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Abbas: Poor power supply hurting small firms, Nigerians

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Speaker of the House of Representatives, Abbas Tajudeen, has warned that poor and costly energy supply is crippling small businesses and worsening the living conditions of Nigerians. He spoke at an investigative hearing organised by the House Committee on Renewable Energy in Abuja.

Abbas said years of persistent electricity problems have created serious economic challenges and made legislative action necessary. He explained that the National Assembly amended the Electricity Act to firmly include renewable energy as part of Nigeria’s power solutions.

He noted that diversifying the country’s energy mix with renewable sources would ease pressure on households and businesses while supporting sustainable growth. One key objective of the Electricity Act 2023, he said, is to provide an integrated policy that recognises all sources of power generation, transmission and distribution, including renewables.

The Speaker highlighted the high cost of running generators for both large manufacturers and small and medium enterprises, saying this has raised production costs and the overall cost of living. He linked these challenges to the decision by Parliament to update the old 2005 electricity law.

Abbas also drew attention to the global push for cleaner and safer energy, warning that the impact of carbon emissions, global warming and climate change is already visible in Nigeria. He argued that a shift to renewable energy is necessary for self preservation and long term development.

He said the House has gone beyond passing laws by creating a dedicated Committee on Renewable Energy to closely monitor how the Electricity Act is implemented in this sector. According to him, making renewable energy a core part of the law shows the firm resolve of lawmakers to drive the transition.

Abbas stressed that Nigeria has many renewable resources and that, with the right technology and funding, they can help close the country’s power gap. He urged investors and other stakeholders to seize emerging opportunities in the sector as government provides policy and legal support.

He recalled that on October 22, 2025, the House directed the Committee on Renewable Energy to investigate how green and renewable energy projects are domiciled across ministries, departments and agencies. The probe is to check compliance with due process, capacity standards and legal mandates, identify mismanaged or misplaced projects and recommend sanctions where necessary.

The committee was also asked to review foreign grants and investments in the renewable energy sector from 2015 to date, as well as how MDAs use renewable power.

Chairman of the Committee, Afam Victor Ogene, said the ongoing investigation into grants and investments has been slowed by the uncooperative attitude of some MDAs involved in investment, procurement and receipt of funds for renewable projects.

Ogene lamented that many solar powered streetlights fail within six months of installation despite their high cost. He questioned whether similar failures are common in Europe and other regions and said the situation raises serious concerns about procurement, maintenance and value for money.

He said fixing these problems is vital to stop economic wastage and support sustainable development. He added that a proposed rule requiring MDAs to get 50 per cent of their power from renewable sources could attract investment, create jobs and strengthen the electricity sector.

Ogene explained that achieving this target will require assessing current renewable use in MDAs, finding gaps and implementing strategies to raise adoption. He said this would help build a more diverse energy mix, reduce dependence on traditional sources and create a more resilient power system.

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