These are the entities that control Nigeria’s power sector value chain

The sector underwent a significant transformation in 2013 when the government privatized power generation and distribution companies while retaining control of transmission.

Understanding the major stakeholders in the industry, from power-generating companies (GenCos) to transmission and distribution companies (DisCos), alongside regulatory bodies provides insight into the sector’s structure and the factors shaping electricity supply in Nigeria.

At the heart of power generation are the GenCos, which include private companies that operate thermal and hydroelectric power plants.

These companies generate electricity and supply it to the Transmission Company of Nigeria (TCN), the sole government-owned entity responsible for transmitting power across the country.

The Distribution Companies (DisCos) then receive electricity from the transmission grid and deliver it to homes, businesses, and industries.

Overseeing the sector is the Nigerian Electricity Regulatory Commission (NERC), which enforces policies, tariffs, and service regulations.

Nigeria’s electricity generation relies primarily on gas-fired and hydroelectric power plants.

As of 2023, the country had 29 grid-connected generation companies (GenCos), with 25 relying on gas and only four utilizing hydropower.

These GenCos supply electricity to the national grid, playing a crucial role in the country’s energy landscape.

They were originally owned by the three tiers of government and managed by the Niger Delta Power Holding.

However, some of them have since been sold to private companies, some under concessionaires, while others remain under the control of the government through NDPHC.

Below is the full list of Nigeria’s power plants and their ownership status: 

Electricity distribution in Nigeria is handled by Distribution Companies (DisCos), which are responsible for delivering power to homes, businesses, and industries.

During the 2013 power sector reform, eleven successor DisCos were privatized, with 60% of their equity sold to private investors, while the government retained a minority stake.

During the 2013 power sector reform, eleven successor DisCos were privatized, with 60% of their equity sold to private investors, while the government retained a minority stake.

These DisCos are all connected to the national transmission network, receiving electricity from the Transmission Company of Nigeria (TCN) and distributing it across their respective coverage areas.

In addition to the eleven privatized DisCos, Aba Power Limited Electric (APLE) operates as an independent distribution company.

It was carved out of the Enugu Electricity Distribution Company (EEDC) and licensed by the Nigerian Electricity Regulatory Commission (NERC) to distribute electricity within a ring-fenced network in Abia State.

This means APLE serves a specific area with a dedicated power supply, ensuring improved service delivery to commercial and residential consumers in the region.

Electricity Distribution Companies and their ownership statuses by the end of 2023 (some of them may have changed ownership).

Despite the progressive transformation of the power sector, the national grid does not receive enough power from generation plants and, therefore, underserves the Nigerian populace.

The NERC acknowledges that there is a huge disparity in electrification between urban and rural areas, with the latter having only 40% electrification as of the end of 2023.

However, renewable energy, particularly solar, is playing a significant role in bridging the gap.

The Nigeria Electrification Programme (NEP) of the Rural Electrification Agency is providing energy access to rural households, small businesses, educational institutions, and health facilities through solar-powered mini-grids, Standalone Solar Home Systems (SHS), rooftop solar, and captive power plants.

Last year, the Minister of Power, Bayo Adelabu, said Nigeria needs $10 billion in private investment in the power sector over the next five to 10 years to achieve a 24-hour power supply for the majority of the population.