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Nigeria earned N30b from exportation of electricity in 2021 – CBN

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NIGERIA generated a sum of $72m from electricity export in 2021, a naira equivalent of N29.95b, using the official exchange rate of N416/$1. This is according to data from the Central Bank of Nigeria.

  The amount generated in the review year represents a 14.5% decline compared to $84.26m recorded in the previous year and 49.4% drop as opposed to the $142.3m received as payment in 2019.

  In the past five years, Nigeria earned a sum of $543.11m from electricity export to neighbouring countries, such as Niger, Benin, and Togo Republic. Nigeria continues to export power to neighbouring countries despite continuous power outages in the country as a result of recurrent grid collapses.

  Nigeria’s electricity export in 2021 only accounted for 0.16% of the total $45.92b export earnings in the period under review. At $72m, Nigeria recorded its lowest inflow from electricity export since 2010 (11 years) in the review year.

  Nigeria’s national grid has collapsed several times this year already, with the recent disruptions occurring last weekend, which caused blackouts in some areas of the country, as total energy generation plummeted to 37,964.93MWh on Saturday, 9th April 2022.

  According to the World Bank, 85m Nigerians do not have access to grid electricity, representing about 43% of the country’s population, which effectively makes Nigeria the country with the largest energy access deficit in the world, yet Nigeria still carry out cross-border electricity trades.

  Similarly, the World Bank also noted that the lack of reliable power has resulted in an annual economic loss estimate of $26.2 billion, representing about 2% of the national GDP. Furthermore, the World Bank Doing Business Report, places Nigeria at 171 out of 190 countries in getting electricity, which is seen as one of the major constraints for the private sector.

  Nigeria is endowed with large oil, gas, hydro, and solar resources, and it has the potential to generate 12,522 MW of electric power from existing plants, according to information from Power Africa. On most days, Nigeria is only able to dispatch around 4,000 MW, which is insufficient for a country of over 200 million people.

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