The Nigerian electricity sector experienced a decline in the fourth quarter of 2024 (Q4 2024), with the electricity production index dropping by 1.64% year-on-year, according to data from the Central Bank of Nigeria (CBN).
This decline contrasts sharply with the 5.55% growth observed in the third quarter of 2024 (Q3 2024), highlighting ongoing challenges within the country’s power sector.
Despite this setback, the broader Nigerian economy showed significant growth in Q4 2024, with 21 out of 22 subsectors reporting positive performance.
On a quarter-on-quarter basis, the electricity subsector demonstrated signs of recovery, with the index increasing by 22.50% compared to a steep decline of 49.46% in the previous quarter.
Consequently, the average estimated electricity generation rose by 2.34%, reaching 4,206.50 megawatts per hour (MW/h), up from 4,110.47 MW/h in Q3 2024. Likewise, electricity consumption saw a slight increase of 2.63%, climbing to 4,105.66 MW/h from 4,000.24 MW/h.
Factors Contributing to Economic Growth
The widespread economic growth observed in the fourth quarter of 2024 can be linked to various elements, including heightened business confidence, a rise in consumer spending, and stronger performance in essential sectors like agriculture, manufacturing, and telecommunications.
