Nigeria's Power Sector Struggles as Plants Operate Below Capacity, NERC Reports

The Nigerian Electricity Regulatory Commission (NERC) released figures indicating that Nigeria's power plants are generating far below their installed capacity. With a combined installed capacity of 13,625 megawatts, the plants only generated an average of 4,421 megawatts in January 2026.

This low output is attributed to operational challenges such as infrastructure deficiencies, equipment maintenance issues, and transmission constraints. The underperformance of major power plants, including Nigeria's largest thermal plant, has led to significant electricity supply disruptions, forcing businesses and households to rely heavily on diesel generators.

The weak power generation has resulted in substantial economic losses, with the World Bank estimating an annual loss of $29 billion due to poor electricity supply. Despite efforts to address the power crisis, challenges related to financing, gas supply, and transmission infrastructure persist.

President Bola Tinubu's administration aims to increase power generation to 10,000 megawatts by 2025, but achieving this target remains challenging given the current utilization levels and unresolved sector issues.