The federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has granted 13 new licenses for off-grid and embedded power generation, independent electricity distribution, and electricity trading. The licenses, totaling 40.9 megawatts in cumulative capacity, were issued in the third quarter of 2023.
The latest NERC report reveals that the licenses include five for off-grid generation (8.81MW), one for embedded generation (5MW), one for independent electricity distribution network, and one for trading. The issuance reflects the government's commitment to diversifying and expanding the nation's power sector.
NERC clarified that licenses cover various aspects of the electricity supply industry, including generation, transmission, distribution, trading, and system operations. Notably, permits are also issued for activities falling under sections 65-68 of the Electricity Act 2023, such as off-grid captive power generation and mini-grid development.
Despite recent efforts, Nigeria still faces power generation challenges, producing between 3,500MW and 5,000MW for its over 200 million population. The country grapples with regular blackouts, particularly in rural areas. In June 2023, Nigeria topped the list of countries with the highest number of people lacking access to electricity, with 86 million citizens living without power as of 2021.
To bolster electricity supply, the Federal Government, along with power sector operators, continues its pursuit of increased generation capacity. The issuance of these 13 licenses marks a strategic step toward achieving improved power supply and reducing the number of Nigerians without electricity.
Among the recipients, Daybreak Power Solutions Limited secured licenses for various off-grid projects across Lagos, Abia, Borno, Kano, Oyo, and Abuja. Ekiti Independent Power Project received a license for a 5MW embedded power project in Ekiti State, and Olokiti Power Distribution Limited obtained an Independent Electricity Distribution Network license for operations in Ekiti State. Other license recipients include Ember Power Limited, Island Power Limited, and Energy Company of Nigeria Limited.
Despite these efforts, power consumer groups continue to criticize the persistently poor electricity supply in Nigeria, urging the government and operators to intensify efforts for the benefit of the Nigerian populace.
