General
Agusto Seeks Improvement in Nigeria’s Electric Power Production
By Adedapo Adesanya
Research and credit ratings firm, Agusto & Co. has identified strategies for more improvement in the country’s electric power production.
In a research note shared with Business Post, the agency noted that Nigeria’s electric power consumption per capita of 145KwH falls behind those of select peers, South Africa (4,198) and Ghana (351KwH), as well as the average for lower middle-income countries of 811KwH.
“Following the unbundling and subsequent privatization of the long-standing government-owned monopoly in the power sector, as part of the power sector reform of 2004, honest and objective evaluations of the Nigerian Electricity Supply Industry’s (‘NESI’) performance in the post-power privatization era have ranged from ‘minimal improvement’ to ‘more of the same’. The entire NESI value chain is fraught with structural impediments, which have continued to impede optimal performance, with operators consistently ‘passing the buck’,” Agusto noted.
Nigeria, according to the World Bank, has the largest energy access deficit in 2021, with 43 per cent (or 85 million Nigerians) of the country’s population without access to grid-connected electricity.
“As of 31 December 2022, the generating segment of the market comprised 29 operational generating plants with a combined installed capacity of 13,014MW and an average operational capacity of 4,523MW – down 29 per cent from 6,371.9MW in 2019.
“There were 12 Independent Power Plants (IPPs) in Nigeria in 2022, accounting for 31.2 per cent of the country’s total power generating capacity, a 300 basis points decline from 2021 – due largely to gas constraints and faulty machinery.”
Agusto & Co. pointed out that on average, and due largely to gas constraints, only five IPPs: Azura-Edo (26 per cent), Odukpani (19 per cent), Okpai (16 per cent), Afam VI (15 per cent), and Rivers IPP (8 per cent) jointly accounted for circa 84 per cent of the power generated from the 12 IPPs in the last four years.
Agusto also explained that lingering gas shortages are proving to be difficult for Africa’s largest economy.
“Gas constraints remain prevalent despite the fact that Nigeria has the world’s ninth-largest proven gas reserves, estimated at 204 trillion cubic feet in 2022. The domestic gas market in Nigeria has been plagued by chronic underinvestment in generating and distribution infrastructure.
“At the same time, under the domestic supply obligation framework within the Gas Master Plan (GMP), all gas companies are required to supply an assigned quota of gas to critical sectors (including electric power) at prices ($2.18mscf) lower than what is obtainable in international markets (average of $7.52mscf in the US market in 2022).”
As a result, “operators of thermal plants struggle to secure viable gas contracts at the approved price. As at the end of 2022, 25 of the country’s 29 GenCos were gas-powered, underscoring the urgency of finding a long-term solution to gas supply constraints,” the note explained.
The firm noted that the weakest link in the NESI value chain is the Transmission Company of Nigeria (TCN), which is still entirely government-owned.
“The national grid has a wheeling capacity of circa 8,100MW, which pales in comparison to the nation’s peak electricity demand of 19,798 MW. This implication is that even with an increase in the generating capacity of the grid-connected IPPs, the TCN is unable to evacuate more than 8,100MW.”
Agusto & Co. noted that the TCN is a critical bottleneck in the supply of electricity and has stalled investment in power generation.
“On the other hand, the TCN continues to blame load rejection by distribution companies, particularly during the rainy season, for the high frequency of grid collapses.”
Agusto & Co. anticipates that the current Nigerian Electricity Grid Maintenance Expansion and Rehabilitation Program (NEGMERP), which aims to expand the country’s grid network through the diligent execution of network expansion projects funded by both the Federal Government and donors, will result in some growth in NESI in the short term.
This is in addition to the Presidential Power Initiative signed with Siemens AG, which is expected to result in an additional 25,000MW of operational capacity from the national grid.
“The completion of such projects will assure prospective power generation companies that the TCN has ample capacity to receive generated electricity. With a more efficient TCN, Nigeria can achieve self-sufficiency in power supply, making electricity exports easier through the West African Power Pool’s (WAPP) future Regional Electricity Market (REM).”
Agusto lauded President Muhammadu Buhari’s signing of the Fifth Alteration Bill No. 33, 2022 (the “Electricity Constitutional Amendment”), which allows Nigeria’s 36 States to generate, transmit, and distribute electricity in areas covered by the national grid.
“This has significant implications for the country’s struggling power sector, as it could lead to increased investment in power generation and distribution infrastructure, as well as increased competition among power providers.
“By devolving power to the States, Agusto & Co. believes the bill could also lead to more efficient and effective management of the power sector, as states will have greater control over their power supply. This could lead to more targeted investment in power infrastructure and more responsive management of power supply and demand.”
This is without some limitation as, “the bill also raises concerns about the potential for fragmentation of the power sector, as different states may have different priorities and approaches to power generation and distribution, leading some, to possibly bypass the national grid entirely.
“Furthermore, States deemed to lack a sufficient economic base may be unable to attract investors in their electricity generation, transmission, or distribution, causing them to fall behind other States in terms of electricity supply. This could constrain the business environments in these States, thereby eroding investor confidence, discouraging investment, and limiting economic growth and development.”
Giving its outlook, the firm noted that the NESI is currently in the second stage – the transitional electricity market (TEM) – on its evolutionary path, where the state-owned special purpose vehicle (the Nigerian Bulk Electricity Trading Plc – ‘NBET’) buys electricity in bulk from the generating companies and independent power producers (IPPs) and resells to the distribution companies (DisCos) under vesting contracts.
As it transitions to the medium-term market, Agusto & Co. expects more IPPs to become operational, which will significantly raise the Industry’s generation capacity over the medium term.
By Aduragbemi Omiyale
The General Manager in charge of Transmission for Lagos Region of the Transmission Company of Nigeria (TCN), Mr Adeshina Adeonipekun, has stressed the critical role of Lagos in the national grid.
While receiving the chief executive of Eko Electricity Distribution Company (EKEDC), Ms Wola Joseph Condotti, at his office on Monday, he said the Lagos region accounts for about 30 per cent of total power off-take in Nigeria.
He stated that TCN was implementing strategic expansion and project upgrades aimed at enhancing grid stability and operational efficiency in response to rising demand.
Mr Adeonipekun highlighted recent key milestones achieved in the region, including the commissioning of a 100MVA power transformer at the Ijora 132/33kV Transmission Substation, a 300MVA transformer at the Lekki 330/132kV Transmission Substation, and a 125MVA unit at the Agbara 132/33kV Substation, among others.
According to him, these additions have further increased the region’s installed capacity to 5,470MVA on the 132/33kV network and 4,110MVA on the 330/132kV network.
He further said that there were several ongoing rehabilitations at key substations within the region, including Amuwo GIS, Akoka 132/33kV, and Itire 132/33kV Transmission Substations, all geared towards further improving reliability, reducing system constraints, and enhancing the overall efficiency of power delivery.
In her remarks, Ms Condotti expressed appreciation for TCN’s continued partnership and support, underscoring the importance of sustained collaboration between transmission and distribution companies in building a more stable and efficient electricity transmission and supply network.
Both parties explored ways to strengthen collaboration and ensure a more stable and efficient power supply in Lagos, the nation’s commercial hub.
By Adedapo Adesanya
The Governor of Anambra, Mr Chukwuma Soludo, says the years-long sit-at-home is now a thing of the past in the state as it will bring back lost economic viability to the South East state.
The governor spoke on Tuesday during his inauguration for a second term as the leader of the state, noting that security has improved in Anambra.
“The debilitating one-sit-at-home is over, and our schools, markets, businesses, and public servants are back to work. Reports say that ours is now the safest, or at least one of the safest states in Nigeria,” Mr Soludo said.
The second inauguration of the former governor of the Central Bank of Nigeria (CBN) witnessed eminent Nigerians, including ex-presidents Mr Goodluck Jonathan and Mr Olusegun Obasanjo, as well as the Vice President, Mr Kashim Shettima, among others.
“I’m sure many of you flew into Anambra yesterday, being Monday. Previously, it was not possible,” he said at the Alex Ekwueme Square in Awka, the state capital.
Primarily associated with the Indigenous People of Biafra (IPOB), a separatist group advocating for an independent Biafran state, the sit-at-home saw millions of South-East residents remain indoors, shut their businesses, and stay off the roads on Mondays. Initially, it was declared as a weekly protest (especially on Mondays) to demand the release of IPOB leader, Mr Nnamdi Kanu, in 2021 by the Federal Government and draw attention to the separatist cause.
The cause had significant socio-economic consequences in the South-East states like Abia, Anambra, Ebonyi, Enugu, and Imo.
However, Mr Soludo referenced several milestones, including the destruction of criminal camps and the “mass return” of Anambra indigenes during the Yuletide, as evidence of improving security in the state.
“Some 62 criminal camps have been dismantled, and 8 local governments previously under total siege have been liberated,” the governor said.
“Anambra had its best Christmas season in decades last December with a mass return and over 10,000 visitors per day to the Solution City every day until the 10th of January.”
Part of the measures to address insecurity in Anambra was the Homeland Security Law 2025, a measure the governor said contributed to the reduction in criminality.
The Independent National Electoral Commission (INEC) declared Mr Soludo as the winner of the November 8, 2025, governorship election in Anambra State. The APGA candidate polled a total of 422,664 votes, defeating his closest rival, the candidate of the All Progressives Congress, Mr Nicholas Ukachukwu, who scored 99,445 votes, while the candidate of the Young Progressives Party, Mr Paul Chukwuma, came third with 37,753 votes.
By Aduragbemi Omiyale
The Economic and Financial Crimes Commission (EFCC) has cautioned members of the public against making any payment for Special Control Unit Against Money Laundering (SCUML) certificate registration, stressing that it is free.
During a live radio programme on Enugu State Broadcasting Service, the Head of SCUML Department in Enugu Zonal Directorate of the EFCC, Mr Promise Oluigbo, said obtaining the certificate is now seamless.
According to him, with the introduction of electronic certification, which has improved efficiency and eliminated the risk of fake certificates, over 480,000 entities have been registered nationwide.
He warned members of the public against engaging agents who charge fees for SCUML registration, stressing that the commission does not authorise third-party registrations.
“The EFCC frowns at any individual or group collecting money from businesses under the guise of facilitating SCUML registration. The process is seamless and free of charge,” Mr Oluigbo declared.
He charged operators of Designated Non-Financial Businesses and Professions (DNFBPs) in the South-East to comply with mandatory SCUML registration to combat money laundering, terrorism financing, proliferation of weapons of mass destruction, safeguard businesses and strengthen the integrity of Nigeria’s financial system.
“DNFBPs are categories of businesses identified under Section 30 of the Money Laundering Act and include sectors such as automobile dealerships, real estate businesses, construction firms, hospitality services, supermarkets, legal practitioners, consultants, and non-profit organisations.
“As a regulatory body responsible for overseeing the activities of these businesses to curb money laundering and financing of terrorism, it’s important I say it here that the registration process is completely free.
“Business owners do not need to engage any third party. All they need to do is visit the SCUML portal and complete the registration process,” he said.
While emphasizing on the need for businesses to register and collect the certificate, he urged them to ensue adherence to statutory requirements such as Know Your Customer (KYC) procedures, customer due diligence, record keeping and reporting of suspicious transactions, adding that failure to comply constitutes a violation of the law and may attract fines, imprisonment or other regulatory sanctions as stipulated under the Act.
“The objective of the SCUML framework is not to stifle businesses but to protect the financial system and ensure transparency in commercial activities. It is designed to safeguard businesses and strengthen the integrity of Nigeria’s financial system,” he said.
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