Nigeria’s Power sector lost over $300 million in first quarter of 2018

The first quarter of 2018 was not favorable for Nigeria’s power sector as it lost over $300 million (N108 billion) due continuous electricity load rejection by distribution companies in the country.

Recent data from the Nigerian Electricity Supply Industry (NESI), showed that the country’s energy sector loses between N1.2 billion  ($3.4 million) to N1.5 billion ($4.2 million) monthly to water, gas and transmission line constraints.

In 2017, industry experts had warned that the continuous electricity load rejection by distribution companies (discos) could worsen existing epileptic power supply and cause more economic loss to the country.

Though it has the capacity to generate about 11,165.40MW, the West African country continues to operate below its capability at 7,000MW because the power sector is plagued with operational issues and vandalism that has caused shortages in various oil and gas pipelines across the country. The power sector lost an estimated N1.584 billion in the month of January.

According to the country’s Minister of Power, Works and Housing, Babatunde Fashola, “it is no longer news that we have reached a 7,000MW generation capacity and have a 5000MW Distribution Capacity. However, the country is moving away from theorizing about power to actual provision of efficient power.”

Fashola also noted that the government had secured World Bank’s approval for a $486 million Rural Electrification and Distribution Expansion Funding, to aid the Transmission Company of Nigeria (TCN) in making electricity accessible in the country.

About 80 million Nigerians lack access to electricity stated World Bank.