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Home Economics Real Estate

Government Targets N1.49tn from Electricity Export Revenue

Simon Osuji by Simon Osuji
November 20, 2025
in Real Estate
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Government Targets N1.49tn from Electricity Export Revenue
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The Federal Government is aspiring to generate nearly $1 billion (approximately N1.49 trillion) annually from electricity exports to 15 countries within the Economic Community of West African States, beginning in June 2026.

This prospective revenue is predicated on the full 600 megawatts export capacity, assessing the prevailing regional tariff. Nigeria is earnestly pursuing full engagement in the West African power market, following a remarkable grid synchronization operation carried out earlier this month.

At a press conference in Abuja on Wednesday, the Minister of Power, Chief Adebayo Adelabu, illuminated this new revenue avenue, revealing that Nigeria successfully executed a grid synchronization test with 15 West African nations for four uninterrupted hours on November 8, 2025.

He articulated that this advancement positions Nigeria to fully leverage its pivotal role as the regional power nucleus within the West African Power Pool. This is particularly salient as generation companies intensify their adherence to free-governor control, an operational imperative that is vital for the stability of the regional grid.

On November 8, 2025, Nigeria triumphantly conducted a grid synchronization test that interlinked the national electricity grid with the expansive interconnected West African Power Pool system.

This synchronization exercise, which transpired between 05:04 am and 09:04 am, engaged the Nigerian grid—encompassing the Niger Republic and segments of Benin and Togo—as well as the interconnected networks of West Africa, which include Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea-Bissau, and Mali.

The minister stated that for four continuous hours, power flowed effortlessly across national boundaries, maintaining a singular stable frequency, thereby confirming that West Africa is now technically ready to function as a cohesive power bloc. This momentous occasion marks the first instance in history in which Nigeria has operated in a unified, stable, and completely harmonized arrangement alongside the rest of the sub-region.

Looking beyond this recent success, the minister added that the government is diligently working towards achieving permanent grid synchronization by June 2026, with a second 48-hour test run planned once ongoing negotiations with regional operators are finalized.

The Executive Director of Market Operations at the Nigerian Independent System Operator, Edmund Eje, stated that Nigeria currently allocates 600MW daily for its bilateral power trade agreements. Data from the Nigerian Electricity Regulatory Commission reveals that Nigeria continues to provide the most affordable electricity tariffs in West Africa.

NERC statistics indicate that the average approved end-user tariff in Nigeria is roughly $0.07 per kilowatt-hour (around N100.27/kWh), accounting for merely 35.71 percent of the average $0.19/kWh charged by various other countries in the sub-region.

If the exported power is charged at this regional tariff, government officials project that delivering the entire 600MW allocation could yield nearly $1 billion in annual revenue.

A detailed analysis shows that exporting 600MW, equivalent to 600,000 kilowatts, at the regional tariff of $0.19 per kilowatt-hour could generate approximately $114,000 every hour. This amounts to roughly $2.73 million per day and an estimated $998.6 million in annual revenue.

This projection anticipates uninterrupted export of the contracted volume once a permanent grid synchronization is established at a provisional date of June 2026. Officials assert that this revenue could serve as a crucial support for the power sector, mitigate liquidity deficiencies, and stimulate the expansion of regional energy markets.



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