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According to the Nigerian Electricity System Operator on July 16, 2020, nine of the country’s 27 power plants were idle, leaving a total generation capacity of 2,079.1 megawatts stranded. The system operator put the nation’s installed generation capacity at 12,910.40MW; available capacity at 7,652.60MW; transmission wheeling capacity at 8,100MW; and the peak generation ever attained at 5,375MW.

Total power generation in the country stood at 3,269.6MW, up from 3,074.6MW on June 15. Only 58% of Nigerians have access to electricity and an estimated 80% of those with access use an alternative source of electricity supply due to reliability concerns.

The power sector lost an estimated N2.01 billion on July 14, 2020, due to constraints from the insufficient gas supply, distribution, and transmission infrastructure. The shutdown of the power plants was due to these factors including low load demand by the distribution companies and rupturing of the gas pipeline, among others. Due to the unstable power supply, companies in Nigeria are struggling to remain in operation.

The high cost of production, exacerbated by the high costs incurred from powering generators places a huge strain on production companies.

Electricity is a vital component of the industrialisation process and the constant power challenges in Nigeria have to be solved to aid socioeconomic development and hence industrialization.


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