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Nigeria’s power sector lost about N108 billion during the first three months of this year due to several constraints inhibiting the regular supply of electricity in the country.

According to data from the Nigerian Electricity Supply Industry (NESI), the power sector is losing between N1.2 billion to N1.5 billion monthly to water, gas and transmission line constraints.

For example, on January 25, 2018, average power sent was 3,971mw and 2,302.8mw was not generated due to unavailability of gas. About 417mw was not generated due to unavailability of transmission infrastructure, while 290mw was not generated due to high frequency resulting from unavailability of distribution infrastructure.

Therefore, the sector lost an estimated N1.584 billion on January 25, 2018 due to insufficient gas supply, distribution infrastructure, and transmission challenges. The power sector is plagued with structural issues in all key areas- generation, gas supply, transmission and distribution, while the operational capacity of the country’s power plants is less than a third of their installed capacity.

Chronic vandalism has crippled oil and gas pipelines, creating gas shortages at power plants and underinvestment in maintenance and infrastructure has constrained the transmission grid. Minister of Power, Works and Housing, Babatunde Fashola, reiterated that the Federal Government is committed to providing regular and efficient power supply in the country.

He disclosed that the Federal Government had secured the World Bank’s approval for $486 million Transmission Company of Nigeria (TCN) transmission expansion funding, while progress is being made with the same bank for the Rural Electrification and Distribution Expansion Funding.


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