Major developments in Nigeria’s power sector in 2024 

Nigeria’s Power sector has evolved over the years with improved investments by both the government and private businesses, but it is far from achieving reliable and sustainable energy for all its citizens.

Amidst numerous challenges, the sector recorded notable activities and developments this year, from policy reforms and infrastructure upgrades to increased private sector participation and investments in renewable energy.

It also recorded the highest number of grid collapses in a single year.

As the country strives to bridge its energy gap and power its growing economy, the notable events and developments in the power and utility sector will shape the country’s future as we draw the curtains on 2024 and knock on the new year.

In March 2024, the Federal Government announced the removal of subsidies on electricity mostly for customers on Band A feeders, promising them improved supply.

The government argued that the removal of the electricity subsidy was to improve supply and allow it to pay off its mounting debt in the utility sector.

At the time, the federal government owed electricity-generating companies over a trillion naira while the generating subsector grappled with poor gas supply in power plants.

Various stakeholders in the Power sector had urged the federal government to pay the debts it owed GenCos. In the same vein, the President had promised to address the energy poverty faced by the majority of Nigerians.

In February 2024, Nigeria’s Minister of Power, Adebayo Adelabu, pledged to ensure all households and businesses are properly metered.

Adelabu stated this in Okene, Central senatorial district of Kogi State when he commissioned a 60MVA, 132/33kV power transformer within the Okene Transmission Substation.

The project which was awarded on the 6th of March 2023 under the Presidential Power Initiative was aimed at improving power supply to parts of Kogi, Edo, and Ondo states.

Providing metres to Nigerians helps ensure accountability in electricity billing by distribution companies. With accountable billing comes fairness and efficiency in fee collection.

In May 2024, the Federal Government said it would patronise local manufacturers for electricity equipment.

The Minister of Power, Bayo Adelabu promised that agencies under the Ministry of Power would be encouraged to patronise local manufacturers.

This patronage will boost sales for local manufacturers in the electronics market, and consequently impact the country’s economy positively. This is coming at a time when manufacturers lament about high production cost and poor sales as a result of inflation.

Nigerian Electricity Distribution Companies (DisCos) recorded the sum of  N431.16 billion as revenues from customers in Q2 2024, reflecting a collection efficiency of 79.31%.

Context: According to the quarterly report of the Nigerian Electricity Regulatory Commission (NERC) for the second quarter of 2024, DisCos had a total billing of N543.64 billion.

The 79.31% collection efficiency represents a modest increase of 0.20 percentage points when compared to the previous quarter’s 79.11% efficiency.

The Nigerian government has consistently argued that Nigerians were not willing to bear the cost of constant electricity supply.

An increase in payment collection by DisCos shows that this narrative is changing. It can be said that the current administration’s decision to remove the electricity subsidy and the hike in tariff for customers on Band A feeders contributed to this development.

In August 2024, the Federal Government approved a 50 per cent subsidy for the electricity consumed in hospitals across the country.

This was announced by the Minister of State for Health and Social Welfare, Dr. Tunji Alausa, who noted that the aim was to reduce the running costs for public hospitals and alleviate the impact on patients

The Minister of Power had promised that the Federal Government would subsidise electricity in hospitals and universities, even if they are on Band-A feeders. Hospitals had complained about not being able to afford electricity charges

In August 2024, the Federal Government announced that, in partnership with states, it raised N100bn for the procurement of prepaid electricity meters, as part of the current administration’s Presidential Meter Initiative programme.

Minister of Power, Adebayo Adelabu, who disclosed this in Ibadan, Oyo State, said thousands of metres would be distributed to Nigerians in a bid to close the metre gap in the country