Manufacturing and Energy

Electricity Demand in Nigeria Increased in the fourth quarter of 2023 

The recent electricity report from the National Bureau of Statistics (NBS) highlighted an increase in electricity demand in Nigeria during Q4 2023. The total number of customers rose to 12.12 million, marking a 3.46 percent increase from the previous quarter. On an annual basis, the total number of customers grew by 9.59 percent compared to the end of 2022.

This surge in customer numbers translated to a revenue increase from N232.32 billion to N294.95 billion, representing a 26.96 percent rise. Additionally, revenue collected by DISCOS also saw an uptick from N260.16 billion in Q3 2023 to N294.95 billion in Q4 2023, indicating a 13.37 percent increase. However, the number of metered customers decreased by 1.32 percent quarter-on-quarter due to challenges in meter distribution and installation.

Despite this, electricity supply increased by 12.2 percent in Q4 2023, reaching 6,432 Gwh, up from 5,732 Gwh in Q3 2023. The growing electricity demand can be attributed to the expanding population and increasing number of businesses, particularly SMEs, leading to higher electricity consumption. The inconsistent electricity supply in the country, with multiple grid collapses in recent years, has had adverse effects on production processes and foreign investment.

To tackle this issue, the government should prioritize the implementation of measures outlined in the 2023 Electricity Act, especially those aimed at supporting states in generating and regulating their own electricity.

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