The Nigerian electricity sector experienced a slowdown in the fourth quarter of 2024, with the electricity production index falling by 1.64% year-on-year, according to data from the Central Bank of Nigeria.
This marks a notable reversal from the 5.55% growth recorded in the third quarter (Q3 2024).
Despite the decline in production, electricity generation showed a slight improvement. The average estimated generation rose by 2.34%, increasing to 4,206.50 megawatts per hour (MW/h) in Q4 2024, up from 4,110.47 MW/h in Q3 2024.
Likewise, electricity consumption saw a modest rise, climbing by 2.63% to 4,105.66 MW/h, compared to 4,000.24 MW/h in the previous quarter.
However, the broader economic context paints a more positive picture. While the electricity sector faced challenges, Nigeria’s economy showed strong growth in Q4 2024, with 21 out of 22 sectors recording positive performance.
The expansion was driven by factors such as increased business confidence, higher consumer spending, and better outcomes in major sectors like agriculture, manufacturing, and telecommunications.
On a quarter-on-quarter basis, the electricity sector showed signs of recovery, with the index rising by 22.50% in Q4 2024, a stark contrast to the 49.46% decline seen in the previous quarter.
This recovery suggests that the sector is slowly bouncing back from earlier difficulties.
Despite the overall economic growth, challenges in the electricity sector remain.
However, the slight increases in generation and consumption point to a potential stabilisation, even as the country works to address the underlying issues affecting power supply and distribution.
