The energy sector is currently a study in contrasts: while the downstream petroleum sector is seeing a massive win through domestic refining, the power sector is still fighting an internal war against “energy theft” that threatens to undo infrastructure gains.
The Dangote Petroleum Refinery has officially entered the aviation fuel market, and the ripple effects are already being felt across the industry.
As of April 30, 2024, the refinery fixed its gantry price for Jet A1 at ₦1,820 per litre. This is a significant drop compared to the ₦2,230 per litre that marketers were previously charging. By publishing these prices daily, the refinery is effectively
“squeezing” middlemen who were accused of creating artificial hikes.
The Airline Operators of Nigeria (AON) have hailed this as a lifeline. Fuel costs typically account for 30–40% of an airline’s operating expenses; this stabilization is expected to prevent further route suspensions and could eventually lead to more stable airfares for passengers.
While fuel is stabilizing, the electricity grid remains fragile due to what experts call a “silent cancer.”
The Nigerian Electricity Regulatory Commission (NERC) estimates that 40–55% of electricity generated is never paid for. This isn’t just due to technical faults; it’s primarily energy theft (meter bypass, tampering, and illegal connections).
In the first week of May, NERC issued a new Standard Operating Procedure (SOP). DisCos are now mandated to use data analytics to flag “anomalies” in consumption (e.g., a large factory showing the consumption of a small house).
They will Conduct integrity tests on meters with mandatory video/photographic evidence and publicly prosecute “big fish” offenders—including hotels and government offices—rather than just disconnecting residential “small-scale” by passers.
Energy theft directly leads to grid instability. When thousands of illegal connections draw power without regulation, it causes localized transformer blowouts and contributes to the frequent “national grid collapses” that Joseph Tegbe (the new Minister of Power) has been tasked to solve.
