CBN: Nigeria Generates N29.95 Billion From Exportation of Electricity

The Central Bank of Nigeria data report has revealed that Nigeria generated a sum of $72 million from electricity export in 2021, a naira equivalent of N29.95 billion, using the official exchange rate of N416/$1.

This is said to be its worst electricity export income in 11 years.

The amount generated in the review year represents a 14.5% decline compared to $84.26 million recorded in the previous year and 49.4% drop as opposed to the $142.3 million received as payment in 2019.

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Nigeria earned $543.11 million from electricity exports to countries like Niger, Benin, and Togo in the past five years.

As a result of recurrent grid collapses, which caused blackouts in some areas of the country, a total energy generation plummeted to 37,964.93MWh on Saturday, 9th April 2022.

The World Bank says 85 million Nigerians do not have access to grid electricity, representing about 43% of the country’s population, which effectively makes Nigeria the country with the largest energy access deficit in the world, yet  still carry out cross-border electricity trades.

The World Bank also noted that the lack of reliable power has resulted in an annual economic loss estimate of $26.2 billion, representing about 2% of the national GDP.

Furthermore, the World Bank Doing Business Report, places Nigeria at 171 out of 190 countries in getting electricity, which is seen as one of the major constraints for the private sector.

According to information from Power Africa, Nigeria is only able to dispatch around 4,000 MW, which is insufficient for a country of over 200 million people.

It added that Nigeria is endowed with large oil, gas, hydro, and solar resources, and it has the potential to generate 12,522 MW of electric power from existing plants.