The Chief Executive Officer of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, has said Nigeria’s hydro plants are not generating enough power to serve the country.
The ANED CEO said this in an interview with Nairametrics on Monday.
Oduntan’s comments came amid incidents of power outages rocking Nigerian communities.
What the Disco chief is saying
He said Nigeria’s three major hydroelectric power plants are not generating enough power, hence Discos’ reliance on gas-fired plants to augment supply.
- “Gas is the fuel we use for most of our generation. We have water too, but that one is not much. Just three major hydro power plants at Shiroro, Kainji Dam, and Jebba. What they give us collectively is not up to one-third of our production. So we rely heavily on gas-fired power plants like the one at Egbin,” he said.
According to him, one of the solutions to the power supply menace is to increase production.
- “What you should do is to increase production, increase output; thereby, you’ll be able to fulfill all obligations.”
He also acknowledged that a major challenge facing electricity companies is a liquidity crisis.
- “Liquidity issue. People should endeavor to pay for their energy usage. People should fish out those using electricity illegally; if they see something, they should say something. The ministries, departments, and agencies should pay their debts, that’s the way out. It’s about payments, and they should deal with the issue of tariff mismatch,” he told Nairametrics.
He also sought technical alignment within the electricity distribution chain.
- “There should be technical and commercial alignment. If we’re generating 10,000MW, the Transmission Company of Nigeria should be able to transmit that, and the distribution companies should be able to distribute that 10,000MW.”
Get up to speed
Nigeria’s prolonged power outages, affecting homes and businesses nationwide, are primarily due to inadequate gas supply to thermal power plants.
- The Nigerian Independent System Operator (NISO) made this known in February.
- The system operator attributed the sustained drop in electricity generation to severe fuel constraints impacting the national grid.
In a statement titled “Declining Power Output Attributable to Generation Shortfalls and Gas Supply Limitations,” posted on its official X handle, NISO said average available generation is currently around 4,300 megawatts, significantly below the country’s installed capacity.
What you should know
Electricity distribution companies in Nigeria are facing financial pressure.
- A recent directive by the Nigerian Electricity Regulatory Commission (NERC) required them to refund N20.33 billion to customers who purchased prepaid meters under the Meter Asset Provider (MAP) scheme.
- The directive was contained in an amended order issued by the regulator on March 1, 2026, directing electricity distribution companies (DisCos) to reimburse affected customers within 12 months.
- Under the order, the refunds will be credited to customers’ electricity bills in equal instalments over the repayment period—a move aimed at strengthening consumer protection and restoring confidence in Nigeria’s electricity market.
Industry stakeholders say the directive comes at a time when electricity distribution companies are already struggling with severe liquidity challenges across the Nigerian Electricity Supply Industry.
Executives within several DisCos warn that the order could further strain their already fragile financial positions.
