March 11, 2022/Coronation Research

The absence of constant power supply has contributed to the slowdown of Nigeria’s much needed industrial take-off. For businesses, self-generation places pressure on operating expenses. Household wallets are also significantly affected by the same expense. According to the Nigerian Electricity Regulatory Commission (NERC) data, the average available generation capacity in Q3 ’21 was 5,301.32 MW.

This implies an increase of 9.5% compared with 4,843.57 MW recorded in Q2 ’21. However, actual generation was limited to an average of 3,936.64 MW, which is a decline of 3.4% q/q from an average of 4,076.89 MW recorded in Q2 ’21.

According to The Transmission Company of Nigeria (TCN), the persistent low generation can be attributed to a combination of issues ranging from gas constraints as well as fault and technical problems within generating plants.

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