According to a data by the National Bureau of Statistics (NBS), the Nigerian power sector recorded a year-on-year growth of 114.30% in the second quarter of 2021.
In spite of the interventions which have resulted in a 114.3% growth in GDP growth, the performance of the Nigerian power sector has remained awful, recording less than 4,000 megawatts of electricity, which did not reflect the growth, according to expert.
This was 105.66% points higher than the 8.64% growth rate recorded in the corresponding quarter of 2020, and 83.60% points higher than the growth rate of 30.70% recorded in the quarter before. Quarter-on-quarter, the sector recorded a growth rate of 281.45% in Q2, 2021.
The report also showed that in real terms, the electricity, gas, steam and air conditioning supply sector increased by 78.16% in Q2 from 8.66% in the first quarter of 2021 and -3.00% in the second quarter of 2020.
However, power generation data from Nigeria’s System Operation (SO) showed that the country’s electricity generation stood at 3221 megawatts as at September 14, 2021, a far cry from its 13,000 megawatts capacity.
Analysts said recent reforms to improve cash returns, such as higher tariffs, higher meter supplies and federal government’s financial interventions in the sector have had some impact.
According to the managing director, Credent Investment Managers, Ibrahim Shelleng, the increase in this sector is attributable to an increase in electricity tariffs which have gone up by almost 100%.