In a move to prioritize domestic electricity supply, the Federal Government of Nigeria has announced a significant reduction in power exports to its neighboring countries of Niger Republic, Benin Republic, and Togo.
The Nigerian Electricity Regulatory Commission (NERC), the industry's regulatory body, has directed the System Operator (SO), a division of the Transmission Company of Nigeria, to limit power delivery to the three neighboring countries to just 6% of the total grid electricity.
The directive, outlined in a document titled 'Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,' was jointly signed by NERC Chairman, Sanumi Garba, and Vice Chairman, Musiliu Oseni, on April 29, 2024. The order took effect on May 1, 2024 and is set to last for a period of six months, subject to review.
In the order, NERC expressed concerns over "sub-optimal grid dispatch practices" that have impacted the ability of Distribution Companies (DisCos) to meet their service tariff commitments to end-users within Nigeria. The regulator noted that the reliance on limiting DisCos' load off-take while prioritizing international off-takers and Eligible Customers has proven to be neither efficient nor equitable.
NERC stressed that many off-takers contracted bilaterally by Generation Companies (GenCos) have been exploiting this prioritization, exceeding their contracted levels during peak operations without penalties.
As an interim measure, the order calls on the System Operator to develop and present a pro-rata load-shedding scheme within seven days to ensure equitable load allocation to all off-takers, including DisCos, international customers, and eligible customers, during generation drops or grid imbalances.
The directive also places a cap of 10% on the aggregate capacity that can be nominated by a generating plant to service international off-takers, unless a derogation is granted by the commission.
The regulator has further urged the System Operator and Transmission Company of Nigeria to immediately initiate the installation of integrated Internet of Things (IoT) meters at all off-take and delivery points to provide real-time visibility of aggregate offtake by grid customers, with the installation to be completed within three months.
This move by the Federal Government is aimed at enhancing the domestic electricity supply and ensuring a more equitable and transparent distribution of the country's power resources.