electricity demand of Nigeria based on poor coverage and outdated infrastructure, does it still provide the required functions? If the amount of power generated by the IPPs in Lagos can provide Lagos and its environs constant supply, would it not be better to take the Lagos IPPs out of the archaic national grid? Would it not make sense for the IPPs in the Niger Delta or Sokoto or Kano or Sapele to supply power to their immediate environment? There is urgent need for Nigeria to dispense with the national grid and allow the generated power to be supplied directly to consumers? We acknowledge the inherent risks but in the meantime let there be electricity supply

ECONOMIC IMPLICATIONS OF DISINTEGRATING THE NATIONAL GRID
Findings
CONCLUSION

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