The Federal Government of Nigeria has reported a significant decrease in the country’s available power generation capacity, citing various factors such as deteriorating plant capacities, poor maintenance due to financial challenges, and more.
While the installed power generation capacity saw a marginal increase, the available power capacity dropped by over 2,300 megawatts between 2015 and 2022.
According to the 2022 Electricity Market Competition Report by the Nigerian Electricity Regulatory Commission (NERC), available power capacity declined from 6,401 megawatts in 2015 to 4,059 megawatts in 2022.
During the same period, the installed capacity increased from 12,132 megawatts in 2015 to 13,097 megawatts in 2022, representing a growth of 7.95 percent.
This decline in available capacity can be attributed to several factors, including plant capacity deterioration, maintenance challenges due to financial constraints and forex access, non-binding contracts, delayed payments, and stricter regulatory measures.
It’s worth noting that the Gbarain National Integrated Power Project being out of operation may have also contributed to the reduction in available capacity linked to older plants.
Despite these challenges, the number of operational power generation plants connected to the grid increased, fostering competition within the sector.
As of December 2022, 28 power plants were operational, both privately and government-owned.
Additionally, various regulations allowing distribution companies and large consumers to engage in bilateral contracts have contributed to competition in the power generation sector.
While the daily average generation increased by 9.42 percent in 2022 compared to 2015, some electricity consumers have criticized this growth as being insufficient to meet the growing demand for electricity.
They argue that an average annual growth of about 1.3 percent is inadequate to address the nation’s electricity needs.
