Nigeria’s electricity production index fell by 1.64% in Q4 2024 – CBN 

This is according to data from the Central Bank of Nigeria (CBN).

This marks a reversal from the 5.55% growth recorded in the third quarter of 2024 (Q3 2024), underscoring persistent challenges in the country’s power sector.

According to the data, the Nigerian economy witnessed widespread expansion in the fourth quarter of 2024 (Q4 2024), with 21 out of 22 subsectors recording positive growth.

On a quarter-on-quarter (q-o-q) basis, however, the subsector showed signs of recovery, as the index rose by 22.50% compared to a significant decline of 49.46% in the previous quarter.

As a result, the average estimated electricity generation rose by 2.34% to 4,206.50 megawatts per hour (MW/h) from 4,110.47 MW/h in Q3 2024. Similarly, electricity consumption saw a modest increase of 2.63%, reaching 4,105.66 MW/h from 4,000.24 MW/h in the preceding quarter.

The broad-based economic expansion in Q4 2024 can be attributed to several factors, including improved business confidence, increased consumer spending, and enhanced performance in key sectors such as agriculture, manufacturing, and telecommunications.

The data also stated that the non-oil sector, particularly fintech and digital services, also played a significant role in driving economic activities.

Despite the slight improvement in quarter-on-quarter electricity output, the power sector continues to grapple with infrastructural deficiencies, liquidity issues, and transmission bottlenecks.

The power sector is characterized by severe liquidity challenges, with over N4 trillion owed to GenCos, which has hindered their ability to operate efficiently.