The Nigerian Electricity Regulatory Commission (NERC) has announced the issuance of 13 new licences by the Federal Government, focusing on power generation, distribution, and trading. These licences, disclosed in the third quarter of 2023, cover off-grid and embedded power generation, independent electricity distribution, and electricity trading. The cumulative electricity generation capacity of the licensees is reported to be 40.9 megawatts.
Within the third quarter of 2023, NERC granted five new off-grid generation licences, capable of generating 8.81 megawatts, along with one embedded generation licence for 5 megawatts. Additionally, the commission issued one licence each for Independent Electricity Distribution Network (IEDN), trading, off-grid generation, embedded generation, and three more off-grid generation licences.
NERC clarified that these licences cover various activities within the Nigeria Electricity Supply Industry, including electricity generation, transmission, distribution, trading, and system operations. It further explained that for activities not mandating licences but requiring authorization from the commission, such as off-grid captive power generation and mini-grid development, permits are issued following a review of the relevant applications.
Despite the efforts of the Federal Government and power sector operators to enhance electricity generation in Nigeria, the country faces challenges in meeting the energy needs of its population. As of June 2023, Nigeria was reported to have the largest number of people lacking access to electricity, with 86 million out of over 200 million citizens living without electricity as of 2021.
The new licences aim to contribute to the ongoing initiatives to improve power supply in the country. Notable among them are licences granted to Daybreak Power Solutions Limited for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo, and Abuja. Additionally, Ekiti Independent Power Project received a licence for a 5MW gas-fired embedded power project in Ekiti State, while Olokiti Power Distribution Limited obtained an IEDN licence for operations in Ekiti State. Other recipients include Ember Power Limited, Island Power Limited, and Energy Company of Nigeria Limited, each receiving licences for specific power-related projects.
Despite these efforts, power consumer groups continue to express dissatisfaction with the current state of electricity supply in Nigeria, urging the government and industry stakeholders to intensify their efforts to ensure consistent and adequate power delivery to the population.
