In a move aimed at addressing Nigeria’s persistent power generation challenges, the federal government has recently announced the issuance of 13 new licenses for off-grid, embedded power, and independent electricity distribution projects. This development, disclosed in a sectoral report by the Nigerian Electricity Regulatory Commission (NERC), is poised to inject a cumulative 40.9 megawatts into the national grid.

According to the report, Daybreak Power Solutions Limited secured eight licenses for diverse off-grid power generation ventures across Lagos, Abia, Borno, Kano, Oyo, and Abuja. Similarly, the Ekiti Independent Power Project obtained a license for a gas-fired 5MW embedded power project in Ekiti State, while Olokiti Power Distribution Limited received an Independent Electricity Distribution Network license for operations in Ekiti State.

Furthermore, Ember Power Limited was granted an electricity trading license, and Island Power Limited obtained a license for the development of a 10MW embedded gas-fired power project in Lagos. Additionally, the Energy Company of Nigeria Limited received an Independent Electricity Distribution Network license for operations in Lagos State.

The NERC report emphasized the issuance of “one new license for Independent Electricity Distribution Network, one new license for trading, three off-grid generation licenses, one embedded generation, and one IEDN license.” It clarified that certain activities not mandating licenses but needing authorization from the commission, such as off-grid captive power generation and mini-grid development, undergo the permit issuance process post a thorough review of relevant applications.

This significant development arrives at a time when Nigeria’s electricity generation fluctuates between 3,500MW and 5,000MW, insufficient for the country’s over 200 million populace, and characterizing it as below par for the continent’s largest economy.