Nigeria’s grid-connected power plants achieved an average capacity utilisation of 86% in August 2026, according to data released by the Nigerian Electricity Regulatory Commission (NERC).
The regulator reported that the available capacity of the plants averaged 4,758 megawatts (MW), while the actual generation recorded an average of 4,102 MW per hour during the month.
The figures show a period of relatively stable performance for the generation segment of the electricity value chain, though a gap remains between the power available for distribution and the amount actually being fed into the grid.
Power generation and grid performance
The discrepancy between the 4,758 MW of available capacity and the 4,102 MW actually generated suggests that approximately 656 MW of potential power was not utilised during the period. In the Nigerian context, such gaps are typically attributed to transmission constraints, where the national grid cannot safely transport the full volume of electricity produced, or fluctuations in gas supply to thermal-based generation stations.
The NERC report on the performance of power plants in August indicates that while the generation infrastructure showed high availability, the total megawattage remains well below the levels required to meet the nation’s growing industrial and domestic demand.
For several years, the Nigerian electricity sector has struggled with systemic issues ranging from ageing infrastructure to the financial instability of the electricity value chain. While the 86% utilisation rate suggests improved operational efficiency at the generation level, the sector continues to face challenges in the transmission and distribution phases, which often prevent electricity from reaching end-users consistently.
Gas supply remains a critical variable for Nigeria’s thermal plants, which form the backbone of the national grid. Any disruption in gas delivery to these stations immediately impacts the available capacity, regardless of the technical health of the turbines themselves. Similarly, the stability of the transmission network is vital to ensure that the 4,102 MW generated in August can be effectively distributed without triggering grid collapses.
Persistent power shortages continue to increase the cost of doing business for small and medium-sized enterprises (SMEs) and large-scale manufacturers, who must rely on expensive diesel generators to compensate for grid instability. Addressing the disconnect between generation capacity and actual delivery remains a central focus for the Ministry of Power and the regulator as they seek to improve national productivity through infrastructure upgrades.
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