By Yange Ikyaa
Despite Nigeria’s export of electricity worth about N23.13 billion to some neighbouring countries in the year 2022, the country continues to experience widespread blackouts and insufficient energy in many communities.
This export of electricity to the Republics of Benin and Niger, as well as some special categories of consumers has continued, according to information from the Nigerian Electricity Regulatory Commission (NERC), which showed that the total value of exported electricity from Nigeria in 2022 was $50.98 million or N23.5 billion at the official exchange rate of N461 per dollar. However, the international customers remitted only $32.69 million or N15.1 billion, with $18.29 million or N8.4 billion unpaid during the period under review.
On their own part, the special customers also did not remit N792.6 million in the same period, with some NERC officials and other agencies in the power sector giving reasons why Nigeria was exporting power despite its poor supply in-country.
A World Bank report puts the total number of Nigerians that are not connected to the national electricity grid at about 90 million, out of about 220 million Nigerians. This is about the highest in the world.
China, with a population of 1.4 or 1.5 billion people, has about 68 million Chinese persons who are not connected to electricity.
The Managing Director, TCN, Sule Abdulaziz, gave the explanation for electricity export at the Nigerian Power Consumers Forum, saying “Nigeria, through TCN, has been exporting electricity to Niger, Benin and Togo under a country-to-country arrangement.”
The TCN boss, who doubles as the Chairman, Executive Board of the West African Power Pool, had said the regional market would further enable generation companies to export power to more West African countries, which would be evacuated by TCN wheeling infrastructure.
Meanwhile, NERC’s Vice Chairman/Commissioner, Market, Competition and Rates, Musiliu Oseni, has said that only 53% of the available electricity in Nigeria capacity is utilized in the country.
Oseni made the disclosure during his address to participants at the recently held NERC Stakeholder Workshop on Constitutional Amendment and Electricity Act 2023.
“Only 53% of available (electricity) capacity is utilized in Nigeria due to challenges with gas supply, transmission and distribution constraints and commercial challenges.
“When it comes to nurturing the electricity sector, States face important choices that come with implications.
“It is important for them to adopt a collaborative mindset, focus on load growth, prioritize quality improvements, prioritize customer satisfaction and work towards improving liquidity. These considerations are key to supporting the sector’s growth and success,” he said.
Also, according to the Chairman/Chief Executive Officer (CEO) of NERC, Eng. Sanusi Garba, the new Electricity Act has the potential to transform the entire electricity supply industry.
While former President Muhammadu Buhari signed a bill to take electricity off the exclusive list, the Electricity Act 2023 will provide a framework that will guide the post-privatization phase of the Nigerian Electricity Supply Industry (NESI) and encourage private sector investments. President Bola Ahmed Tinubu in June signed Electricity Act 2023 into law shortly after he assumed office.
The Act mandates electricity-generating companies to either generate power from renewable energy sources, purchase power generated from renewable energy or procure any instrument representing renewable energy generation.
It also enables states, companies and individuals to produce, transmit and distribute electricity promoting empowerment in the energy sector.