Key points
- NISO says Nigeria has lost more than N2.376 trillion in capacity payments due to underutilised electricity generation since 2015.
- Available generation capacity stood at 7,311MW in May 2026, but only an average of 4,222MW was dispatched.
- NISO says its priority is improving operational efficiency and converting existing generation capacity into economic value.
- Energy stakeholders called for greater local manufacturing, innovation and value addition to drive sustainable industrialisation.
Main story
Nigeria has lost more than N2.376 trillion in capacity payments since 2015 because a significant portion of its electricity generation capacity remains underutilised, the Nigerian Independent System Operator (NISO) has said.
The Managing Director and Chief Executive Officer of NISO, Mr Abdu Bello, disclosed this at the 11th Nigeria Energy Forum (NEF 2026) in Lagos, where industry leaders examined strategies for accelerating sustainable industrialisation through the energy sector.
Represented by NISO’s General Manager of Research, Mr Deji Ojo, Bello said the creation of NISO marked a shift in the power sector’s priorities from simply expanding infrastructure to improving operational efficiency, market performance, system reliability and industrial competitiveness.
He explained that although Nigeria had an available generation capacity of 7,311 megawatts as of May 2026, the average electricity dispatched onto the grid was only 4,222 megawatts.
According to him, more than 3,100 megawatts of available generation capacity remains stranded and is not being translated into economic value.
Bello said NISO’s focus is to maximise the utilisation of existing generation assets by ensuring that more available electricity reaches consumers and contributes to economic growth.
Delivering a separate presentation, the Group Managing Director of Odu’a Investment Company Limited, Mr Abdulrahman Yinusa, described reliable electricity as the foundation of industrial development.
Represented by the company’s Executive Director for Investment and Business Development, Mr Yemi Ajao, Yinusa said Nigeria must move beyond exporting raw materials and instead develop industries that produce finished goods locally.
Speaking at the conference, the Chief Executive Officer of All On, Ms Caroline Eboumbou, said innovation would play a central role in shaping Nigeria’s energy future.
Represented by Senior Grant Associate Jadesola Rawa, she highlighted the success of the Tertiary Institutions Student Energy Challenge (TIEC), noting that several previous winners had received additional support through All On’s innovation hub to strengthen and commercialise their businesses.
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Omatsola Ogbe, urged Nigerians to prioritise locally manufactured products and make greater use of indigenous human and material resources to drive sustainable development.
Other speakers stressed the importance of technology, innovation and value addition across key sectors.
The Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Mr Khalil Halilu, said the agency was building an ecosystem that supports local innovation, manufacturing and global commercialisation.
Representing the Rural Electrification Agency (REA), Senior Strategy Adviser Abba Hayatudeen said sustainable energy would ultimately be measured by its ability to empower businesses, revive industries and improve prosperity.
The National Coordinator of the Global Environment Facility Small Grants Programme (GEF-SGP), Mrs Ibironke Olubamise, said the programme continued to support communities in addressing environmental challenges while improving livelihoods.
Speaking on the role of innovation, NEF Co-Chair Mr Adekunle Makinde said the forum had evolved into a platform that connects student innovators with investors capable of helping them scale clean energy solutions.
He said projects that previously ended in university libraries were now attracting grants and commercial support through the initiative.
Other speakers included KoBold Metals Africa CEO Mfikeyi Makayi, who discussed the growing use of artificial intelligence in mineral exploration; the Director-General of the Raw Materials Research and Development Council, Prof. Nnanyelugo Ike-Muonso, who advocated greater utilisation of Nigeria’s raw materials; MTN General Manager for Enterprise Sales, Mr Febisola Oyeniyi, who highlighted the relationship between digital technology and sustainable energy; and the Director-General of the National Board for Technology Incubation, Dr Kazeem Raji, who emphasised the importance of bridging innovation and industrialisation.
The forum also recognised outstanding student innovators under the All On TIEC 4.0 competition.
NEF Innovation Director Dr Bamise Olanrewaju said the competition attracted 107 entries from 36 tertiary institutions across 20 states.
The University of Lagos team, Coolbox, led by Samuel-Rotua Richard, emerged as the overall winner and also received the Public Vote award, while AutaNet, led by Fadekemi Haruna, and DP2P Energy Trading, led by Muhammad Abdulraheem, both from the Federal University of Technology, Minna, finished second and third respectively.
Opening the conference, NEF Chairman Dr Oluwole Daniel Adeuyi said Africa’s long-term prosperity would depend on its ability to build competitive industries, expand manufacturing, promote innovation and create greater value from its abundant natural resources.
The issues
Nigeria continues to face a significant gap between available electricity generation capacity and the amount of power delivered to consumers. While investments have increased installed and available capacity over the years, constraints across transmission, distribution and market operations have left substantial generation stranded. Industry stakeholders argue that improving operational efficiency, promoting innovation and expanding local manufacturing are essential to unlocking the full economic value of the country’s energy resources.
What’s being said
“As of May 2026, Nigeria had an available generation capacity of 7,311MW, but the average dispatched generation was just 4,222MW.” — Abdu Bello, Managing Director/CEO, NISO
“Reliable power is the entry ticket to industrial growth.” — Abdulrahman Yinusa, Group Managing Director, Odu’a Investment Company Limited
What’s next
NISO is expected to focus on improving grid operations and market efficiency to reduce stranded generation capacity, while stakeholders continue pushing for greater investment in local manufacturing, innovation and value addition to support sustainable industrial growth.
Bottom line
Nigeria’s power sector has substantial untapped generation capacity, and industry leaders say unlocking it through operational reforms, innovation and stronger industrial linkages will be critical to driving economic growth and reducing energy losses.
