Nigeria’s Power Generation Plummet By 1.64%

The Nigerian electricity sector experienced a slowdown in the fourth quarter of 2024 (Q4 2024), with the electricity production index decreasing by 1.64% compared to the same period last year.

According to the Central Bank of Nigeria (CBN), this decline contrasts sharply with the 5.55% growth observed in the third quarter of 2024 (Q3 2024).

Naija News understands that average electricity generation in Nigeria saw a rise of 2.34%, increasing to 4,206.50 megawatts per hour (MW/h) from 4,110.47 MW/h in Q3 2024.

In a similar vein, electricity consumption experienced a slight uptick of 2.63%, reaching 4,105.66 MW/h, up from 4,000.24 MW/h in the previous quarter.

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During this period, the Nigerian economy demonstrated broad growth in Q4 2024, with 21 out of 22 subsectors reporting positive performance.

On a quarter-on-quarter (q-o-q) basis, the electricity subsector showed signs of recovery, with the index increasing by 22.50%, a notable improvement from the substantial decline of 49.46% seen in the prior quarter.

The overall economic growth in Q4 2024 can be attributed to various factors, including heightened business confidence, increased consumer spending, and stronger performance in critical sectors such as agriculture, manufacturing, and telecommunications.

Government fiscal and monetary policies aimed at controlling inflation and encouraging investment also played a significant role in fostering this positive trend.

The CBN noted that the improvement in electricity generation was primarily due to better gas supply to thermal power plants and the ongoing implementation of the Siemens Power Project, which has positively influenced power generation, transmission, and distribution systems.

Additionally, the oil and gas sector benefited from relatively stable crude oil prices and enhanced domestic production, contributing positively to overall economic performance.

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The data further indicated that the non-oil sector, especially fintech and digital services, significantly contributed to stimulating economic activities.