Nigeria Economic Update, Issue 50

The Electricity on Demand report by the Nigerian Electricity Regulatory Commission (NERC) revealed that in the third quarter of 2024, energy generation stood at 9,450.76 GWh, marking a 674.21 GWh increase from the 8,776.55 GWh recorded in the previous quarter. Average hourly energy generation also rose by 6.51% quarter-on-quarter, from 4,018.57 MWh in Q2 2024 to 4,280.24 MWh/h. This increase in energy generation was driven by enhanced generation capacity. The average generation capacity of nineteen out of the twenty-eight grid-connected power plants grew by 16.04%, rising from 4,395.77 MW in Q2 2024 to 5,100.90 MW in the quarter under review. This growth is expected to result in improved energy supply, as higher generation capacity can reduce power outages, enhance energy reliability for businesses and households, and promote better utilization of existing infrastructure. It can also stimulate economic growth and foster job creation in related sectors such as construction, manufacturing, and services. In response, the government should review existing laws with a view of amending those that deter private sector participation in the energy sector to boost generation and modernization of the distribution systems. Also, the government need to invest in upgrading and expanding transmission networks to ensure a more reliable electricity supply. Additionally, there is a need to invest in renewable energy projects that promote hybrid (solar, wind, and hydro) energy solutions in grid-connected plants.

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