Available generation capacity in Nigeria’s power sector fell again in 2022, plummeting from 6,336.52 megawatts in 2021 to 5,346.82 MW last year, the latest generation trend data showed. electricity seen in Abuja on Monday.
It was also noted that the annual capacity payment loss to power generation companies had risen to N1.8 trillion as the data in the paper showed a decrease in average power used in 2022.
Figures obtained from power generation companies indicated that while the average amount of electricity used in 2021 was 4,118.98 MW, it dropped to 3,940.54 MW in 2022.
The Power Generation Trend (2013 – 2022) document showed that Nigeria’s average available generation capacity has fluctuated between 4,000MW and 7,700MW since the sector was privatized in 2013.
In addition, the average generation used ranged from 3,000MW to 4,000MW during the nine-year review period, while unused generation ranged from 1,000MW to 3,700MW.
Figures in the paper show that Nigeria’s average available power generation capacity in 2013, 2014, 2015 and 2016 was 4,214.32 MW; 6,154.05 MW; 6,616.28 MW; and 7,039.96 MW respectively.
In 2017, 2018, 2019 and 2020, the average available generation capacity figures were 6,871.26 MW; 7,506.23 MW; 7,381.67 MW; and 7,792.51MW respectively.
As of 2018, the figures continued to decline, being those of 2021 and 2022 of 6,336.52MW and 5,346.82MW respectively.
For the average generation used, the Gencos report indicated that in 2013, 2014, 2015 and 2016, the amount of electricity used was 3,183.51 MW; 3,419.1 MW; 3,606.05 MW; and 3,212.02 MW respectively.
The average power used in 2017, 2018, 2019 and 2020 was 3,599.33 MW; 3,807.22 MW; 3,782MW; and 4,050.07 MW respectively.
For 2021 and 2022, the average amount of electricity used was 4,118.98 MW and 3,940.54 MW, respectively, according to figures from power generating companies.
Gencos also stated in the document that the total loss of capacity payment to power producers from 2015 to 2022 had risen to N1.8tn.
The report showed that in 2015, 2016, 2017 and 2018, the annual capacity payment loss was N214.93bn, N273.32bn, N236.47bn and N264.08bn respectively.
For 2019, 2020, 2021 and 2022, the annual capacity payment loss figures were set at N256.97bn, N266.1bn, N159.86bn and N132.19bn respectively.
Commenting on the development, Association of Power Generation Companies Executive Secretary Joy Ogaji said the sector was only seeing growth of around 100MW in power generation a year.
He wondered if the vision of generating around 30,000 MW in Nigeria by 2030 was feasible and stressed that with the trend in power generation over the years, one could project the future of electricity production in Nigeria.
Ogaji said: “100MW annual growth. We can easily project in 20 years where we can be, apart from the political projection of megawatts. Do we really have a market? If so, what are the dynamics that sustain it?
“Is the 2030 vision viable? At 100MW per year by 2030, we only need to add 700MW and we can predict our target. Is the projection of 30,000 MW realistic?
The vice president of the Nigerian Labor Congress, Joe Ajaero, recently described Nigeria’s energy sector as a failure, noting that both the federal government and operators have failed to meet the expectations of electricity consumers across the country.
The Federal Government, however, opposed the workers’ position, arguing that the energy sector was now in good health despite the challenges facing the industry.
But Ajaero, who serves as the Secretary General of the National Union of Electricity Employees, told our correspondent that the amount of electricity produced in the sector had not increased since the sector was privatized in November 2013.
He said the stagnation in power generation had continued despite the persistent increase in consumer demand for electricity.
Asked to talk about the performance of the sector in 2022, Ajaero said: “If you are looking at the power sector, since you asked me to use a word to qualify it, the power sector is a failed sector. It’s a bankrupt sector, and that means it’s going down, down, down.
“This is because the megawatts produced in this sector have remained constant, while the demand for it increases day by day. If Nigeria had some conscious master plan, it would have ensured that energy production grows to meet demand.”