Nigeria Faces Electricity Crisis as 20 More Companies Exit National Grid
In September, the Nigerian Electricity Regulatory Commission reported that 20 companies sought approval to exit the national grid, increasing the total to nearly 60% of industrial electricity consumers generating their own power with 1,045.54MW capacity. Electricity supply to distribution companies dropped from 4,330MW to 3,810MW within a week.
The Federal Government allocated N1.09 trillion in the 2026 Budget for electricity projects, including N416.74 billion for the Ministry of Power. Generation capacity increased to 5,300MW in 2024, aided by the Zungeru Hydropower Plant.
A N4 trillion bond has been approved to clear debts in the sector. The government anticipates $1.2 billion investment from AfDB for energy storage. Challenges include poor revenue collection and access for 85 million citizens, with current generation far below the 20GW demand.
