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Home Economics Real Estate

Nigeria reduces electricity supply to three neighbouring countries

Simon Osuji by Simon Osuji
May 7, 2024
in Real Estate
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Nigeria reduces electricity supply to three neighbouring countries
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The Federal Government has decided to improve the domestic power supply by cutting the sales to cross-border in the Niger Republic, Niger Republic and Togo.

The electricity regulator, Nigerian Electricity Regulatory Commission (NERC) ordered a department within the Transmission Company of Nigeria, the System Operator (SO), to cap power supply to the three neigbhouring customers to six per cent.

NERC’s order, published on Friday, was dated April 29, 2024, and effective from May 1, 2024, was jointly signed by the commission’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.

The directive, outlined in a document titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,’ will only last for six months, subject to change.

According to the document, power delivery to Nigeria’s neighbours must not exceed six per cent of the total grid electricity at any given time.

The electricity sector regulator expressed concern about sub-optimal grid dispatch practices, which have impacted the ability of Distribution Companies (DisCos) to meet their service tariff commitments to end-users.

“The reliance on limiting Discos’ load off-take while prioritising international off-takers and Eligible Customers has proven neither efficient nor equitable,” the document read.

NERC stressed that the current international and bilateral contracts with Generation Companies (GenCos) often fall short of industry standards.

It stated that many off-takers contracted bilaterally by GenCos exploit this prioritisation, exceeding their contracted levels during peak operations without penalties.



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