Nigeria’s available power generation capacity has decreased by 2,324 megawatts (MW) due to various factors, including deteriorating plant capacities, poor maintenance, liquidity challenges, and other issues. The Nigerian Electricity Regulatory Commission (NERC) reported that while the country’s installed power generation capacity marginally increased, the available power capacity dropped significantly between 2015 and 2022.
In 2015, Nigeria’s available power capacity was 6,401 MW, but it decreased to 4,059 MW in 2022. This decline is attributed to several factors, including deteriorating plant capacities, poor maintenance due to liquidity challenges, difficulties accessing foreign exchange (forex), non-binding contracts, delayed payments, and stringent regulatory measures against incorrect declarations. The Gbarain National Integrated Power Project, which has been out of operation, also contributed to the reduction in available capacity.
Despite the increase in installed capacity and the growth of power plants connected to the grid, electricity consumers in Nigeria have criticized the 9.42% rise in average power generation over seven years as insufficient. They argue that the demand for electricity far exceeds the power generated during the period reviewed by NERC and that the growth rate is too low to meet the country’s energy needs.
The power sector in Nigeria continues to face numerous challenges, including inadequate generation capacity, distribution losses, and issues related to revenue collection and tariff structures. Addressing these challenges is crucial for improving the country’s electricity supply and meeting the needs of its population.