Nigeria’s electricity crisis has deepened as about 58 per cent of publicly funded dam projects intended to support power generation remain stalled or abandoned, despite hundreds of millions of naira already disbursed.
Hydropower currently accounts for roughly 30.1 per cent of Nigeria’s electricity supply, making it the country’s second-largest energy source after thermal generation, yet the sector continues to struggle with incomplete projects and inadequate maintenance.
A report by Tracka, a civic monitoring platform run by BudgIT, revealed that it tracked 16 dam projects across 13 states with total disbursements of about N432 million.
Of these, 25 per cent were abandoned outright, while 37.5 per cent had not commenced despite receiving funding, leaving only a small number showing meaningful progress.
The report highlighted cases such as the Gwarangah Dam in Bauchi State, allocated N5 million but recording disbursements of N109.9 million despite being abandoned.
Similarly, the Earth Dam in Benue received N43.5 million from a N100 million allocation but remains deserted, while the Monkin Earth Dam in Taraba got N49.8 million before being abandoned.
Nigeria’s fragile power infrastructure has compounded the problem. The national grid collapsed 12 times in 2024, causing economic losses estimated by the World Bank at about $29 billion annually—roughly 10 per cent of the country’s projected 2025 GDP.
The instability has persisted into 2026, with the grid reportedly crumbling twice within four days as of Jan. 27, plunging millions into darkness.
Several distribution companies in major cities, including Lagos, Port Harcourt, Kano and Enugu, also recorded zero-megawatt allocations during the disruptions.
The economic toll has been significant. Manufacturers spent N238.31 billion on alternative energy in the first half of 2024 alone, while small and medium enterprises in Lagos are estimated to spend about N5.3 trillion annually on diesel generators. Energy expenses now account for up to 40 per cent of operating costs for many businesses.
The consequences have rippled through the industrial sector, with 767 manufacturing firms shutting down in 2023 and about 18,000 jobs lost, while hundreds of others became financially distressed amid rising energy costs.
Analysts attribute the crisis to chronic underinvestment in both thermal and hydroelectric infrastructure, warning that without improved project execution and accountability, Nigeria’s ambition for rapid economic growth could remain elusive.
