Nigeria’s Power Generation Reaches 3-Year High of 5,313MW, Amidst Distribution Challenges

Nigeria’s power generation surged to a three-year peak of 5,313 megawatts on Monday, as announced by the Federal Ministry of Power.

This milestone, declared in a statement by Bolaji Tunji, the media aide to the Minister of Power, underscores the need for electricity distribution companies (Discos) to effectively manage the increased supply to prevent grid instability.

Minister of Power, Adebayo Adelabu, emphasized the importance of Discos absorbing the generated energy to avoid grid collapse, urging them to increase energy uptake.

He also highlighted plans to encourage industries to purchase bulk energy to alleviate distribution pressures.

Despite this progress, a senior official from one of the Discos, speaking anonymously, revealed challenges in managing the extra power due to unprofitable tariffs on bands other than Band A, leading to operational losses. The official pointed out that while power generation has increased, improvements in tariff structures and meter distribution are needed to sustain the supply chain.

Additionally, the Federal Government signed a Memorandum of Understanding with China’s Mutual Commitment Company Limited to assemble electric tricycles and establish a renewable energy training center. This agreement, facilitated by the Rural Electrification Agency (REA), aligns with Nigeria’s vision to expand renewable energy access and reduce reliance on centralized power systems.

Minister Adelabu, speaking at the MoU signing in Beijing, emphasized the significance of this partnership in advancing Nigeria’s energy sector and job creation efforts, particularly in rural areas. He highlighted the need for Nigeria to transition to cleaner, sustainable energy sources and increase the country’s electrification rate, which currently stands at 62 percent, lagging behind several North African nations.

The REA’s Managing Director, Abba Aliyu, expressed confidence in the initiative’s potential to build local capacity, create jobs, and drive economic growth, marking a crucial step towards achieving the administration’s energy and economic goals.