Nigeria exported electricity worth ₦181.62 billion in the first nine months of 2024. This comes despite growing concerns over the country’s unstable power supply and complaints from Nigerians about frequent blackouts.
Data from the National Bureau of Statistics (NBS) shows that ₦58.65 billion was earned in the first quarter, ₦63.28 billion in the second quarter, and ₦59.69 billion in the third quarter.
The electricity was exported to neighboring countries, including Togo, Benin, and Niger Republic.
The figures have raised eyebrows, as Nigerians grapple with unreliable power, even during peak demand periods.
In May 2024, the Nigerian Electricity Regulatory Commission (NERC) imposed a cap on power exports.
The regulatory agency said that power deliveries to neighboring countries must not exceed six percent of the total grid electricity.
This order, effective from May 1, 2024, was meant to prioritize local electricity needs over international contracts.
The directive was contained in a document titled: “Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters.”
The document was signed by NERC’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.
The order was designed to last for six months before being reviewed.
NERC expressed concerns that power exports were negatively affecting Nigeria’s electricity distribution companies (Discos).
“The practice of prioritizing international off-takers and Eligible Customers is neither efficient nor equitable,” the commission said.
NERC accused the system operator of limiting electricity allocated to Discos to accommodate exports.
This, it said, had caused “significant hardship” for local consumers, including industrial, commercial, and residential users.
A Lagos-based business owner, Mrs. Ajoke Adewale, criticized the government for prioritizing exports over Nigerians.
“Why are we exporting electricity when we cannot even power our homes and businesses?” she asked angrily.
Similarly, a resident of Abuja, Ibrahim Yusuf, shared his frustration.
“We pay high tariffs, yet we barely get electricity. Meanwhile, other countries enjoy power generated in Nigeria,” he lamented.
NERC also faulted the terms of the international contracts with Generation Companies (Gencos).
It said the agreements were based on “best-endeavor” terms and lacked industry-standard requirements.
These loose agreements, the commission argued, undermined the effectiveness of Nigeria’s Service-Based Tariff (SBT).
The tariff was introduced to ensure that consumers received value for the electricity they paid for.
However, the frequent blackouts have left many Nigerians questioning the system’s fairness.
Power distribution companies have also struggled to meet their revenue targets.
The situation has become more dire as peak demand periods often result in grid imbalances.
NERC noted that the system operator’s approach to managing grid imbalances was flawed.
The operator prioritized exports and bilateral contracts, leaving local consumers with insufficient power.
Experts have also criticized Nigeria’s energy management strategy.
