Nigeria’s manufacturing sector could soon see relief from severe power shortages under ambitious new Federal Government targets designed to revamp the national grid.
According to figures presented by the Ministry of Power, the country suffers from a staggering generation shortfall, maintaining an average daily availability of just 4,854 megawatts out of an installed grid capacity of 13,625MW. With realistic peak demand hovering around 20,000MW, roughly 62 per cent of total capacity sits idle. This deficit triggered 26 grid collapses in 2024 alone, forcing businesses to rely heavily on self-generation, a burden accounting for 30 to 40 per cent of factory operational costs.
To counter the crisis, the government has pledged to boost national electricity access beyond 80 per cent within five years and eliminate the divide between installed and operational power within three.
Speaking on ‘Industrialisation and Regional Competitiveness: The Role of Power’ at the Nigeria Economic Summit Group event in Lagos, Minister of Power Joseph Tegbe outlined plans to align with regulator targets, cutting Aggregate Technical, Commercial and Collection losses to under 16.92 per cent over the next three years.
The presentation, delivered by the minister’s Special Adviser, Martins Olajide, highlighted that Nigerians spent ₦16.5tn on private generators in 2023, compared to just ₦1tn spent on grid supply. The World Bank estimates these power failures cost the economy $25bn annually—up to seven per cent of GDP.
Addressing these structural failures remains vital to broader economic goals, with Tegbe linking the power overhaul directly to federal growth targets.
“President Bola Tinubu has been absolutely clear about the economic direction of this administration – to transform Nigeria into a one trillion-dollar economy – and electricity sits at the heart of that ambition,” he said.
Key industrial routes are already being targeted for upgrades, with infrastructure work underway across the Lagos, Enugu–Port Harcourt, and Abuja–Kaduna–Kano transmission corridors.
“The plan is in motion: transmission corridors through Lagos, Enugu–Port Harcourt and Abuja–Kaduna–Kano are being strengthened, seven million meters are rolling out, training of 5,000 recently commenced, and captive economic clusters are linking power directly to industry,” Tegbe added.
To secure long-term financial viability, the government aims to establish an independent, market-driven electricity sector free from state interference, cutting persistent industry debt while driving regional trade ambitions.
“Over 80 per cent access, ATC&C losses below 17 per cent, the capacity gap closed – Nigerian industry gets the reliable, affordable power it needs to compete for AfCFTA’s 1.4 billion consumers,” Tegbe stated.