Nigeria Utilises Only 41% of Installed Generation Capacity Amid Stranded Power Crisis

Nigeria's power sector is facing a crisis as only 41% of the installed generation capacity is being utilized, according to the latest data from the Nigerian Electricity Regulatory Commission (NERC). This paradox highlights the significant gap between installed capacity and actual output, with several power plants lying idle or underutilized.

The country's power sector continues to grapple with stranded power, leading to chronic shortages nationwide. Despite having a large installed generation capacity, transmission bottlenecks and distribution limitations result in a significant portion of generated electricity remaining idle.

This situation has economic consequences, as every megawatt of capacity left unused represents a lost opportunity and investment. The inefficiency in the power sector also reduces investor confidence and adds pressure on households and businesses already facing rising energy costs.

The sector's fragility is further highlighted by grid stability issues, with grid frequency and voltage deviating from acceptable limits. Overall, Nigeria's power sector struggles to meet the growing demand for electricity, leaving many Nigerians without reliable power supply.