Training Local Talent: Nigeria’s Power Sector Bets on Tech to Cut Costs

Digital Monitoring in Practice

The technology isn’t particularly exotic. Digital monitoring systems use sensors to track equipment performance in real time, predicting failures before they happen. Duke Energy cut unplanned outages by 36% at its fossil-fuel plants using this approach, whilst Southern California Gas reduced emergency repairs by 35%.

For utilities, the mathematics are compelling. Predictive maintenance can reduce overall maintenance costs by 8-12%, cut breakdowns by up to 45% and extend asset lifecycles by 20-40%. More importantly for Nigerian consumers, it can slash energy costs by up to 30% by preventing the cascading failures that force expensive emergency repairs and prolonged outages.

The spare parts element addresses a chronic problem in Nigeria’s power sector. When transformers or switchgear fail, replacement parts often take months to source, leaving communities without power. A responsive supply chain with predictive ordering could keep critical components in stock before they’re needed. Similar energy infrastructure projects in other regions show how proper planning can drive both efficiency and job creation.

Training Local Talent

The plan also focuses on developing local technical capacity. Nigerian engineers, field technicians and data analysts would take direct ownership of monitoring and maintaining the country’s energy infrastructure. This represents a shift from relying on foreign expertise toward building domestic capabilities in digital asset management.

The training component addresses a practical need. As utilities worldwide adopt predictive maintenance, demand for skilled technicians who understand both electrical systems and data analysis continues to grow. The approach aligns with broader technology adoption strategies that prioritise workforce development alongside technical upgrades.

What This Means for Business

For Nigerian manufacturers, who spent an additional ₦144.5 billion on self-generated electricity in 2020 alone due to grid failures, reliable power could significantly reduce operating costs. The Manufacturers Association of Nigeria has consistently highlighted how unreliable electricity supply undermines industrial competitiveness.

Businesses currently factor frequent outages into their planning, maintaining expensive backup generators and accepting the productivity losses that come with unpredictable power supply. A more reliable power could significantly reduce operating costs. A more reliable grid could allow companies to reduce these contingency costs whilst improving operational efficiency.

The approach also offers more predictable billing. Rather than facing sudden tariff increases to fund new generation projects, businesses might see costs stabilise as existing infrastructure operates more efficiently. Unlike the broader challenges facing global energy companies retreating from green promises, Nigeria’s focus on efficiency addresses immediate operational needs.

Moving Forward

Industry stakeholders can engage with the project leadership at the Annual Asset Management Conference 2025 in Abuja, co-hosted by PE Energy and Thomassen Energy BV. The event offers a platform for discussing practical implementation details with project leaders.

The focus on asset management rather than capacity expansion represents a practical shift in thinking about Nigeria’s power costs. Instead of building new plants whilst existing infrastructure underperforms, the emphasis moves to making current systems work properly through better monitoring, maintenance and spare parts management.

Success will ultimately depend on execution rather than promises. Nigeria’s power sector has seen numerous reform announcements over the years. What matters now is whether digital monitoring and predictive maintenance can deliver the reliability and cost reductions that businesses and consumers desperately need.