Nigeria’s generation companies say they have recorded losses estimated at N2.3 trillion due to electricity that could not be delivered to consumers as a result of persistent transmission grid limitations.
The Gencos explained that although power plants have the capacity to produce more electricity, a large portion ends up stranded because the national grid cannot wheel the generated power across the country efficiently.
The Association of Power Generation Companies disclosed the figures in a new report highlighting the widening gap between available generation capacity and what is actually transmitted for public use. The group said the current challenges have discouraged fresh investments and slowed ongoing expansion programmes meant to boost supply. “We are losing huge revenue daily because the grid cannot take what we are producing,” the report stated.
According to the document, the combined installed capacity of Gencos stands at over 13,000 megawatts, but only about 4,000MW is consistently transmitted to homes and businesses. The group noted that the persistent bottlenecks in transmission infrastructure have resulted in frequent load rejection and under-utilisation of many power plants. It warned that the industry cannot achieve stable electricity without urgent government intervention.
Reacting to the situation, some operators described the losses as alarming and a threat to Nigeria’s power reform goals. One operator was quoted as saying that “about 8,000MW of potential power remains stranded annually due to the inability of the grid to absorb and distribute it.” They emphasised the need for critical upgrades to key transmission lines and substations to stop further wastage.
The Association called on the Federal Government to accelerate investments targeted at modernising the grid, improving system reliability and enabling more private sector participation. It stressed that the current transmission system is outdated and cannot support Nigeria’s economic development ambitions. The group urged policymakers to treat grid enhancement as a national priority.
Industry analysts also advised that enhancing off-grid and embedded generation could provide immediate relief while long term grid expansion progresses. They maintained that addressing the issue would reduce losses, boost supply, improve customer satisfaction and restore investor confidence in the sector.
