The electricity sector in Nigeria is a dynamic and evolving landscape marked by significant achievements and persistent challenges. This comprehensive overview highlights the sector’s critical aspects and future goals. Here are some essential facts about the electricity sector in Nigeria:
- Generation Capacity: Nigeria has 23 power-generating plants connected to the national grid, with a combined capacity of about 11,165.4 MW. However, the actual generation is often much lower due to various operational challenges.
- Demand vs. Supply: The electricity demand in Nigeria far exceeds the supply. In 2022, the market was around 32.1 terawatt hours, but only about 60% of the population had access to electricity.
- Historical Development: Electricity generation in Nigeria began in Lagos in 1886. The sector has evolved significantly since then, with significant developments like the establishment of the Electricity Corporation of Nigeria (ECN) in 1950 and the commissioning of the Kainji Dam in 1969.
- Energy Mix: Nigeria’s electricity generation is primarily from thermal (gas-fired) and hydroelectric sources. The country has significant potential for renewable energy, particularly solar, but this remains largely untapped.
- Consumption Patterns: Residential consumption is the highest, followed by commercial and industrial sectors. In 2022, residential consumption accounted for over 61,400 terajoules of electricity.
- Challenges: The sector faces numerous challenges, including inadequate infrastructure, frequent power outages, and grid collapses. In 2022, the national grid collapsed twice in one week.
- Reforms and Regulation: The Nigerian Electricity Regulatory Commission (NERC) plays a crucial role in regulating the sector, ensuring compliance with standards, and protecting consumer rights.
- Installed Capacity: Nigeria has an installed capacity of 12,522 MW, of which 10,142 MW comes from thermal sources and 2,380 MW from hydro sources.
- Access Rates: According to recent data, about 45% of Nigerians have access to electricity, with urban areas having a higher access rate (55%) than rural areas (36%).
- Privatization: The Nigerian government has privatised its distribution companies (DisCos) to improve efficiency and service delivery.
- Renewable Energy Potential: Nigeria has significant potential for renewable energy, particularly solar power, due to its high solar radiation levels. However, this potential remains largely untapped.
- Investment Needs: The sector requires substantial investment to upgrade infrastructure, expand capacity, and improve reliability. Estimates suggest that billions of dollars are needed to meet these goals.
- Off-Grid Solutions: Due to the unreliable grid supply, many Nigerians rely on off-grid solutions such as diesel generators and solar home systems. These solutions are crucial for providing electricity in remote and underserved areas.
- Economic Impact: The sector’s inefficiencies significantly impact Nigeria’s economy, affecting industries, businesses, and overall economic growth.
- Future Goals: Nigeria aims to achieve universal access to electricity by 2030. This ambitious goal requires significant generation, transmission, and distribution infrastructure improvements.