Nigeria has lost more than ₦2.376 trillion in capacity payments over the past 12 years as persistent grid inefficiencies have left more than 3,100 megawatts (MW) of available electricity stranded, depriving Africa’s largest economy of the reliable power needed to drive industrialisation and economic growth.
The revelation by the Nigerian Independent System Operator (NISO) underscores the huge economic burden of an electricity sector where billions of naira are spent maintaining generation capacity that cannot be evacuated to consumers, even as manufacturers continue to grapple with high production costs driven by inadequate power supply.
Speaking at the 11th Nigeria Energy Forum (NEF 2026) in Lagos, NISO’s Managing Director and Chief Executive Officer, Abdu Bello, disclosed that Nigeria had incurred over ₦2.376 trillion in capacity payments since 2015 because significant portions of electricity generated could not be transmitted through the national grid.
Represented by the organisation’s General Manager, Research, Deji Ojo, Bello said the country’s available generation capacity stood at 7,311MW as of May 2026, while average electricity dispatched was only 4,222MW, leaving approximately 3,162MW stranded.
The stranded capacity represents more than 43 per cent of Nigeria’s available electricity generation, highlighting the scale of inefficiencies across the power value chain.
You will discover that about 3,162MW is stranded capacity and is not being converted into economic use,” Bello said.
He explained that the establishment of NISO marks a strategic shift from expanding electricity infrastructure to improving operational efficiency, market performance, grid reliability and industrial competitiveness.
According to him, the organisation’s principal mandate is to ensure that existing electricity generation assets are fully utilised to support economic productivity rather than remaining idle.
The disclosure comes at a time when Nigeria is seeking to accelerate industrial growth through improved energy access, with manufacturers consistently identifying unreliable electricity as one of the biggest obstacles to competitiveness.
Stakeholders at the forum argued that unlocking stranded generation capacity could deliver immediate economic benefits without the huge capital expenditure associated with constructing new power plants.
Group Managing Director of Odu’a Investment Company Limited, Abdulrahman Yinusa, represented by Executive Director, Investment and Business Development, Yemi Ajao, described reliable electricity as the foundation of industrial transformation.
said Nigeria possesses abundant raw materials capable of supporting industrial growth but questioned whether the country would continue exporting raw commodities instead of processing them into finished products with higher economic value.
Chief Executive Officer of All On, Caroline Eboumbou, represented by Senior Grant Associate, Jadesola Rawa, said innovation and entrepreneurship would play a decisive role in shaping Nigeria’s energy future.
She disclosed that three alumni of the Tertiary Institutions Student Energy Challenge (TIEC) had received additional support through the organisation’s innovation hub to strengthen their businesses and commercialise their clean energy solutions.
Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Omatsola Ogbe, represented by General Manager, Monitoring, Suleiman Ozimede, stressed the importance of local manufacturing in achieving sustainable economic development.
He urged Nigerians to utilise locally manufactured products and maximise indigenous human and material resources to deepen industrial capacity.
Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Khalil Halilu, said the agency was building an integrated ecosystem where innovation would be conceived, manufactured and commercialised locally
hief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, represented by Senior Adviser on Strategy, Abba Hayatudeen, said Nigeria’s future prosperity would be determined by the number of businesses empowered and industries revived through sustainable energy access.
National Coordinator of the Global Environment Facility Small Grants Programme (GEF SGP), Ibironke Olubamise, said the programme continues to finance community-based initiatives aimed at addressing environmental challenges while improving livelihoods.
Speaking at the event, Co-Chair of the Nigeria Energy Forum, Adekunle Makinde, said the platform has evolved into a major vehicle for connecting young innovators with investors capable of scaling commercially viable clean energy technologies.
He noted that before the initiative, many innovative projects developed by students ended up abandoned after graduation, but the forum now provides a pathway for commercialisation.
NEF Innovation Director, Dr Bamise Olanrewaju, disclosed that the latest edition of the All On TIEC 4.0 attracted 107 project submissions from 36 tertiary institutions across 20 states.
She said Coolbox, developed by Samuel-Rotua Richard of the University of Lagos, won both the overall first prize and the public vote, while AutaNet, led by Fadekemi Haruna, and DP2P Energy Trading, led by Muhammad Abdulraheem, both from the Federal University of Technology, Minna, emerged second and third, respectively.
Chairman of the Nigeria Energy Forum, Dr Oluwole Daniel Adeuyi, said Africa’s long-term prosperity would depend on its ability to transform abundant natural resources into competitive industries capable of creating jobs, boosting exports and sustaining economic growth.
“The future belongs to nations that add value, manufacture competitively, innovate boldly and build resilient industries,” he said.
