The Nigerian Electricity Regulatory Commission (NERC) has taken decisive steps to prioritize power availability to Nigerian consumers by ordering the capping of power supply to cross-border customers in Benin Republic, Niger, and Togo.
This move aims to ensure that Nigerians have access to a more reliable and consistent power supply. The directive, outlined in an interim order titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters,‘ is set to last for six months initially.
NERC’s interim order, signed by the commission’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni, comes into effect from May 1, 2024. It directs the System Operator (SO), a department within the Transmission Company of Nigeria (TCN), to limit power delivery to Nigeria’s neighbors to no more than six percent of total grid electricity at any given time.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The regulatory agency expressed concerns about sub-optimal grid dispatch operations that have compromised Distribution Companies (Discos) ability to meet their service obligations under the Service Based Tariff (SBT). It highlighted the need for a more equitable distribution of power allocation among various off-takers, including Discos, international customers, and eligible customers.
“The commission hereby orders as follows: The system operator shall develop and present to the commission for approval within seven days from the issuance of this order a pro-rata load-shedding scheme that ensures equitable adjustment to load allocation to all off-takers — Discos, international customers, and eligible customers — in the event of a drop in generation and other under-frequency related grid imbalances necessitating critical grid management.
“The system operator shall implement a framework to log and publish hourly readings and enforce necessary sanctions for violation of grid instructions and contracted nominations by off-takers in line with the grid code and market,” it stated.
Moreover, NERC emphasized the importance of transparency and accountability in grid operations, calling for the implementation of Standard Operating Procedures (SOPs) to improve the fairness and efficiency of service delivery. The commission instructed the system operator to develop a pro-rata load-shedding scheme to ensure equitable adjustments to load allocation during grid imbalances.
“The system operator shall ensure that the maximum load allocation to international off-takers in each trading hour shall not be more than six percent of the total available grid generation.
“The aggregate capacity that can be nominated by a generating plant to service international off-takers shall not be more than 10 percent of its available generation capacity unless in exceptional circumstances a derogation is granted by the commission.
“The system operator shall henceforth cease to recognise any capacity addition in bilateral transactions between a generator and an off-taker without the express approval of the commission,” it added.
Additionally, NERC mandated the installation of integrated Internet of Things (IoT) meters at off-take and delivery points to provide real-time visibility of aggregate power consumption. This measure aims to enhance the monitoring and enforcement of grid instructions and contractual obligations.
In a related development, the Minister of Power, Chief Adebayo Adelabu, revealed plans by the federal government and the Nigerian Sovereign Investment Authority (NSIA) to address the country’s significant electricity metering gap. With approximately seven million unmetered consumers, the government plans to inject N750 billion in capital annually, supplemented by N250 billion in debt financing from NSIA, to accelerate meter acquisition initiatives.
He said that out of nearly 13 million registered electricity consumers at present; slightly over five million of them are metered customers.
“The target that we have is that within four to five years, we should close the gap, which means that a minimum of two million meters must be installed under the Presidential Metering Initiatives every year,’’ Adelabu said on Saturday in Lagos during his visit to Femadec Group, a local electricity meter manufacturing company. Earlier that day, he inaugurated the 63MVA, 132/33kV Mobile Substation deployed to Ajah as part of Phase One of the Presidential Power Initiative (PPI).
These moves follow recent developments in Nigeria’s power sector, including increased generation capacity and tariff adjustments, said to have sparked renewed investor interest. The completion of projects like the Zungeru Hydro Electric Power Plant in Niger State has contributed to a rise in power generation, from 4,200MW to 4,800MW, signaling positive momentum for the sector.