Power shortages remain a primary challenge for businesses as well as households across Nigeria.

Power for all; much work to do


Power shortages remain a primary challenge for businesses as well as households across Nigeria. The cost of self-generation continues to erode household pockets and weighs heavily on operational costs for businesses. The Transmission Company of Nigeria (TCN) has recently estimated generation capability as high as 7,000 megawatts (MW). However, we understand from industry sources that the national energy wheeling capacity through the transmission grid is limited to a maximum of 6,000MW, which clearly dilutes the impact of the headline.


  • The TCN has been able to secure US$1.55bn in funding from multilateral donor agencies. This should assist with building transmission capacity. Over the next four years, the FGN targets a wheeling capacity of 20,000MW from the transmission grid.


  • Gas constraints also contribute to the epileptic power supply. Data from Nigerian Electricity Supply Industry (NESI) show that on one day in mid-October only 1,360MW were generated. The reported gas constraint was 410MW while management constraints resulted in a further loss of 1,994MW. The industry lost N1bn in consequence.


  • There has been some traction in ramping up alternative sources of energy. Power generation from the three hydropower generation companies (Kainji, Jebba and Shiroro) now account for 26% of Nigeria’s daily power generation.

Power shortages remain a primary challenge for businesses as well as households across Nigeria.

    • Given the frequency of attacks on gas pipelines and assets last year, the FGN’s steps towards diversifying the country’s energy sources are laudable. We note that the FGN targets 30% of national energy to come from renewables by 2030.


    • The potential impact on industrialisation in Nigeria of increased and steady power supplies is immeasurable. The onus is on the FGN to attract private capital towards infrastructural financing to explore the renewable energy segment so as to accelerate the process of attaining power for all.

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Ezeadichie Onyeka Michael is the Co-Founder of Haelsoft, a Professional Services Company in Nigeria that provides Information and Technology Services for small and big size companies in Nigeria(Africa). He is an Entrepreneur and Venture Capitalist with Expertise in Web Technology and Digital Marketing. He has developed & Implemented Digital Marketing Strategies(Campaigns) for top brands across sectors in Finance, Telecommunication, Ecommerce who operate in the African market. His professional experience includes key roles at Google Business Group(Nigeria), Google Women on the Web (Nigeria), Edubridge Consultant and Wild Fusion where he has trained over 500 Entrepreneurs on how to use various Web Technology products to succeed online. Customer centricity, User Experience, Conversion optimization are 3 pronged framework he applies around the often-frenetic world of web analytics to ensure that clients stay competitive in the market. He believes that investing in talent is the key to long term success for brands across Nigeria (Africa).

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