DisCos decry 5,500MW power generation despite vast gas reserves

16 Jun 2025

The Association of Nigerian Electricity Distributors (ANED) has expressed concern over the country’s persistently low power generation output despite having one of the world’s largest gas reserves.

The Executive Director of Research and Advocacy at ANED, Sunday Oduntan, made this known during a recent retreat organised by the Senate Committee on Power in Uyo, Akwa Ibom. In a document presented at the event and shared with journalists, Oduntan described the situation as a national embarrassment, given Nigeria’s population and energy resources.

“It is disheartening that a nation of about 237.5 million people, and the sixth largest oil-producing country globally with gas reserves projected to last 100 years, is still generating an average of just 5,500 megawatts of electricity from two sources,” he said.

Oduntan compared Nigeria’s energy output with that of South Africa, a country with a significantly smaller population but far greater generation capacity. “South Africa, which is less endowed and has a population of 64.7 million people, produces an average of 52,000 megawatts from six sources, with a winter peak demand of approximately 27,000 megawatts,” he noted.

He pointed out that the global benchmark for electricity generation is 1,000 megawatts per one million people, a metric Nigeria falls far short of achieving.

Oduntan also lamented the stagnation of major infrastructure projects, particularly the 3,050MW Mambilla hydropower project. He recalled that the project, which was awarded in 1982 at a cost of $5.8 billion, remains largely incomplete with no official progress figure as of last month.

In contrast, he cited Ethiopia’s Grand Renaissance Dam, which began construction in 2010. The dam, Africa’s largest with a capacity of 6,450MW, was delivered at a cost of $4.8 billion and is now 97.6 per cent complete.

Addressing the Senate Committee, the ANED spokesman stressed that no meaningful development can occur in Nigeria without reliable power. “Without fixing electricity, Nigeria will not experience significant industrial or agricultural growth. Many artisans will continue to ride motorcycles as a means of livelihood due to the absence of steady electricity,” he said.

He urged lawmakers to move beyond rhetoric and prioritise the development of clear and actionable policies that place national interest above politics.

Oduntan also outlined the deep-rooted challenges afflicting Nigeria’s power sector. These include limited access, underwhelming generation capacity, dilapidated infrastructure, inadequate funding, and policy and regulatory shortcomings.

He revealed that over 85 million Nigerians, approximately 43 per cent of the population, still have no access to electricity from the national grid.

While Nigeria’s installed capacity stands at about 13,000 megawatts, actual generation often falls below 5,000 megawatts due to persistent issues such as erratic gas supply, equipment breakdowns, and inefficiencies in transmission and distribution.

Ageing infrastructure and inadequate maintenance, he added, have led to frequent outages and high energy losses during transmission. Furthermore, he stressed that the sector’s financial limitations and the lack of private-sector investment are compounded by inconsistent policies, unclear regulations, and poor alignment among key stakeholders.

“These issues continue to hinder progress. We need coordinated and decisive action to move the sector forward,” Oduntan concluded.

ReplyReply allForwardAdd reaction