Nigeria’s Power Generation Hits Three-Year High Amid MoU Signing for Renewable Energy Expansion
Abuja, Nigeria – Nigeria’s power generation has surged to a three-year high of 5,313 megawatts, the Federal Ministry of Power announced on Monday. This achievement marks a significant milestone in the country’s efforts to improve electricity supply, despite ongoing challenges in the energy sector.
The ministry’s statement, released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, urged power distribution companies (Discos) to ensure the efficient distribution of the increased energy output to prevent grid collapse. The minister emphasized the importance of Discos taking up the additional energy to maintain grid stability, as the grid’s frequency can drop when produced power is not utilized.
Adelabu also called on industries to consider purchasing bulk energy to support the power sector and prevent wastage of the generated electricity. However, a senior official from one of the Discos, who preferred to remain anonymous, highlighted the challenges they face in absorbing the extra energy. The official pointed out that the current tariff structure, particularly for bands other than Band A, is not financially sustainable, leading to difficulties in cost recovery and potential losses for the Discos.
The ministry’s statement also revealed that the Federal Government had recently signed a Memorandum of Understanding (MoU) with Mutual Commitment Company Limited (MCC), a Chinese firm, to assemble electric tricycles and establish a renewable energy training center in Nigeria. The MoU was signed during the African-China Cooperation Summit in Beijing, with Minister Adelabu and the Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, in attendance.
Adelabu expressed optimism about the partnership, stating that it aligns with President Bola Tinubu’s Renewed Hope Agenda, which prioritizes the power sector as a key driver of economic growth. He highlighted the importance of moving away from the centralization of the power sector towards a distributed energy model, which would improve energy access, particularly for rural areas and critical institutions like universities and hospitals.
The minister also emphasized Nigeria’s commitment to transitioning to cleaner and more sustainable energy sources. He noted that while Nigeria has only achieved a 62% electrification rate, compared to near-total electrification in some North African countries, the country has the natural resources and potential to significantly improve its energy access.
The REA’s Managing Director, Abba Aliyu, assured that the MoU would help build local capacity, create job opportunities, and drive economic growth. He also mentioned that MCC is already engaged in Nigeria with ongoing projects, including the construction of power plants in Maiduguri and Kaduna.
The Vice Chairman of MCC, Yan Zhezhu, expressed the company’s commitment to contributing to Nigeria’s energy sector, highlighting their longstanding involvement in the country and ongoing projects in collaboration with both state and federal governments.
As Nigeria continues to push for greater energy access and sustainability, the increase in power generation and the new partnership with MCC represent significant steps towards achieving these goals.