Nigeria has exported a substantial N181.62 billion worth of electricity to neighboring countries, including Togo, Benin, and Niger Republic, from January to September 2024, according to the National Bureau of Statistics (NBS).
A breakdown of the export figures reveals that N58.65 billion worth of electricity was exported in the first quarter, followed by N63.28 billion in the second quarter, and N59.69 billion in the third quarter.
Interestingly, this surge in electricity exports occurred despite the Nigerian Electricity Regulatory Commission (NERC) imposing restrictions in May 2024 to prioritize domestic electricity needs. This limited power exports to six percent of total grid electricity at any given time.
As stated in NERC’s April 29, 2024, order titled “Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters,” the restriction was intended to last for an initial six months, subject to review. The directive, signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, became effective on May 1, 2024.
According to NERC, prioritizing electricity exports over domestic distribution had disrupted the ability of Distribution Companies (Discos) to deliver reliable services under the Service Based Tariff (SBT) framework. The commission criticized the system operator’s reliance on limiting Discos’ load allocation as a means of managing recurring grid imbalances while favoring exports and Eligible Customers (ECs).
As NERC put it, “The practice so far adopted by the operator in managing generation availability has caused significant hardship to Discos’ customers, comprising industrial, commercial, and residential users, especially during peak demands while prioritising delivery to other bilateral contracts, including exports to international customers.”
The commission highlighted inefficiencies in the terms of international and bilateral contracts with Generation Companies (Gencos). These agreements often fall below the industry’s minimum contract standards, further complicating the equitable distribution of power within Nigeria.
