From January to September 2024, Nigeria exported electricity valued at N181.62bn to neighboring countries, according to data from the National Bureau of Statistics (NBS).
A closer analysis reveals that N58.65bn worth of power was exported in the first quarter, N63.28bn in the second quarter, and N59.69bn in the third quarter. The main recipients were Togo, Benin, and Niger Republic.
This surge in exports occurred despite a directive by the Nigerian Electricity Regulatory Commission (NERC) in May 2024, limiting cross-border electricity supply to a maximum of six percent of total grid power at any given time. The measure was introduced to prioritize the domestic electricity market and improve service delivery.
In an interim order titled “Transmission System Dispatch Operations, Cross-border Supply, and Related Matters”, NERC mandated that exports must align with efforts to address grid imbalances and enhance supply for Nigerian customers. This directive, effective from May 1, 2024, was signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, with an initial six-month implementation period pending review.
The commission highlighted how prioritizing exports and bilateral contracts had negatively impacted Distribution Companies (Discos). NERC noted that this approach compromised Discos’ ability to meet Service-Based Tariff (SBT) obligations, resulting in unreliable power supply for industrial, commercial, and residential consumers, particularly during peak demand periods.
The commission further criticized the reliance on suboptimal grid dispatch practices, including limiting the load allocated to Discos while favoring international and bilateral customers. It also pointed out that the terms of existing international contracts with Generation Companies (Gencos) were inadequate compared to current industry standards, often operating under loose and non-binding agreements.
NERC’s directive aimed to rebalance the priorities of the grid, ensuring a fairer distribution of available electricity while protecting the interests of domestic consumers. A review of the policy’s effectiveness is expected after the initial six-month period.
