The Chief Executive Officer of the Association of Nigerian Electricity Distributors, Sunday Oduntan, has raised concerns over Nigeria’s electricity generation capacity, stating that hydroelectric power plants are currently producing insufficient energy to meet the country’s growing demand.
Oduntan’s remarks come amid persistent power outages affecting homes and businesses across the country.
He explained that Nigeria’s three major hydroelectric plants—Shiroro Dam, Kainji Dam, and Jebba Hydroelectric Power Station—contribute less than one-third of the nation’s total electricity generation.
According to him, the shortfall has forced electricity distribution companies to rely heavily on gas-fired power plants, including the Egbin Power Station, to supplement supply.
“Gas is the fuel we use for most of our generation. We have water too, but that one is not much. Just three major hydro power plants… What they give us collectively is not up to one-third of our production,” Oduntan said.
He emphasized that increasing electricity production remains a key solution to Nigeria’s power challenges, noting that higher output would enable operators to meet obligations across the value chain.
Beyond generation constraints, Oduntan identified a worsening liquidity crisis within the sector as a major obstacle.
He urged consumers to pay for electricity consumed and called for stricter measures against illegal connections. He also appealed to government ministries, departments, and agencies to settle outstanding debts owed to power companies.
“It’s about payments… and they should deal with the issue of tariff mismatch,” he added, stressing the need for financial discipline across the sector.
The ANED boss further called for improved technical and commercial coordination within the electricity supply chain. He noted that generation increases must be matched by the capacity of the Transmission Company of Nigeria to transmit power, and by distribution companies to effectively deliver it to end-users.
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Recent data from the Nigerian Independent System Operator shows that Nigeria’s average available power generation stands at about 4,300 megawatts—far below installed capacity—largely due to inadequate gas supply to thermal plants.
Meanwhile, electricity distribution companies are grappling with additional financial pressure following a directive by the Nigerian Electricity Regulatory Commission, which ordered DisCos to refund N20.33 billion to customers under the Meter Asset Provider (MAP) scheme.
The March 1, 2026 directive requires the refunds to be credited to customers’ electricity bills over a 12-month period.
Industry stakeholders warn that the refund order, though aimed at protecting consumers and restoring confidence, could further strain the already fragile financial position of distribution companies operating within Nigeria’s electricity market.
The combined challenges of low hydro output, gas supply constraints, and liquidity issues continue to underscore the deep-rooted problems confronting Nigeria’s power sector, with stakeholders calling for urgent reforms to stabilise electricity supply nationwide.