In a significant move to bolster Nigeria’s electricity generation, the Nigerian Electricity Regulatory Commission (NERC) has issued 13 new licences, targeting an additional 40.9 megawatts (MW) through off-grid generation, embedded power, independent electricity distribution, and electricity trading.
The licenses, granted in the third quarter of 2023, signal a commitment to addressing the country’s power deficit, which currently hampers economic development and affects millions of Nigerians.
According to NERC’s latest report, the new licences include five for off-grid generation, generating 8.81MW, and one for embedded generation, contributing 5MW.
Also, licences were granted for independent electricity distribution networks, trading, and three more off-grid generation projects.
The move aligns with efforts to diversify and expand Nigeria’s power sector, where the demand for electricity far outstrips the current supply.
Nigeria, with a population exceeding 200 million, has faced persistent challenges in providing adequate and reliable electricity to its citizens.
The new licenses aim to introduce more diverse sources of power, promoting resilience and reducing dependence on the national grid.
As the nation strives to improve its electricity infrastructure, private sector involvement is emphasized, with over 80% of the required $100 billion investments outlined in the Nigeria Agenda 2050 expected to come from private capital.
This strategic approach underlines the government’s commitment to creating a more robust and efficient power sector, crucial for driving economic growth and improving the lives of its citizens.