Nigeria’s Power Sector Reforms Stumble as Telecom Industry Records Unprecedented Success
Story written by Uzuh Rita September 1,2025
Nigeria’s push for reforms in the power sector has consistently failed to deliver stable electricity, in sharp contrast to the remarkable achievements recorded in the country’s telecommunications industry.
Over two decades after both sectors were liberalized, Nigerians continue to grapple with unreliable power supply, frequent blackouts, and high tariffs, while the telecom industry has emerged as one of the country’s most successful reform stories.
The 2001 power sector reform, designed to dismantle the monopoly of the National Electric Power Authority (NEPA) and attract private investment, has struggled due to poor infrastructure, policy inconsistencies, weak regulation, and corruption. Despite multiple interventions, electricity generation has remained below 5,000 megawatts for a nation of over 200 million people.
In contrast, telecom reforms launched around the same period have transformed communication and digital services in Nigeria. From fewer than half a million active phone lines in 2001, the sector has grown to over 200 million active lines today, driving innovation, job creation, and financial inclusion.
Experts attribute the telecom sector’s success to transparent licensing processes, strong regulation by the Nigerian Communications Commission (NCC), and heavy foreign and local investments. Meanwhile, the power sector has remained plagued by inefficiencies, poor governance, and limited investor confidence.
Industry analysts warn that unless urgent reforms are implemented in the power sector—particularly in transmission and distribution—the dream of stable electricity may remain elusive. They argue that Nigeria’s economic growth and industrialization are at risk without reliable power, despite the gains of the telecom revolution
