Amid N1.5tn bailout, electricity worsen under the Buhari led administration
Despite the Federal Government’s N1.51 trillion investment in the sector since the current administration took office in 2015, Nigeria’s available power generation capacity fell by 981.8 megawatts between 2015 and August 2022.
This occurred as the national grid failed 98 times under the presidency of Major General Muhammadu Buhari.
According to a document received in Abuja from the Association of Power Generation Companies, the umbrella group of energy producers, available power generation capacity was 6,616.28MW in 2015 but had reduced to 5,634.47MW as of August this year.
It was also learned that the overall power generation capacity loss for the sector between 2015 and August 2022 amounted to N1.76tn, as operators and experts lamented the industry’s sad status since its unbundling in November 2013.
Although additional examination of the document revealed that available generating capacity changed between 2015 and 2022, statistics from the study suggested that Nigeria’s available generation was not spectacular, particularly since last year.
It should be noted that available generation capacity differs from average utilisation generation, as the latter is always lower than the former.
In fact, data from the document indicated that Nigeria’s average utilised generation during the review period hovered between 3,600MW and 4,118MW, which were, of course, lower than the least available generation capacity of 5,634.47MW recorded between January and August this year.
The available generation capacities in 2015, 2016, 2017 and 2018 were 6,616.28MW, 7,039.96MW, 6,871.26MW and 7,506.23MW respectively.
For 2019, 2020, 2021 and 2022 (January – August), the available power generation capacities of electricity producers across the country were 7,381.67MW, 7,792.51MW, 6,336.52MW and 5,634.47MW respectively.
Annual capacity payment losses in the industry in 2019, 2020, 2021, and 2022 (January – August) were N256.97bn, N266.10bn, N159.86bn, and N88.13bn, respectively.
According to the numbers above, despite the Federal Government’s investments in the power industry, which are projected to be worth about N1.51 trillion, available generation capacity has not increased significantly, and has rather decreased since last year.