Federal Government Issues 13 New Licences For Generation, Distribution Of Power

The Federal Government says it has, through the Nigerian Electricity Regulatory Commission, NERC, issued 13 new licences for the generation of off-grid and embedded power, independent electricity distribution, as well as for the trading of electricity.

It said licences were issued in the third quarter of 2023, as the cumulative quantum of electricity to be generated by the licensees was 40.9 megawatts

The commission explained that it issues licences for electricity generation, transmission, distribution, trading and system operations in the Nigeria Electricity Supply Industry.

“For activities that do not require licenses based on the provisions of sections 65-68 of the Electricity Act 2023, but still require authorisation from the commission, such as off-grid captive power generation and mini-grid development, the commission issues permits to the operators following a review of the relevant applications,” 

The issuance of licences for the generation of electricity by the government through NERC is another way of boosting the country’s power supply and reducing the number of persons who lack electricity.

Providing further explanation on the thirteen new power generation, distribution and trading licences, the NERC in its report, stated that Daybreak Power Solutions Limited received eight licences for various off-grid power generation projects in Lagos, Abia, Borno, Kano, Oyo and Abuja.

Ekiti Independent Power Project got a licence for the development of a gas-fired 5MW embedded power project to be constructed in Ekiti State.

Olokiti Power Distribution Limited received an Independent Electricity Distribution Network licence that would be operational in Ekiti State.

Ember Power Limited got an electricity trading licence, while Island Power Limited got a licence for the development of a 10MW embedded gas-fired power project in Lagos.

Also, Energy Company of Nigeria Limited was issued an Independent Electricity Distribution Network licence that would be operational in Lagos State.

Nigeria generates between 3,500MW and 5,000MW of electricity for the over 200 million people across the country, a development that has been described as poor for Africa’s biggest economy.  Power consumer groups have repeatedly condemned the poor electricity supply in Nigeria despite the trillions of naira invested in the sector. They have also charged the government and operators to work harder to deliver adequate electricity to Nigerians.