Will Nigeria’s DISCOs increase power off-take?

Nigeria's Minister of Power has raised concerns over electricity distribution companies' rejection of power, hindering the government's target of reaching 6,000 megawatts of power generation by the end of the year. George Etomi, founder of Etomi and Associates, shed light on recent investments in the country's power infrastructure on CNBC Africa. The situation revolves around the inability of DISCOs to increase their off-taking capacity, leading to rejected power from generating companies. This rejection stems from the introduction of a special band A tariff, causing a 'tariff shock' for consumers. As a result, many consumers in band A are seeking alternative power solutions, reducing the load distributed to lower bands like B and C. This imbalance prompts DISCOs to reject excess power to avoid losses, highlighting the need to re-evaluate the band A policy for equitable distribution among consumer bands. Etomi emphasized the importance of stable power supply to encourage consumers to pay more for electricity, ultimately reducing reliance on self-generation. The national grid's limitation is another pressing issue, with the power minister acknowledging its inadequacy to support the government's vision for the sector. Plans for a significant investment of over 1.2 trillion in new substations and distribution infrastructure aim to address this gap. However, Etomi suggests re-examining the 'super grid' concept to cater to the growing population's energy needs effectively. Segmenting the grid and decentralizing power distribution to state electricity markets could enhance reliability and accessibility for consumers. This strategic approach aligns with the goal of ensuring seamless power supply across the country.