Business

Nigeria relies on nine plants for 71% power

Published

4 years ago

August 23, 2022

Egbin power plant

Findings have shown that just nine out of 26 power plants connected to the national grid are responsible for as high as 71 per cent of electricity generation in the country.

The plants are Egbin, Kainji, Azura-Edo IPP, Jebba, Delta, Shiroro, Odukpani, Afam VI and Geregu with a minimum share of 5.76 per cent each.

Statistics obtained from the Nigerian Electricity Regulatory Commission, NERC, on the latest report, ‘State of the Industry NERC Annual Report 2020’, revealed that over-reliance of the grid on the energy supplied by just nine power plants out of 26 might pose a risk to the industry.

This was because downtime in any of them might result in grid instability if there was no adequate reserved capacity from other plants to timely offset adverse impact of any sudden loss of generation from any of the 9 plants, NERC said.

According to the report, the nine power plants accounted for 71.80 per cent of the total electric energy generated in 2020.

Due to its size and availability, Egbin power plant accounted for the highest share,13.54 per cent of the total energy output, followed by Kainji hydropower plant which accounted for 8.31 per cent energy share. Azura Edo, Jebba, Shiroro and Delta were also among the top-six contributors to generate output during 2020.

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During the same period, Gbarain power plant accounted for the least share of output contributing 0.24 per cent.

Compared to 2019, the reliance on the aforementioned nine power plants increased by 4.54 percentage points as they only accounted for 67.26 per cent of total generation in 2019.

The NERC said it had commenced the process of gradually activating the industry contracts to provide certainty to the minimum volume of energy expected of each generating plant and properly allocate risks among the industry operators.

This, the Commission said, was expected to lead to incremental growth in power availability and utilisation.

During the year 2020, the available generation capacity of the 26 active plants stood at 6,107MW while the average generation was 4,054MWh, about 5.97 per cent higher than the generation level in 2019.

The industry recorded the highest daily peak generation of 5,520MWh on 30th October 2020.

Nigeria currently generates just a little over 4000MW despite promise to hit at least 5000MW from July 1..

Experts say the country needs at least 30, 000MW to reach sufficiency.

The NERC said complete resolutions of the technical and operational challenges in the Nigerian Electricity Supply Industry, NESI, remained a top priority.

“We are currently working to ensure that the Payment Assurance Facility for ensuring that GenCos honour their obligation to gas suppliers comes to an end. The Commission is finalising an Escrow Arrangement for the industry that will provide payment security for GenCos and gas suppliers pending full activation of contract obligations,” it said.

The average load factor across all plants stood at 61.74 per cent in 2020, indicating that an average power plant operating in the year 2020 had 61.74 per cent of its available capacity dispatched by the System Operator, SO. This represents a slight increase of 1.06 percentage points from the 60.68 per cent recorded in 2019.

Kanji, Jebba and Shiroro hydro plants, respectively, had 83.60 per cent, 78.73 per cent and 67.59 per cent of their available capacities dispatched by the SO and were respectively first, third and eight plants with the highest dispatch rates.

Thus, NERC said the dispatch rates of the three hydro plants complied with its Order NERC/182/2019, declaring hydropower plants as “must-run” by SO.

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The Order was to ensure that hydro plants were efficiently dispatched, given their low tariffs and in consideration of safety associated with spilling of water from dams during the rainy season.

In 2020, Azura power plant had a load factor of 79.74 per cent while Sapele NIPP had the least dispatch rate of 33.71 per cent.

A report by The PUNCH in July had chronicled the drop in the combined generation capacity of the country’s 26 power plants by 70 per cent.

Data had revealed that capacity of the plants dropped from a total of 13, 461MW to 4,022MW as of when they were last tested in July 2021.

Spokesperson for the GenCos, Joy Ogaji, declined comments on the perennial low power generation by the firms.

Metering Expert, Sesan Okunade, told The PUNCH that power generation was not what Nigeria should be battling to solve at the moment.

“We have generated more than this before that have been sold to neighboring countries. The reason for system collapse is the excess kilowatt not being collected by Discos due the technical and commercial loss.”

“Good connection policy and investment in transformers to replace the obsolete one will assist in what is being generated to be effectively received by Discos,” he added.

The National President, Electricity Consumers Association of Nigeria, Barr. Chijioke James, said Nigerian consumers were told years ago that the generation capacity was over 6000MW.

“We are therefore surprised that in 2022 NERC is promising delivery of 5000MW by July 1st.

This does not give consumers confidence that the current situation will change for the better soonest,” he said.

Experts have called on the government to fully embrace other sources of energy to include renewables.

Executive Director of a solar-based company, Gennex Technologies, Toyin Ilo, said it was high time the Federal Government gave full support to the solar industry to thrive.

Business

Fuel Relief: Dangote Reverses Petrol Price Hike, Drops PMS to ₦1,200

Published

15 hours ago

April 8, 2026

Trends Admin

Fuel Relief: Dangote Reverses Petrol Price Hike, Drops PMS to ₦1,200

The Dangote Petroleum Refinery & Petrochemicals has reversed its recent petrol price increase, reducing the ex‑gantry price of Premium Motor Spirit (PMS) — commonly known as petrol — to ₦1,200 per litre amid a sharp decline in global crude oil prices triggered by easing geopolitical tensions.

The adjustment marks a ₦75 reduction from the previous price of ₦1,275 per litre, which had been introduced only days earlier due to rising crude oil benchmarks. A senior refinery official confirmed the rollback, noting that international oil market fluctuations directly influence domestic fuel pricing.

“The adjustment aligns with global market trends,” the official said, adding that geopolitical developments in the Middle East, including a temporary ceasefire agreement between the United States and Iran, contributed to the drop in crude oil prices. Brent crude fell by 13.28% to $94.76 per barrel, while US West Texas Intermediate dropped by 14.72% to $96.31 per barrel, easing pressure on domestic fuel costs.

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In a statement, the refinery clarified that no new petrol price increase has been implemented, confirming that the gantry price remains at ₦1,200 per litre and the coastal price at ₦1,153 per litre. The company assured the public of its commitment to steady fuel supply across domestic and regional markets.

The reduction comes amid ongoing volatility in Nigeria’s downstream petroleum sector, influenced by foreign exchange fluctuations, supply chain challenges, and global oil price swings. The Dangote refinery, which began operations in September 2024, has become a dominant player in Nigeria’s fuel market, significantly affecting pricing and supply patterns nationwide.

Analysts note that while the rollback is welcomed by consumers, retail petrol prices may still vary depending on how quickly marketers adjust pump prices, distribution logistics, and exchange rate considerations. The refinery’s responsiveness underscores the integration of Nigeria’s fuel pricing with international market realities following deregulation of the downstream sector.

Fuel Relief: Dangote Reverses Petrol Price Hike, Drops PMS to ₦1,200

Business

Oil prices tumble after US–Iran deal, Nigeria’s fuel cost remains high

Published

22 hours ago

April 8, 2026

Trends Admin

Oil prices tumble after US–Iran deal, Nigeria’s fuel cost remains high

Global oil markets tumbled and equities surged on Wednesday after the United States and Iran struck a fragile, conditional ceasefire deal that includes reopening the critical Strait of Hormuz shipping route.

Brent crude plunged by 13 per cent to $94.80 a barrel, while US-traded crude dropped more than 15 per cent to $95.75—marking one of the sharpest declines since the conflict erupted on 28 February.

Despite the drop, prices remain significantly above pre-war levels of around $70 per barrel.

In Nigeria, this sigh of relief is yet to reflect in the pump price of fuel. Indeed, the last report as of Tuesday night was an increase of five per cent by Dangote Petroleum Refinery in its gantry price of petrol, pushing it to N1,275 per litre, from N1,200 per litre.

The ceasefire—set to last two weeks—offers temporary relief to global energy markets rattled by weeks of disruption. The Strait of Hormuz, a vital artery for global oil shipments, had been under threat after Iran warned it could target vessels in retaliation for US and Israeli airstrikes.

The easing of tensions sent stock markets rallying across Asia. Japan’s Nikkei 225 jumped 5 per cent, South Korea’s Kospi surged nearly 6 per cent, while Hong Kong’s Hang Seng rose 2.8 per cent. Australia’s ASX 200 also gained 2.7 per cent, with US futures pointing to a strong opening on Wall Street.

Announcing the deal on social media, former US President Donald Trump said Washington would suspend military action for two weeks—on the condition that Iran ensures the “complete, immediate, and safe” reopening of the Strait.

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Iran’s Foreign Minister, Abbas Araghchi, signalled Tehran’s willingness to comply, stating that a ceasefire would hold if attacks on Iran stop, adding that safe passage through the strait “will be possible.”

A report by BBC News quotes analysts as saying the move reflects growing pressure on both sides to avoid further economic fallout. Escalation risked driving energy prices even higher, potentially triggering what market watchers describe as a “self-inflicted economic wound.”

With the ceasefire in place, more oil tankers stranded near the strait are expected to resume transit, offering short-term relief. However, experts caution that a full recovery in energy supply remains distant.

Infrastructure damage across the Middle East could take months—if not years—to repair. Iran’s retaliatory strikes have hit key energy facilities, with estimates suggesting reconstruction could exceed $25 billion.

The conflict has already left deep scars on global energy supply chains. In mid-March, strikes on Qatar’s Ras Laffan industrial hub—responsible for roughly a fifth of global liquefied natural gas—cut export capacity by 17 per cent, with full repairs expected to take up to five years.

Asia has borne the brunt of the crisis, given its heavy reliance on Gulf energy supplies. Countries like India, Malaysia and the Philippines scrambled to secure safe shipping routes, while China confirmed that some of its vessels continued to pass through the strait despite the risks.

The economic strain has been severe. The Philippines, which depends on the Middle East for 98 per cent of its oil, declared a national energy emergency after fuel prices more than doubled.

Airlines across the region have also raised fares and cut routes as jet fuel costs soared.

While the ceasefire offers a breather, analysts warn it is far from a lasting solution. Energy production is unlikely to fully rebound until a durable peace agreement is secured—and even then, recovery will take time.

For now, markets are celebrating a pause in hostilities. But beneath the optimism lies a fragile reality: the global energy system remains on edge.

Oil prices tumble after US–Iran deal, Nigeria’s fuel cost remains high

Business

BREAKING: Dangote Refinery Raises Petrol Price across Nigeria

Published

23 hours ago

April 8, 2026

Trends Admin

BREAKING: Dangote Refinery Raises Petrol Price across Nigeria

The Dangote Petroleum Refinery has again increased the price of petrol across Nigeria, pushing its gantry price of Premium Motor Spirit (PMS) to ₦1,275 per litre, up from ₦1,200 per litre.

The latest adjustment represents a ₦75 increase (about 5%), reversing a recent period of relative stability in fuel prices and reinforcing concerns about rising cost of living.

The price hike comes amid renewed volatility in the global oil market, with crude benchmarks climbing sharply. Brent crude hovered around $105 per barrel, while West Texas Intermediate (WTI) traded near $110 per barrel, driven by heightened geopolitical tensions.

A major trigger for the surge has been escalating uncertainty in the Middle East, following strong warnings from US President Donald Trump over a potential conflict involving Iran. The situation has raised fears of global supply disruptions, which typically push up crude prices and, by extension, refined fuel costs.

MRS Filling Station

Industry analysts say the Dangote refinery’s pricing remains closely tied to international crude benchmarks, meaning local pump prices are still heavily influenced by global market dynamics despite increased domestic refining capacity.

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The development comes just weeks after the refinery reduced petrol prices on March 27, 2026, when global crude prices softened. However, the recent rebound in oil prices has quickly erased those gains, underscoring the volatility of the energy market.

Despite the increase, President of the Dangote Group, Aliko Dangote, moved to reassure Nigerians and the wider African market about product availability.

“What I can do is assure Nigerians and most of West Africa, Central Africa, and East Africa that we have the capacity to supply them,” Dangote said during a recent tour of the facility.

His assurance comes as the refinery continues to ramp up production and expand its footprint across Africa. The plant, with a capacity of 650,000 barrels per day, is increasingly becoming a key supplier of refined petroleum products across the continent.

However, analysts caution that while supply may improve, price stability remains uncertain. They note that persistent global tensions, fluctuating crude prices, and foreign exchange pressures could continue to drive frequent price adjustments.

The latest increase is expected to have a ripple effect across the Nigerian economy, with likely impacts on transport fares, food prices, and inflation, as businesses adjust to higher energy costs.

Market watchers also warn that unless crude prices ease or government intervention—such as pricing support or subsidies—is introduced, Nigerians may continue to face elevated petrol and diesel prices in the near term.