As part of its efforts to enhance Nigeria’s power production, the Federal Government issued 95 licences, permits, and registration certificates for generating a total of 989.42 megawatts (MW) of electricity in 2023.
The move, executed by the Nigerian Electricity Regulatory Commission (NERC), is aimed at shoring up the country’s electricity supply.
An analysis of the latest industry figures revealed that regulatory approvals were granted to various investors throughout the year.
Currently, Nigeria generates between 4,000 and 5,000 MW of electricity, with an ambitious target of reaching 6,000 MW by December 2024. As of 6 am on Friday, the national grid recorded a power generation of 4,096.02 MW.
In the first quarter of 2023, NERC issued 12 licences and permits and approved four mini-grid registrations, enabling the production of 723 MW of electricity.
The second quarter saw the issuance of 13 permits for generating 20.06 MW. The third quarter followed with 18 licences and permits for generating 43.18 MW.
In the fourth quarter, a significant increase occurred, with 48 licences, permits, and registration certificates issued for generating 203.18 MW of electricity.
Providing a detailed breakdown, NERC highlighted the issuance of two new generation licences with a combined capacity of 723 MW in the first quarter. Additionally, five captive power generation permits, five permits, and four registrations for mini-grids were approved.
In the second quarter, the regulator issued three new captive power generation permits with an aggregate capacity of 20.06 MW and 10 mini-grid permits.
The third quarter we featured five new off-grid generation licences (8.81 MW) and three amendments (10.50 MW) of existing licences.
Moreover, NERC issued one new (5 MW) and one renewal (10 MW) licence for embedded generation, along with three captive generation permits (7.07 MW) and five mini-grid permits (1.8 MW).
During the fourth quarter, NERC issued two new off-grid generation licences with a gross capacity of 7.5 MW, two new embedded generation licences with a gross capacity of 40 MW, a renewal of one embedded generation licence (20 MW), four captive generation permits (gross capacity – 131.78 MW), eight mini-grid permits (gross capacity – 2.5 MW), and 31 mini-grid registration certificates (gross capacity – 1.4 MW).
Commenting on the development, the Minister of Power, Adebayo Adelabu, announced ongoing investments in new power plants.
Speaking at an energy conference in Lagos, Adelabu highlighted the government’s commitment to enhancing current generating assets and investing in new power plants, leveraging the country’s diverse natural resources, including hydro and solar power.
The minister also mentioned the recent addition of 700 MW from the newly commissioned Zungeru Hydropower Plant to the national grid.
”Furthermore, the government has secured presidential approval to settle legacy debts to gas companies, ensuring efficient gas supply to the power sector and addressing generation companies’ debts for necessary maintenance and capacity optimization,” he added.
Adelabu emphasized that the government’s focus extends beyond merely increasing generation capacity to improving the efficiency and reliability of power supply.
”The ongoing efforts under the Presidential Power Initiative aim to expand the transmission grid to accommodate the increased load from new electricity generation sources, ensuring a more stable and reliable power supply for Nigeria,” he stated.
