Introduction
The year 2024 was transformative for the Nigerian Power Sector, marked by several significant developments including the handover of the 700MW Zungeru hydropower plant, the successful implementation of Service-Based Tariff and the removal of the electricity subsidy for Band-A consumers, the initiation of the transition to State-level regulation, among other milestones. This 2025 Power Sector Industry Overview therefore highlights key legal and regulatory developments within the Power Sector in 2024 and outlines projections for 2025.
Market Performance
Generation
As highlighted in our 2024 Power Sector Mid-Year Report, the historical challenges hindering the effective performance of the Nigerian Power Sector still persists in 2024. As of January 2024,[1] with 26 grid-connected power plants, the total available generation capacity stood at 4,459.41 MW, with an average hourly generation of 4,274.80 MWh/h and a total energy generation of 3,180.45 GWh. However, according to the Nigerian Electricity Regulatory Commission (“NERC”)’s November 2024 Factsheet on the Operational Performance of Power Plants,[2] in November 2024, the average available generation capacity rose to 5,257 MW due to the increase in grid connected plants, but the average hourly generation was slightly below the performance recorded in January 2024 at 4,192 MW. The Minister of Power, Adedayo Adelabu, however disclosed intentions to foster an increase of grid generated power by 150MW before the end of 2024.
Transmission
The national grid was reported to have collapsed at least 11 times by November 2024, primarily due to deteriorating infrastructure, as well as the activities of bandits and vandals, among other factors. It was also reported that between January to August 2024, vandals had destroyed about 63 transmission towers across Nigeria.
