Nigeria’s power export boost could yield nearly $1bn yearly as the FG eyes full regional grid integration by 2026

The Federal Government has projected that Nigeria’s Power Export Boost could generate almost $1bn in annual revenue from electricity exports to 15 West African countries beginning in June 2026.

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Speaking at a press conference in Abuja on Wednesday, the Minister of Power, Adebayo Adelabu, said the estimate is based on a full export capacity of 600 megawatts charged at the prevailing regional tariff.

He described the projection as a significant opportunity for the sector as Nigeria moves closer to full participation in the West African power market.

Adelabu explained that Nigeria successfully completed a landmark four-hour grid synchronisation test on November 8, linking the national grid with interconnected systems across the ECOWAS region.

The historic exercise demonstrated that West Africa can now operate at a unified and stable frequency for the first time.

The synchronisation test connected Nigeria, including parts of Niger, Benin and Togo, with the wider West African Power Pool that covers Ghana, Côte d’Ivoire, Mali, Senegal, Sierra Leone, Liberia, Guinea, The Gambia and Guinea-Bissau. Adelabu said the seamless operation proved that the region is now technically prepared for deeper integration.

He added that the government aims to achieve permanent synchronisation by June 2026, with a 48-hour test run scheduled once ongoing discussions with regional operators are concluded.

Edmund Eje, Executive Director of Market Operations at the Nigerian Independent System Operator, said Nigeria allocates 600 megawatts daily for bilateral power trade agreements.

NERC data also shows that Nigeria still offers the lowest electricity tariffs in West Africa, averaging about $0.07 per kilowatt-hour, roughly a third of the regional average of $0.19.

If exported at this tariff, 600 megawatts would yield around $114,000 per hour, translating to about $2.73m per day and close to $998m annually.

Officials say this income could ease liquidity pressures within the power sector and strengthen regional energy cooperation.

Adelabu stressed that the revenue ambition will not compromise domestic supply, noting that Nigeria currently has a transmission wheeling capacity of about 8,500 megawatts.

However, actual generation remains around 5,000MW due to low demand from distribution companies, leaving 3,500MW stranded within the system.

He said the milestone also reinforces efforts to stabilise the grid. Essential transmission projects, including the North-Core line, Kaduna-Kano upgrades and the Gwagwalada-Gurara connection, are expected to further enhance reliability for households and industries.

At a separate engagement, senior officials of the Nigerian Independent System Operator said that 60 per cent of power plants have now adopted free governor control, a critical operational regime that enables automatic adjustment when frequency fluctuates.

Compliance has risen from around 20 per cent to 60 per cent following a NERC directive.

Nafisatu Ali, NISO’s Executive Director for Systems Operation, said this improvement was evident during the synchronisation test when a generator tripped in Côte d’Ivoire and Nigerian plants responded instantly, maintaining stability.

She added that the target is full compliance to ensure stronger resilience and investor confidence.

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With enhanced systems and growing regional demand, the government believes Nigeria’s Power Export Boost will create a structural shift capable of transforming the electricity market and repositioning the country as West Africa’s dominant power supplier.