Business News of Sunday, 15 June 2025

Source: www.punchng.com

Discos decry 5,500MW power generation amid huge gas reserves

Electricity Electricity

The Association of Nigerian Electricity Distributors have decried Nigeria’s low power generation despite its enormous gas reserves.

It expressed sadness that Nigeria, a country of over 200 million people, still grapples with 5,500 megawatts while South Africa generates over 50,000 megawatts with its 64 million population.

The Executive Director of Research and Advocacy for ANED, Sunday Oduntan, stated this in a document presented during a retreat organised by the Senate Committee on Power recently in Uyo, Akwa Ibom.

In a document shared with our correspondent, Oduntan said, “It is sad that a country of about 237.5 million people and the sixth largest oil-producing country in the world with a significant gas reserve that can last 100 years; yet the nation is still generating an average of 5,500MW (from two sources).”

Oduntan said that ideally, power generation should be 1,000 megawatts per 1 million people. He stated that South Africa, “which is less endowed and with a population of 64.7 million people, generates an average of 52,000MW (from six sources) with a winter peak demand of about 27,000MW.”

He regretted that the Manbilla, Nigeria’s largest hydropower plant with 3,050MW, was awarded in 1982 at $5.8bn, but the project had no official completion percentage as of last month.

However, he disclosed that Ethiopia started building Africa’s largest dam of 6,450MW in 2010. The project, he said, cost $4.8bn and is currently at 97.6 per cent. The spokesman of the Discos told the Senate committee that Nigeria would remain undeveloped without a stable power supply.

“Without resolving the issue of power, Nigeria will remain underdeveloped, with no major industrial or agricultural development. Many Artisans will remain Okada riders without stable electricity. You, our leaders at the highest level, must articulate and implement clear-cut programmes and policies that can put the nation first. Enough of political statements,” he said.

Oduntan added that the challenges facing the power sector included low access rates, inadequate generation capacity, weak infrastructure, funding challenges, and regulatory gaps. He explained that over 85 million Nigerians (43 per cent of the population) lack access to grid electricity.

Oduntan noted that while the installed capacity is approximately 13,000MW, the actual output is often below 5,000MW due to issues with gas supply, maintenance, transmission, and distribution.

He maintained that ageing infrastructure and poor maintenance had led to frequent outages and high transmission losses.

Aside from these, Oduntan stressed that limited public funding and difficulty attracting private investment also contributed to the power deficit, while inconsistent policies, regulatory uncertainty, and lack of coordination, collaboration and alignment among stakeholders hindered progress.