Federal Government Eyes $1 Billion Revenue in Exporting Electricity to 15 West African Countries

Federal Government Eyes $1 Billion Revenue in Exporting Electricity to 15 West African Countries

The Federal Government says Nigeria could earn almost $1 billion (about ₦1.49 trillion) every year by exporting electricity to 15 West African countries beginning June 2026.

This potential revenue projection is based on Nigeria supplying 600 megawatts of power to neighbouring nations at the prevailing regional tariff, as the country moves toward full integration into the West African Power Pool (WAPP) after a historic grid synchronisation test earlier this month.

Minister of Power, Adebayo Adelabu, disclosed this during a press briefing in Abuja, announcing that Nigeria successfully synchronised its national grid with those of 15 West African nations for four hours on November 8, 2025—a major breakthrough in regional electricity cooperation.

Nigeria Achieves First-Ever 4-Hour Regional Grid Synchronisation

The synchronisation test, conducted between 5:04 a.m. and 9:04 a.m., linked Nigeria’s grid—including Niger Republic, Benin, and Togo—with the wider WAPP network covering:

• Ghana
• Côte d’Ivoire
• Burkina Faso
• Liberia
• Sierra Leone
• Guinea
• Senegal
• The Gambia
• Guinea-Bissau
• Mali

For the first time in history, electricity flowed across all participating countries at a single, stable frequency, signalling that West Africa is technically ready to operate as a unified regional grid.

Adelabu said the government aims for permanent synchronisation by June 2026, with a second, more extensive 48-hour test scheduled soon.

How Nigeria Could Earn $1 Billion From Power Exports

Nigeria currently assigns 600MW daily for bilateral electricity trading.
According to data from the Nigerian Electricity Regulatory Commission (NERC):

• Nigeria’s average approved end-user tariff is $0.07/kWh
• The regional average tariff is $0.19/kWh

Exporting power at the regional tariff rate could generate:

• $114,000 per hour
• $2.73 million per day
• ≈ $998.6 million per year

This calculation assumes uninterrupted supply once permanent synchronisation begins in 2026.

Officials say these earnings could help stabilise the power sector, reduce liquidity challenges, and accelerate regional electricity market development.

Will Exporting Power Affect Local Supply? Government Says No

The Minister assured Nigerians that exporting electricity will not reduce domestic supply.

Despite having a transmission wheeling capacity of 8,500MW, the national grid only transmits around 5,000MW due to low demand from distribution companies—leaving approximately 3,500MW stranded.

This unused capacity can be monetised through regional exports without harming local availability.

Adelabu added that Nigeria’s all-time highest generation peak—5,801.44MW—was recorded earlier this year, proving that the grid is becoming more reliable.

Transmission Expansion Boosts Grid Strength

The minister highlighted several ongoing infrastructure upgrades that will make grid synchronisation more reliable:

• North-Core Transmission Line
• Ajegunle 330kV Substation
• Kaduna–Kano Transmission Line Upgrade
• Gwagwalada–Gurara Power Connection

These projects are expected to strengthen national supply while supporting international energy exports.

Nigeria Improves Key Technical Requirement for Regional Electricity Trade

A major factor enabling successful synchronisation is the improvement in Free Governor Control (FGC)—a system that allows generators to automatically respond to frequency changes.

According to NISO, compliance has risen from 20% to 60% of power plants, boosting grid stability.

During the November test, when a power plant tripped in Côte d’Ivoire, Nigerian generators instantly stabilised the grid, demonstrating improved resilience.

Officials say the goal is to reach 100% compliance, which will significantly enhance Nigeria’s credibility in cross-border electricity trading.

A Turning Point for Nigeria’s Power Sector

Experts describe the synchronisation milestone as more than a technical victory—it lays the foundation for:

• stronger grid reliability
• increased foreign revenue
• improved investor confidence
• reduced stranded generation
• expanded regional electricity markets

With permanent synchronisation expected by June 2026, Nigeria is gearing up to become West Africa’s leading electricity supplier and a major regional energy hub.

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