On Monday’s National Peak Demand Forecast revealed that Nigeria needs a minimum of 19,798MW to achieve energy sufficiency. However, as of Sunday, power generation by Generation Companies (GenCos) was a mere 3,860.3MW, resulting in a significant deficit of 15,938MW.
This shortage has led to ongoing power rationing by Distribution Companies (DisCos) nationwide. Only 16 out of 40 GenCos were contributing to the grid, with Egbin Power completely offline. The leading generators were Azura-Edo IPP (420MW), Kainji Hydro (415MW), and Shiroro Hydro (275.73MW).
The persisting power supply challenges follow a recent systems collapse, even after the Transmission Company of Nigeria (TCN) claimed to have restored power supply across the country. Insufficient gas supply to power generation has exacerbated the situation, with gas producers citing a debt of over $1.3 billion for past supplies.
Despite the government agreeing at the beginning of the year to pay electricity subsidies of N1.6tn in 2024 to the Nigerian Electricity Supply Industry (NESI), only N450 billion was allocated in the budget. In 2022, Nigeria had 29 GenCos, but to enhance power generation, the Nigerian Electricity Regulatory Commission (NERC) licensed 11 new companies, bringing the total connected to the national grid to 40.
Experts argue that Nigeria needs at least 30,000MW to achieve electricity sufficiency, contrasting with the forecasted national peak demand of 19,798MW. Distribution Companies attribute the power rationing to low allocation, apologizing for the inconvenience and assuring efforts to minimize outages.
In response to public dissatisfaction and calls for his resignation, Power Minister Adebayo Adelabu acknowledged the industry’s liquidity challenges, revealing that no payment had been made to gas suppliers for January. He outlined proposed solutions, including settling outstanding debts to gas supply and power generation companies using cash payments and guaranteed debt instruments, with current debts amounting to N1.3 trillion and $1.3 billion legacy debts to GenCos.
Source: Channelstv
