2021 Nigerian Electricity Supply Industry Report

Overview of the Report

Over the last 15 years, the Nigerian Electricity Supply Industry (‘NESI’ or ‘the Industry’) has evolved from a natural monopoly, owned and managed by the Federal Government of Nigeria (FGN) to one with largely private sector participants. The primary objectives of the privatisation exercise which were aimed at addressing the efficiency gaps in the Industry and attracting much needed private capital are yet to be fully actualised. Whilst the privatisation exercise resulted in an influx of private sector participants with over 25 independent power plants operational (and well over 150 licensed by the National Electricity Regulatory Commission as of 31 March 2021), electricity supply from the national grid has remained weak and unable to adequately meet demand.

The Industry is fraught with many of the pre-privatisation challenges but in a more complex operating environment with multiple operators along the value chain.  The reasons for the Industry’s poor performance since privatisation are multi-faceted and interlinked ranging from unreflective tariffs to high loss levels, obsolete infrastructure, weak policy implementation and gas shortages. These challenges have not only impaired the ability of operators to meet electricity demand but also threatened the financial viability of the Industry, with significant implications for the fiscal health of the country.


This report provides useful insights on the Nigerian Electricity Supply industry.

Key benefits of the report include:

  • An understanding of the Industry’s size and structure
  • A description and detailed analysis on the Industry’s value chain
  • Provides insights on recent developments and trends including the impact of COVID 19 on the industry
  • Assesses the financial condition of the Industry using a representative sample
  • Provides an overview of the key regulators and regulations guiding the Industry.
  • Provides an Agusto & Co rating for the Industry based on in-depth research findings