Lawyer and public affairs analyst Douglas Ogbankwa has called for the liberalisation of electricity distribution in Nigeria, arguing that the existing distribution model has left consumers with limited choices and exposed them to persistent power supply challenges.
Ogbankwa made the call in an opinion article titled “Time to Liberalise Power Distribution in Nigeria,” in which he criticised the performance of electricity distribution companies, particularly the Benin Electricity Distribution Company (BEDC), amid reported power supply challenges affecting Edo, Delta, Ondo and Ekiti states.
He argued that the concentration of electricity distribution within designated franchise areas prevents consumers from switching providers when service delivery is unsatisfactory, unlike the telecommunications industry, where competition allows customers to choose among multiple operators.
According to him, the current arrangement has contributed to poor service delivery, estimated billing, inadequate metering and insufficient investment in electricity distribution infrastructure.
Ogbankwa also questioned aspects of the 2013 electricity privatisation process, arguing that the transfer of distribution assets to private operators had not delivered the level of infrastructure development and reliable electricity supply Nigerians expected.
He maintained that the Electricity Act 2023 provides an opportunity to restructure the sector by enabling state governments to establish electricity markets and participate more actively in electricity generation, transmission and distribution, subject to the applicable legal and regulatory requirements.
While commending efforts by state governments to develop their electricity markets, the lawyer cautioned against replacing existing distribution monopolies with state-controlled monopolies. He advocated a more competitive system that would allow multiple operators to serve consumers within the same geographical area.
Among his proposals are stronger enforcement of performance obligations for distribution companies, wider access to electricity distribution licences, compulsory metering, improved consumer protection and the establishment of tribunals to address complaints and award compensation where justified.
He also called for community participation in electricity investments, arguing that residents and businesses in affected states should have opportunities to own shares in power companies operating within their communities.
Ogbankwa said unreliable electricity supply continues to affect businesses, students and households, undermining productivity and economic development. He maintained that competition and effective regulation are necessary to improve service delivery and hold electricity providers accountable.
He concluded by urging the federal and state governments to pursue reforms that would give consumers greater choice, strengthen accountability and encourage investment in Nigeria’s electricity distribution sector.
Douglas Ogbankwa is a lawyer, writer, public affairs analyst and founder of the Security Situation Room.
Written by Enitan Mudashiru
