Nigeria Generating far Below its Installed Power Capacity – NERC Releases Figures
- NERC data shows Nigeria’s power plants operated at just 36% availability in January 2026
- Installed capacity of 13,625MW translated into an average generation of about 4,421MW
- Experts say improving existing plant availability could add thousands of megawatts to the grid
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
A report by the Nigerian Electricity Regulatory Commission (NERC) has shown that the country’s grid-connected power plants are operating far below their installed capacity, even as households and businesses continue to experience frequent blackouts.
Source: Getty Images
According to the latest figures released by the NERC, power plants with a combined installed capacity of 13,625 megawatts generated an average of about 4,421 megawatts in January 2026.
The data shows that plant availability stood at just 36%, indicating that nearly two-thirds of Nigeria’s power generation infrastructure was not operational during the month.
Plants operating far below capacity
Total available capacity reached only 4,901MW, less than half of what could be produced if all plants were functioning.
NERC’s figures suggest that the sector’s challenges are driven less by a lack of infrastructure and more by ongoing operational and structural issues.
Expert blames gas supply gaps
Experts point to gas supply disruptions, equipment maintenance problems, and transmission constraints as key factors limiting electricity generation.
Speaking on the figures, Lagos-based energy analyst Chinedu Okafor said the gap between installed and available capacity highlights long-standing inefficiencies in the sector.
He noted that Nigeria’s immediate challenge is fixing existing plants rather than building new ones.
Performances of power plants
Performance across major power plants varied widely during the month. Ihovbor_2 recorded full utilisation of its available capacity, achieving a 100% plant availability factor, although its installed capacity of 461MW is relatively small.
In contrast, Egbin_1, Nigeria’s largest thermal power plant with an installed capacity of 1,320MW, operated at just 51% availability, despite recording a 95% load factor when in operation.
Several major plants produced little or no power in January. Afam_1, with an installed capacity of 726MW, recorded only 7% availability, while Alaoji_1 (500MW) and Ibom Power_1 (190MW) generated no electricity throughout the month.
Together, these underperforming plants represent nearly 1,500MW of unused capacity, according to the data.
Weak power generation affects economy
The impact of weak power generation remains significant for the economy. Unreliable electricity supply forces businesses and households to rely heavily on diesel generators, raising operating costs.
The World Bank estimates that Nigeria loses about $29bn annually due to poor electricity supply, equivalent to roughly 2% of the country’s gross domestic product.
Gas supply challenges continue to be the biggest constraint for thermal power plants, which make up most of Nigeria’s generation capacity.
Despite having Africa’s largest natural gas reserves, issues such as pipeline vandalism, commercial disputes, and inadequate gas infrastructure have limited reliable supply to power plants.
Source: Getty Images
FG blames gas-to-power value chain
Amina Bello, a former adviser to the Ministry of Power, said the gas-to-power value chain remains a major bottleneck, noting that power plants cannot operate without consistent fuel supply.
Transmission limitations further restrict power delivery. The Transmission Company of Nigeria (TCN) has acknowledged that the national grid can currently transmit only about 5,500MW, limiting how much electricity can be distributed even when generation capacity is available.
The figures come at a time when pressure is mounting on the federal government to address Nigeria’s electricity crisis. President Bola Tinubu’s administration has pledged to raise power generation to 10,000MW by 2025, a target that appears increasingly difficult to achieve under current utilisation levels.
Recent reforms have included steps toward decentralising electricity regulation, granting states greater control over power generation and distribution. However, challenges related to financing, gas supply, and transmission infrastructure remain unresolved.
NERC’s January data suggests that modest improvements could deliver meaningful gains. Analysts note that increasing plant availability to 60% – still below global benchmarks – could add about 3,000MW to the national grid without building new power plants.
Tinubu administration unveils $2.5bn power supply strategy
Legit.ng earlier reported that the federal government announced plans to raise $2.5 billion to settle power sector debts and fund major upgrades to electricity transmission and distribution.
The fund from the program would stabilise supply for about 12 million customers while unlocking 4,484 megawatts of capacity.
Representatives of the government said the initiative would reset the electricity market by improving revenue collection, modernising the grid and other benefits.
Source: Legit.ng
