Nigeria exported electricity worth N181.62 billion between January and September 2024, according to data from the National Bureau of Statistics (NBS).
The export distribution included N58.65 billion to Togo, Benin, and Niger Republic in the first quarter, N63.28 billion in the second quarter, and N59.69 billion in the third quarter.
Despite this, the Nigerian Electricity Regulatory Commission (NERC) imposed a cap on electricity exports to neighboring countries in May 2024 to focus on enhancing the domestic market. NERC’s directive stated that exports to neighboring nations should not exceed six percent of total grid electricity at any given time. This order, outlined in the “Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters,” was intended to last six months, with a review scheduled thereafter. The order, signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, came into effect on May 1, 2024.
NERC argued that the previous export practices had undermined the ability of Distribution Companies (Discos) to meet their Service-Based Tariff (SBT) obligations, resulting in reduced market revenues. The commission highlighted that prioritizing exports over domestic supply led to inefficiencies and inequities, particularly during peak demand periods, when industrial, commercial, and residential customers were negatively affected.
Furthermore, NERC criticized the reliance on limiting Discos’ load off-take to manage grid imbalances, pointing out that this approach caused significant hardship. The prioritization of international exports, including to bilateral contracts, exacerbated the imbalance in power distribution. The commission also noted that international contracts with Generation Companies (Gencos) were often based on loose terms that fell short of industry standards.
