FG Targets 6,000MW Wheeling Capacity Before December

The federal government has set a target to increase Nigeria’s electricity wheeling capacity to 6,000 megawatts before December 2026, as part of efforts to strengthen the national grid and improve power supply across the country.

Minister of Power, Joseph Tegbe, disclosed this yesterday in Lagos while commissioning two new 100 megavolt-amperes (MVA), 132/33 kilovolt (kV) power transformers at the Ijora Transmission Substation.

Tegbe also announced plans by the government to commission 20 transmission projects before the end of the year, saying the investments were aimed at improving the capacity of the national grid to evacuate available electricity.

“Let me put on record that the objective of this commitment is not just to generate more megawatts. The objective is to create a power system that can reliably deliver electricity to where it is needed, when it is needed, and at a quality and cost that supports economic activity,” he stated.

The minister said increasing electricity generation alone would not resolve Nigeria’s power sector challenges if the transmission network lacked the capacity to move available power to consumers.

Tegbe subsequently commissioned the two 100 MVA, 132/33 kV transformers and associated upgraded facilities at Ijora, dedicating the project to Lagos residents as well as businesses and industries operating in the area.

Earlier, he unveiled the 2×60 MVA, 132/33 kV Gas Insulated Switchgear (GIS) substation on Apapa Road, Lagos, a project funded by the Japan International Cooperation Agency (JICA).

“This is my second transmission project commissioning today, and we all agreed that before the end of the year, we should commission 20. The most important thing is to be able to wheel comfortably, 6,000 megawatts before December. Will that happen?” he asked.

Speaking on the significance of the Ijora upgrade, the minister said the substation was strategically located within one of Lagos’ major economic corridors, serving industries, ports, commercial centres and surrounding communities.

He explained that the original Ijora substation had three 30 MVA transformers with a combined installed capacity of 90 MVA, which had become inadequate due to population growth and increased commercial and industrial activities.

According to him, two of the existing 30 MVA transformers have been replaced with two 100 MVA transformers, raising the total installed capacity from 90 MVA to 230 MVA.

“This improvement represents a substantial intervention. Two of the existing 30 MVA transformers are replaced with two modern 100 MVA, 132/33 kV transformers, resulting in an increase of total installed capacity from 90 MVA to 230 MVA, equivalent to about 184MW. And that represents an additional 125MW of bulk transmission capacity that will translate into real economic value going forward,” he added.

Tegbe said the upgrade would improve electricity supply to Ijora, Costain, Oyigbo, Customs and Ajegunle communities, while supporting businesses and consumers within the franchise area of the Eko Electricity Distribution Company.

He said strengthening the transmission network was critical to achieving President Bola Tinubu’s ambition of transforming Nigeria into a $1 trillion economy.

According to him, transmission infrastructure had previously constituted a major constraint to the development of Nigeria’s electricity sector, but the Federal Government was now addressing structural challenges across the electricity value chain.

Meanwhile, the World Bank has approved an additional $200 million financing for Nigeria’s off-grid electricity sector, as the country seeks to expand access to reliable electricity through mini-grids and other decentralised renewable energy solutions.

The funding is under the Distributed Access through Renewable Energy Scale-Up (DARES) Project, which seeks to increase electricity access for households, businesses and public institutions underserved by the conventional national grid.

The additional financing is expected to support the development of solar mini-grids and other distributed renewable energy systems, particularly in communities where extending the national grid is difficult or economically unviable.

The intervention comes amid persistent challenges in Nigeria’s electricity sector, including unreliable supply, high energy costs and limited grid coverage.

For many businesses, particularly micro, small and medium enterprises (MSMEs), unreliable electricity continues to increase operating costs as they depend heavily on petrol and diesel generators.

Under the DARES programme, the Federal Government and development partners are also seeking to increase private-sector participation in the off-grid electricity market.

The initiative is expected to create opportunities for renewable energy companies, mini-grid developers, equipment suppliers and other businesses across the clean-energy value chain.

Meanwhile, changes to Nigeria’s mini-grid regulatory framework are expected to provide clearer guidelines for developers and improve the operating environment for private investors deploying decentralised electricity solutions.

A more predictable regulatory framework could attract further investment into the sector as demand for alternative electricity sources grows among households, commercial users and industries.

DARES has so far reached 5.3 million Nigerians, against a target of 16.2 million by the close of the project, while solar home system deployments have reached 1.046 million, compared with a target of 2.75 million.

The World Bank approved the additional financing after Nigeria met four performance conditions, while political and macroeconomic risks associated with the programme remain rated high.