Nigeria's Power Sector Faces Crisis Amid Frequent Blackouts

The Nigerian electricity sector is grappling with severe challenges, as businesses in Abuja and across the country face rising costs due to frequent blackouts. The National Electricity Regulatory Commission (NERC) reported that the Plant Availability Factor for grid-connected power plants fell to 31% by April 2026, with only 10 out of 28 plants contributing 81% of total output.

The grid's operational stability is further compromised, with frequency fluctuations outside the prescribed range of 49.75Hz to 50.25Hz. Transmission losses remain above the approved benchmark of 7%, with the national average at 7.05%.

NERC documented at least 222 grid collapses from 2010 to 2022, with nine occurrences in 2024 alone. The first collapse of 2026 occurred on January 23, plunging major cities like Lagos and Kaduna into darkness.

The ongoing issues in Nigeria's power sector are not just household inconveniences but are significantly affecting production costs, pricing, and investment decisions across various sectors.