Electricity Exports: Nigeria's Power Reach

how many countries does nigeria supply electricity

Nigeria has 23 power-generating plants connected to its national grid, with the capacity to generate 11,165.4 MW of electricity. However, the country has been unable to meet the basic household and industrial needs of its citizens, with a low per capita consumption of electricity. In 2012, Nigeria distributed 5,000 MW, far less than the 40,000 MW required to meet the basic needs of its population. Nigeria has contracts with neighbouring countries to deliver energy, including Niger, Togo, and Benin. Despite having a surplus of gas, Nigeria has struggled to distribute power due to infrastructural and financial constraints.

Characteristics Values
Number of countries Nigeria supplies electricity to 3 or 4 (Togo, Benin, Niger Republic, and possibly Ghana)
Total population of Nigeria 195 million
Electricity access in Nigeria 61.6% as of 2019
Number of people in Nigeria without power supply 77 million
Number of power-generating plants in Nigeria 23
Capacity of power-generating plants in Nigeria 11,165.4 MW or 12,522 MW
Electricity generated by power-generating plants in Nigeria in 2012 5,000 MW
Electricity needed to sustain the basic needs of the population 40,000 MW
Electricity generated by purchased generating sets in 2008 6,000 MW
Number of electricity distribution companies (DISCOs) privatized in 2013 11
Number of generating companies (GENCOs) privatized in 2013 6
Ownership of the Transmission Company of Nigeria (TCN) 100% owned by the Nigerian government
Investment needed in the Nigerian power sector over the next 20 years to maintain current service $100 billion
Amount of credit provided by the World Bank for the Nigerian Electricity Transmission Access Project (NETAP) $486 million
Amount of additional investment in Nigeria's power sector by the African Development Bank $200 million
Amount of additional loan provided by the World Bank for Nigeria's power sector in 2020 $750 million
Amount of loan provided by the World Bank for Nigeria to develop mini-grids and solar home systems in 2019 $550 million

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Nigeria's electricity exports to other countries

Nigeria has 23 power-generating plants connected to its national grid, with the capacity to generate 11,165.4 MW of electricity. However, the country has been unable to meet the basic household and industrial needs of its citizens, with a deficit of around 35,000 MW in 2012. This has resulted in power cuts and a low per capita consumption of electricity.

Despite its domestic electricity deficit, Nigeria has been exporting electricity to some of its neighbouring countries. In May 2024, the Nigerian Electricity Regulatory Commission (NERC) ordered a cutback on electricity exports to boost domestic supply. This decision was made due to the priority given to export supply over domestic customers, as well as the inability of some international customers to settle debts on time. Nigeria has bilateral contracts with neighbouring countries such as Niger, Togo, and Benin, and its power firms have also signed contracts with big domestic users like industries and government departments.

The managing director of the Nigerian Bulk Electricity Trading (NBET), Nnaemeka Ewelukwa, stated that the exportation of electricity brings financial gain and is done for strategic reasons. One such reason is the damming of rivers that Nigeria uses for hydroelectricity, which could create a crisis if upstream countries were to build their dams.

There are conflicting claims about whether Nigeria supplies electricity to Ghana. While some sources and beliefs hold that Ghana receives stable electricity from Nigeria, others, including the managing director of NBET, claim that Ghana only purchases gas from Nigeria and converts it into electricity.

The electricity sector in Nigeria is made up of generation companies (GenCos), Independent Power Producers (IPPs), and stations under the National Integrated Power Project (NIPP). The Transmission Company of Nigeria (TCN) manages the electricity transmission network and is currently fully owned and operated by the government.

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Nigeria's power exports to neighbouring African countries

Nigeria has 23 power-generating plants connected to its national grid with the capacity to generate 11,165.4 MW of electricity. However, the country has been unable to meet the basic household and industrial needs of its citizens. As of 2019, about 77 million people in Nigeria lacked electricity access, and power cuts are common in the country.

Despite its power deficit, Nigeria has power export contracts with some of its neighbouring countries. In May 2024, the Nigerian Electricity Regulatory Commission (NERC) issued a directive to cut back supplies to overseas customers to boost domestic supply. This was because the supply to international customers under bilateral contracts took priority over the supply to domestic customers. The regulator placed a cap of 6% on the total available grid generation to international off-takers for the next six months.

Nigeria has bilateral contracts with neighbouring countries such as Niger, Togo, and Benin. These power export contracts bring in foreign currency to support revenue from sub-economic tariffs. However, Nigerian power companies have faced challenges with these contracts, as some international customers have not paid their bills on time. As of the last quarter of 2023, international customers owed Nigerian power companies a combined $12.02 million in unpaid debts.

There is also a belief among Nigerians that the country supplies stable electricity to Ghana, in addition to Togo, Benin, and the Niger Republic. However, this claim has been disputed, with sources stating that Ghana only purchases gas from Nigeria, which it then converts into electricity.

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Nigeria's power exports to Niger, Togo and Benin

Nigeria exports electricity to Niger, Benin, and Togo under a country-to-country arrangement. In 2022, Nigeria exported $153 million worth of electricity, making it the 53rd largest exporter of electricity in the world. The main destinations for these electricity exports were Niger ($64.3 million), Benin ($63.7 million), and Togo ($24.9 million).

Despite the continued exportation of electricity to these neighbouring countries, there is a simultaneous shortage in the national supply within Nigeria. The Transmission Company of Nigeria (TCN) has defended these exports, stating that they provide an opportunity to earn more foreign exchange for national development. TCN has also deployed high-technology schemes, such as the Internet of Things (IoT) and Virtual Private Network (VPN), to improve the stability of the national grid.

The Convener of the Nigerian Power Consumers Forum (NPCF), Micheal Okoh, emphasized the importance of critical power transmission grid investments, backed by matching strengths at the DisCos' end, to address the concerns of power consumers in Nigeria. Okoh also highlighted that similar stop-gap solutions have been successfully implemented in other countries, such as the Benin Republic.

As Nigeria prepares to participate in the Regional Electricity Market (REM) of the West African Power Pool (WAPP), it is expected that Nigerian power operators will further engage in electricity exports, contributing to the development of the country's economy and supporting its neighbouring countries' energy needs.

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Nigeria's electricity supply to its own citizens

Nigeria has a history of struggling to provide adequate electricity supply to its citizens. The country has 23 power-generating plants connected to the national grid with a total installed capacity of 11,165.4 MW to 12,522 MW of electricity. However, this is significantly less than what is needed to meet basic household and industrial needs, which is estimated to be 40,000 MW. This deficit has led to a low per capita consumption of electricity, with many households and businesses resorting to purchasing generating sets to power their properties.

The electricity sector in Nigeria is made up of generation companies (GenCos), Independent Power Producers (IPPs), and stations under the National Integrated Power Project (NIPP). The primary source of electricity generation in Nigeria is fossil fuels, especially gas, which accounts for 86% of the capacity. The remaining electricity is generated from hydropower sources. The Transmission Company of Nigeria (TCN) manages the electricity transmission network in the country and is currently fully owned and operated by the government.

Nigeria has been working to improve its electricity distribution sector. In 2021, the World Bank approved $500 million to support the government of Nigeria in these efforts. The Nigeria Distribution Sector Recovery Program (DISREP) aims to improve service quality and the financial and technical performance of distribution companies. This includes providing financing based on performance and the reduction of losses, as well as ensuring that distribution companies make necessary investments to rehabilitate networks and install electric meters.

Despite these efforts, Nigeria continues to face challenges in providing reliable power to its citizens. Vandalism of equipment, lack of proper maintenance, poor management, and corruption have contributed to suboptimal electricity production and distribution. Additionally, the COVID-19 pandemic has reversed some of the progress made in recent years, with the number of people without access to electricity in sub-Saharan Africa, including Nigeria, increasing in 2020.

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Nigeria's electricity generation capacity

Nigeria has 23 power-generating plants connected to the national grid with the capacity to generate 11,165.4 MW of electricity. However, the country has a chronic electricity shortage, with only a third of its electricity infrastructure reaching consumers. This is due to an aging transmission grid that covers only half of the nation.

The electricity sector in Nigeria generates, transmits, and distributes electricity that is significantly less than what is needed to meet basic household and industrial needs. In 2012, the industry could only distribute 5,000 MW, far less than the 40,000 MW required to sustain the basic needs of the population. The current electricity generated in Nigeria needs to be improved to meet the demand needs of households and businesses, resulting in a low per capita consumption of electricity. In 2006, per capita consumption was 109 kWh.

Electricity generation in Nigeria began in Lagos in 1886 with the use of generators to provide 60 kW. Between 1886 and 1945, electric power generation was relatively low, with power provided primarily to Lagos and other commercial centers such as mining industries in Jos and Enugu. In 1923, tin miners installed a 2 MW plant on the Kwali River. In 1950, the Legislative Council of Nigeria began moves to integrate the electricity industry, establishing the Electricity Corporation of Nigeria (ECN) with the duties of developing and supplying electricity. The ECN took over the electricity sector activities within the Public Works Department and the generating sets of Native Authorities. In 1951, the firm managed 46 MW of electricity.

In 1961, the ECN completed a 132 kV transmission line linking Lagos to Ibadan via Shagamu. In 1965, this line was extended to Oshogbo, Benin, and Ughelli to form the Western System. In 1962, a statutory organization, the Niger Dams Authority (NDA), was formed to build and maintain dams along the River Niger and Kaduna River. The NDA commissioned a 320 MW hydropower plant at Kainji in 1969, with the power generated sold to ECN. In 1972, the NDA and ECN merged to form the National Electric Power Authority (NEPA). NEPA was the major electricity firm in Nigeria until power sector reforms resulted in the creation of the Power Holding Company of Nigeria (PHCN) and later the privatization of electricity generation and distribution.

In 2022, Nigeria's power grid collapsed twice in one week. However, the country's electricity output has recently surged by 30% after the completion of part of an ongoing overhaul of the country's generation infrastructure. The government secured $1.1 billion from the AfDB in January for the power sector and announced a separate $192 million five-year plan to boost transmission capacity. The government is optimistic that it can surpass 10,000 MW by the end of next year.

Frequently asked questions

Nigeria supplies electricity to at least three countries: Togo, Benin, and the Niger Republic. There is also a belief that Nigeria supplies electricity to Ghana, but this has been refuted.

The managing director of the Nigerian Bulk Electricity Trading (NBET), Nnaemeka Ewelukwa, stated that the exportation of electricity is driven by financial gain and strategic reasons.

Nigeria has a deficit of electricity, with the electricity generated being significantly less than what is needed to meet basic household and industrial needs. The country has 23 power-generating plants connected to the national grid with the capacity to generate 11,165.4 MW of electricity. However, issues such as infrastructural and maintenance problems, vandalism, and poor management have led to suboptimal electricity production and distribution.

The Nigerian government and international organizations are investing in the power sector to improve reliability and supply. For example, the World Bank has approved loans for projects such as the Power Sector Recovery Operation (PSRO) and the development of mini-grids and solar home systems. The African Development Bank is also working with Nigeria on a transmission project.

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