THE Nigerian Government has granted 13 new licenses through the Nigerian Electricity Regulatory Commission (NERC) for the generation, distribution, and trading of off-grid and embedded power.
The new licences were issued in Q3 2023, with a cumulative electricity generation of 40.9 megawatts by the licensees.
Five new off-grid generation licences that would generate 8.81MW were issued, as well as one new licence for embedded generation of 5MW.
Other new licences were issued for various sectors, including Independent Electricity Distribution Network, trading, off-grid generation, embedded generation, and IEDN.
Nigeria generates between 3,500MW and 5,000MW of electricity for its 200 million citizens, a production that has been deemed inadequate for the largest economy in Africa.
On January 15, Nigeria’s power generation reached 4,357.09MW, with peak generation at 4,579.5MW and off-peak at 4,062.98MW, causing widespread blackouts in rural areas.
Nigeria, with 86 million out of its 200 million population lacking access to electricity, was identified as the country with the largest number of people without electricity in June 2023.
The International Energy Agency, International Renewable Energy Agency, the United Nations, and the World Health Organisation report that Nigeria (86 million), the Democratic Republic of the Congo (76 million), and Ethiopia (55 million) have the highest number of people without electricity access.
The Federal Government and power supply operators have been striving to boost electricity output, leading to the privatization of successor generation and distribution companies in November 2013.
The government, through NERC, is enhancing power supply and reducing the number of people without electricity.
The NERC reported that Daybreak Power Solutions Limited has received eight licenses for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo, and Abuja.
The Ekiti Independent Power Project has secured a licence for a gas-fired 5MW embedded power project, while Olokiti Power Distribution Limited has been granted an Independent Electricity Distribution Network licence for operations in Ekiti.
Ember Power Limited secured an electricity trading license, while Island Power Limited secured a license for a 10MW embedded gas-fired power project in Lagos.
Energy Company of Nigeria Limited was granted an Independent Electricity Distribution Network licence to operate in Lagos State.