The Nigerian Electricity Regulatory Commission (NERC) has reported a staggering loss of ₦40.61 billion in electricity on transmission lines over the past six months, despite the country’s ongoing struggle with low electricity supply. According to NERC’s quarterly analysis, ₦22.64 billion was lost in the first quarter of 2025, and ₦17.97 billion in the second quarter, largely due to inefficiencies in the transmission system. This loss, termed the Transmission Loss Factor (TLF), indicates that only a portion of the electricity generated is successfully delivered to distribution centers.
The report highlighted that the TLF for the first quarter was measured at 9%—well above the approved target of 7%—resulting in significant revenue losses, as excess losses are not recoverable from customers. This issue is compounded by a liquidity crisis in the Nigerian Electricity Supply Industry (NESI), caused by factors like meter bypasses and vandalism, which have left many communities without power.
Minister of Power Adebayo Adelabu emphasized that electricity generation is limited to 4,500 to 5,000 megawatts due to insufficient demand, despite the installed capacity exceeding 13,000 megawatts. He urged state regulators and distribution companies to enhance electricity consumption to create a viable market. The government has secured over $2 billion in investments to improve electricity access and has initiated the Presidential Metering Initiative to address metering deficits.
Additionally, Nigeria has made strides in synchronization with the West African Power Pool, running tests that connected its grid to neighboring countries. This achievement is seen as a crucial step toward enhanced energy stability and future export potential. However, stakeholders continue to express concerns about ongoing operational inefficiencies, the fragile state of the grid, and the urgent need for infrastructure investment to meet domestic energy demands effectively.