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Nigeria lost about N154 billion due to poor distribution and transmission infrastructure. The huge loss include lack of gas and water reserve for power installations.

The Advisory Power Team from the office of Professor Yemi Osinbajo, Vice President of Nigeria, revealed that Nigeria’s power sector fell short to meet up to expected standard as it lost N1.87 billion. The Team observed that peak power generation was 4,207.6 megawatts and over 1,700  megawatts of electricity generated due to non-availability of gas to power the Generating Companies (GENCOs) that will in turn send power to other channel of electricity supply chain.

The Power Team disclosed that peak electricity generation crossed the 5,000 megawatts mark in the fourth week of April, as 5,090MW was recorded which was the highest quantum of electricity ever recorded on the national grid since the beginning of 2018.

According to the Team: “Peak generation for May 5, 2018 was 4,207.6MW. Peak generation to date is 5,222MW (18 December 2017). Estimated amount lost to insufficient gas supply, distribution, transmission and water reserves in 2018 is N153,986,000,000.”

The Team stated further that “On May 5, 2018, the average power sent out was 3,468MWh/hour, down by 114.33MWh/h from the previous day; 1,740MW was not generated due to unavailability of gas; 90MW was not generated due to unavailability of transmission infrastructure; while 1,871.5MW was not generated due to high frequency resulting from unavailability of distribution infrastructure.

“A total of 95MW was not generated due to water management. The power sector lost an estimated N1,870,000,000 on May 5, 2018 due to insufficient gas supply, distribution infrastructure, transmission infrastructure and water reserves. The dominant constraint on May 5, 2018 was from unavailability of transmission infrastructure, constraining a total of 1,871MW from being available on the grid.”

However, in a recent meeting between the Minister of Power, Works and Housing, Babatunde Fashola and stakeholders in the GENCOs, it was gathered that on several occasions they complained that gas producers are cutting down supplies to the thermal electricity generating plants as a result of indebtedness to gas companies. The gas suppliers also stated that the GENCOs are not remitting money to them for gas supplied. The GENCOs have also blamed the Distribution Companies that are closer to electricity consumers of short changing them. While this bulk passing last, power continues to drop.

This has impacted negatively on the state of electricity generation across the country. The companies seek assistance from the government to ensure that the huge debt are settled so as to improve power across the country.

It is not clear if the government will heed to the advice since there is a subsisting case in the court in which the GENCOs want money owed for gas supplied and electricity distribution to be paid.

On his part, Fashola has been advocating that investors should make assiduous efforts to improve electricity supply since it has become a private business and government’s minuscule stake is minimal for substantial intervention.


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