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Africa

Nigeria

With a power score of 2.5, Nigeria ranks number 8 among Emerging Markets and number 2 in the Africa region

Power score

2.5/5

135135135

Score over time

2021 - 2024

25
2021
36
2022
32
2023
8
2024

Overview

Nigeria has a power score of 2.50, which puts it at rank 8 in the Emerging Markets power ranking. In comparison to 2023, Nigeria has improved in the power rankings by 24 places, from rank 32, to rank 8.

At 2.50, the power score of Nigeria is better than than the regional average of 1.8 in the Africa region and puts it at rank 2 in the region.

Regional comparison chart

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Nigeria

Power

Power policy

Nigeria implements policies in 2/9 power policy categories tracked by Climatescope, including Renewable energy target, and Renewable energy auction.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Nigeria has dropped from 135.90 USD/MWh in 2022 to 96.23 USD/MWh in 2023. Since 2017, the average electricity price in Nigeria has fluctuated between 83.24 USD/MWh (2020) and 135.90 USD/MWh (2022).

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Power market

The top amount of capacity installed in Nigeria in 2023 was in Natural Gas at 71.39%, down from 77.02% in 2022. The technology with the biggest increase in capacity installed in 2023 was Large Hydro at 16.61%, up from 13.22% in 2022.

Installed capacity (in MW)

2000200520102015202005K10K15K MW

Electricity generation (in GWh)

20002005201020152020010K20K30K40K GWh

The top amount of electricity generated in Nigeria in 2023 was in Natural Gas at 65.33%, down from 72.45% in 2022. The technology with the biggest increase in electricity generated in 2023 was Large Hydro at 26.25%, up from 21.57% in 2022.

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Investment in clean energy in Nigeria was around $69.30 million in 2023, an increase of 913.16% from 2022 ($6.84 million). Between 2018 and 2023, the highest investment in clean energy was in 2021 at $279.71 million, while the lowest was in 2022 with $6.84 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

No

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

Yes

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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