Beks Dagogo-Jack, who once led the Presidential Task Force on Power, stated that the continued crisis in Nigeria's electricity sector is primarily due to ineffective regulations, political factors, and a lack of discipline that have hindered earlier advancements made prior to 2015.
In an interview with ARISE NEWS on Sunday, Dagogo-Jack expressed strong disapproval of assertions suggesting that the privatisation of power in 2013 was flawed, maintaining that the critical reform efforts were intentionally interrupted before they had time to succeed.
He remarked, "The period from 2010 to 2014 saw Nigeria increase its electricity generation capacity from around 2,000 megawatts to over 5,000 megawatts by late 2012, and by 2014, we had surpassed 10,000 megawatts of installed capacity." He described this timeframe as one of the most effective and transparent periods of power reform in Nigeria, largely due to direct oversight from the presidency.
"President Jonathan achieved what many leaders, both before and after him, failed to do. He actively took responsibility for the power sector, establishing the Presidential Task Force on Power and personally chairing it, which demonstrated his commitment and ownership of the initiative," Dagogo- Jack explained.
He detailed that the reform framework included specific benchmarks, performance indicators, and clear accountability structures. "The path of reform was distinctly outlined with measurable goals, enabling those committed to it to track the sector's progress effectively," he added.
In reaction to claims regarding the failure of privatisation, he stated that critics often overlook the natural transition period necessary for complex reforms in the market.
"By 2013, all the successor entities had been transferred, which only marked about half of the reform process. These investors were still acclimating to the market conditions and dynamics unique to Nigeria when the previous administration came to a close. Elections have profound implications," he highlighted.
Dagogo-Jack pointed out that the most significant setbacks occurred post-2015, when the reform measures were compromised rather than evaluated for potential improvements.
"Those who took over after President Jonathan should have asked pertinent questions: what is the current state, what can be enhanced, and what needs modification? Instead, the reform initiatives were dismissed as errors, which created instability in the sector," he remarked.
He indicated that the deterioration of regulatory standards was exacerbated by political meddling in market management.
"An effectively reformed electricity sector is governed by an independent regulatory body, not by the Ministry of Power. However, by 2015, the ministry had effectively merged its roles as both the regulator and the operator, leading to the regulator becoming a mere subordinate—a situation that alarmed potential investors," he stated.
Recalling a visit to the ministry in 2016, Dagogo-Jack noted witnessing executives from power companies seeking the attention of political figures rather than liaising with the regulatory authorities.
"Upon entering the ministry, I observed CEOs of electricity distribution and generation companies waiting to meet with the minister. It was then I realised something was amiss. The regulator ought to be the cornerstone of a market- oriented sector, not political officials," he emphasized.
On the topic of electricity subsidies and the government's intention to share these costs with state and local authorities, he noted that these sub-national governments significantly contribute to the overall debts in the sector.
"Current unpaid electricity bills show that about 30 to 40 percent of the debt is owed by various governmental bodies. They neglect bill payments while arguing that cutting off services is unfeasible. When it comes to settling debts, they cannot ignore their part in this issue," he asserted.
Dagogo-Jack defended the federal government's choice to maintain a 40 percent ownership stake in power assets throughout the privatisation phase, explaining this aligns with standard international practices.
"Exiting completely at the onset is not practical. The government maintains some equity to facilitate the reform process and later embraces a more democratic ownership model through the stock exchange. This approach has beneficial implications," he added.
Nevertheless, he criticized Nigeria's subsidy framework, which he argued promotes inefficiency and encourages power theft.
"Our current subsidies support electricity theft and maintain aging substations that have never been serviced. This subsidy model is flawed," he remarked.
He proposed the idea of cross-subsidisation as a solution.
"Subsidies should be structured to ensure those who can afford to pay more—industries and high-end consumers—contribute sufficiently to protect the less fortunate. This method is practiced globally," he suggested.
When discussing the challenges of grid failures and declining infrastructure, Dagogo-Jack insisted these issues stemmed not from insurmountable technical difficulties but from a deficit in leadership.
"If the President were to prioritize stabilising the grid to prevent collapses—not focusing on increasing capacity, but merely maintaining what we have—you would witness the emergence of a clear technical and financial strategy. It is feasible," he stated.
He dismissed the notion of vandalism as a valid excuse frequently used to divert attention from the real issues at play.
"Vandalism has become a convenient justification in Nigeria. The telecom sector faces similar threats yet operates effectively. The reality is that the system is dysfunctional and perpetually seeks excuses," he remarked.
In conclusion, Dagogo-Jack stressed that without proactive leadership and accountability, the power sector will continue to be ensnared in turmoil.
"The sector demands someone willing to take ownership of these challenges, rather than merely discussing them. There is a significant distinction between political opportunity and national responsibility. Until someone fully embraces this role, the situation will persist," he concluded.
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