The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has granted 13 new licences for power generation, distribution, and trading.
The latest development, as revealed in the third quarter 2023 report, brings a cumulative 40.9 megawatts to the nation’s electricity capacity.
The licenses, issued for off-grid and embedded power generation, independent electricity distribution, and electricity trading, aim to address the country’s persistent power challenges.
Notably, five new off-grid generation licenses, generating 8.81MW, and an embedded generation license for 5MW were among those issued during the review period.
Daybreak Power Solutions Limited received eight licenses for various off-grid power generation projects spanning Lagos, Abia, Borno, Kano, Oyo, and Abuja.
Additionally, Ekiti Independent Power Project secured a license for a 5MW gas-fired embedded power project in Ekiti State, contributing to the diversification of power sources.
Olokiti Power Distribution Limited obtained an Independent Electricity Distribution Network license operational in Ekiti State, while Ember Power Limited received an electricity trading license. Island Power Limited also secured a license for a 10MW embedded gas-fired power project in Lagos.
The issuance of licenses is part of ongoing efforts by the Federal Government and power sector operators to address the country’s electricity deficit, which has led to frequent blackouts in both urban and rural areas.
Nigeria currently generates between 3,500MW and 5,000MW for its over 200 million population, prompting initiatives to bolster power supply.
Despite the investments made in the sector, power consumer groups continue to criticize the insufficient electricity supply. In June 2023, Nigeria was identified as the country with the largest number of people lacking access to electricity.
The recent licenses aim to contribute to narrowing this gap, supporting the government’s commitment to improving the electricity landscape and delivering reliable power to all Nigerians.
