CBN Says Nigeria’s Electricity Export to Neighbouring Countries Dropped to $155.56 Million
- The Central Bank of Nigeria (CBN) has said Nigeria’s earnings from electricity export have crashed
- The apex bank stated that Nigeria lost about $58.1 million in one year as a result of grid collapses
- Nigeria exports electricity to Togo, Niger, and Benin as a means of foreign exchange earnings
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The Central Bank of Nigeria (CBN) says Nigeria’s electricity export has crashed by $58.1 million in one year.
Analysis from the CBN indicates that the value of Nigeria’s electricity export was N213.66 million in 2021 but declined to $155.56 in 2022, representing a 27% drop in earnings from crude oil exports.
Source: Getty Images
Nigeria exports electricity to Togo, Niger, and Benin Republic
The development also means that Nigeria earned about $369.22 million in two years from electricity exports.
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According to the Managing Director of Transmission Company of Nigeria (TCN), Sule Abdulaziz, Nigeria has been exporting electricity, providing an avenue to earn forex for national development.
He said:
“Nigeria, through TCN, had been exporting electricity to Niger, Benin, and Togo under a country-to-country arrangement.”
Punch reported that Nigeria had suffered a grid collapse, affecting electricity output in 2022.
Nigeria’s power generation capacity declined by 981.8 megawatts between 2015 and 2022 despite the Nigerian government's N1.51 trillion intervention in the sector.
Reports say the national grip collapsed about 98 times under ex-president Muhammadu Buhari.
A Power Generation Document Trend from 2013 to 2022 shows that while power generation capacity was around 6,616.28MW in 2015, it declined to 5,634.47MW in 2022.
Also, the document stated that Nigeria earned about N1.76 trillion between 2015 and August 2022 despite the deplorable state of power in the country.
Nigeria's various interventions in the power sector
The Nigerian government had embarked on several intervention projects in the power sector to overhaul the industry.
On September 2014, the Nigerian government announced an N213 billion loan to power firms.
The federal government also approved N701 billion as a power guarantee fund for the Nigerian Bulk Electricity Trading Plc to pay for the electricity produced by generation firms for two years.
It also made funds available to tackle the monthly liquidity challenges faced by GenCos due to the inability of power distributors to meet their obligations regarding remittances to the sector.
The Nigerian government also provided the sector with another N600 billion payment guarantee facility from the CBN in 2019.
Top Nigerian billionaires, others who own electricity companies, and cost of investment, 3 governors Included
Legit.ng reported that the recent spat between two Nigerian billionaires regarding the purchase of Transcorp Power, owned by Tony Elumelu, has brought who controls the country's electricity levers to the fore.
In a recent statement, Femi Otedola, the Chairman of Geregu Power, detailed how he wanted to invest in Transcorp Power to prop up the company's potential in the stock market.
In the statement, Otedola revealed how he was bought out by Elumelu, who might have feared a hostile takeover.
Source: Legit.ng
