Gas-rich Nigeria faces blackouts amid five-year high flaring

Nigeria holds one of the world’s largest untapped gas endowments, yet millions of its citizens continue to grapple with chronic electricity shortages led by grid collapses, load shedding or disturbances.

Despite sitting on an estimated 600 trillion cubic feet (tcf) of unproven gas reserves, the country has recorded persistent power outages in recent weeks, largely driven by gas supply shortfalls to generation companies (GenCos).

Major cities across Nigeria have experienced worse-than-usual electricity disruptions since last week, as power outages grow more frequent and prolonged.

Data from the Nigerian Oil Spill Monitor, corroborated by the National Oil Spill Detection and Response Agency (NOSDRA), paints a less encouraging picture of gas utilisation efforts in the country.

According to the data, oil and gas companies flared an estimated 323.2 million standard cubic feet (scf) of gas in 2025, highlighting persistent inefficiencies in Nigeria’s upstream operations and ongoing challenges in fully commercialising associated gas resources.

Flaring figures stood at 349.3 million scf in 2020. Since then, Nigeria has recorded volatility, recording 264.6 in 2021, 230.1 million scf in 2022, 278.3 million scf in 2023, and 301.3 million scf in 2024.

“Are we truly prepared for significant gas uptake and usage, especially considering the ‘Decade of Gas’ initiative from 2020 to 2030, with 40 percent of this period already elapsed and little tangible progress in flare reduction,” asked Oyinkepreye Orodu, a subface and energy researcher.

The rise in gas flaring comes at a time when Nigerian residents and local manufacturers are grappling with soaring energy costs, persistent gas shortages, and erratic power supply– factors that have forced many firms to scale down operations or shut down entirely.

Many gas-fired power plants are also operating below capacity due to fuel shortages, worsening electricity shortages across the country.

The Transmission Company of Nigeria confirmed that reduced gas supply has significantly cut electricity generation, leaving distribution companies with less power to deliver to homes and factories.

“With thermal plants forming the dominant share of Nigeria’s generation mix, any disruption in gas supply directly impacts grid output,” the Nigerian Independent System Operator (NISO) said.

Thermal plants, which account for the bulk of Nigeria’s generation mix, require an estimated 1,629.75 million standard cubic feet (MMSCF) of gas per day to operate at optimal capacity.

However, as of February 23, 2026, actual gas supply stood at approximately 692 MMSCF per day, representing less than 43 percent of daily requirements.

Industry analysts have warned that without stronger regulatory enforcement and better investment incentives, oil companies operating in Nigeria will continue to flare gas as a cheaper alternative to processing or reinjecting it.

Jide Pratt, country manager of TradeGrid, expressed concern over the persistent rise in gas flaring despite several government interventions aimed at curbing the practice.

According to him, weak penalties and the high cost of building gas infrastructure remain the primary reasons companies continue to flare associated gas.

Data from the NOSDRA showed that oil and gas companies incurred $646.3 million in penalties for gas flaring in 2025.

Pratt, who also serves as chief operating officer of AIONA, noted that incentives such as those introduced under Executive Order 40, which targets investments in non-associated gas, could help drive progress in reducing flaring.

“Fines for flaring should be increased to make reinjection more attractive,” he added. “Most companies take the cheaper option of paying fines rather than investing in extraction and piping.”

Nigeria has introduced several legislative measures to curb gas flaring since 1969. Since 1984, it has been illegal to flare gas without written approval from the Minister of Petroleum Resources.

Under current regulations, companies producing more than 10,000 barrels per day pay a penalty of $2 per 1,000 standard cubic feet (scf) of gas flared, while those producing below that threshold pay $0.50 per 1,000 scf.

Elijah Wisdom, chief executive officer and founder of Creek Transitway Ltd, said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should allow international oil companies to choose their own flare gas offtakers rather than having them assigned by regulators.

Wisdom also downplayed concerns over gas pricing, arguing that the key challenge lies in infrastructure and cost-reflective tariffs. Gas prices in the United States vary widely depending on location. The key issue is infrastructure and cost-reflective tariffs, he said.

He added that recent adjustments under the Domestic Gas Delivery Obligation (DGDO) have made pricing more reasonable, but outstanding debts within the sector, including obligations owed by NNPC Limited to the Niger Delta Power Holding Company, continue to affect operations across the gas-to-power value chain.

New grid asset company proposed to fix Nigeria’s power Bottleneck

President Bola Tinubu initiated plans to establish a Grid Asset Management Company (GAMCO) as part of efforts to address persistent challenges in Nigeria’s power sector, particularly within the transmission segment.

He disclosed this while briefing journalists at the State House in Abuja after a meeting of the Federal Executive Council (FEC) presided over by the president.

Mohammed Idris, minister of Information and National Orientation, said the council approved the setting up of a panel to drive the initiative following a memorandum presented by Tinubu for deliberation.

According to him, the proposal is aimed at strengthening the transmission component of Nigeria’s electricity value chain, which the government considers the most critical bottleneck to achieving stable and reliable power supply across the country.

He noted that following the deregulation of the power sector, the industry was unbundled into three key segments, generation, transmission and distribution, but the transmission arm has remained the weakest link.

“The proposed Grid Asset Management Company will be responsible for managing and strengthening the national electricity grid to improve efficiency and enhance power delivery nationwide,” Idris said.

To advance the plan, the FEC approved the establishment of an inter-ministerial committee tasked with developing the operational framework for the proposed company.

By Abubakar Ibrahim, Business Day

Aliko Dangote calls for emergency power summit as blackouts threaten Nigeria’s $500bn economy

 

Speaking at the national launch of the National Industrial Policy 2025 in Abuja, Dangote called for an urgent one or two-day national retreat dedicated solely to resolving the country’s long-running power crisis.

The event, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future”, brought together senior government officials, development partners, and business leaders. President Bola Tinubu was represented by Vice President Kashim Shettima.

“One of the things that I want to advise Your Excellency… is to call a national forum where we will resolve the issues of power,” Dangote said.

“Because without power, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth.”

His remarks come at a delicate moment for Africa’s largest economy, valued at roughly $500 billion based on current World Bank estimates. Nigeria is seeking to reposition itself as a manufacturing hub under its new industrial policy, yet erratic electricity supply continues to undermine productivity and investor confidence.

A recent five-day electricity supply disruption across parts of the country underscored the urgency of Dangote’s intervention. Between 12 and 15 February 2026, several power plants experienced gas constraints after maintenance work by Seplat Energy temporarily reduced supply, leading to nationwide generation shortfalls and load shedding.

Manufacturers say such episodes are not isolated incidents but part of a persistent structural problem. Many factories now rely heavily on diesel generators to remain operational, sharply raising production costs. Dangote, whose conglomerate spans cement, fertiliser, and oil refining, acknowledged the irony.

“I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power,” he said, noting that some businesses spend more on generating electricity than on producing goods.

Beyond electricity, Dangote argued that Nigeria must also strengthen protection for domestic industries if it hopes to industrialise at scale. While he praised the government’s policy incentives as “very good”, he insisted that incentives alone are not enough.

“If you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” he said.

His comments reflect broader concerns within Nigeria’s organised private sector about the impact of heavy import dependence, high interest rates, and infrastructure deficits. Stakeholders warn that cheap imports and dumping, combined with local structural constraints, are squeezing domestic manufacturers and contributing to inflationary pressures.

Dangote also highlighted the scale of private sector influence in Nigeria’s economy. According to him, the private sector accounts for nearly 90 per cent of gross domestic product, compared with about 10 per cent for government activity.

“Nigeria is the only country in Africa where the private sector is bigger than the government,” he said, urging closer collaboration between policymakers and business leaders.

At the same time, he stressed that businesses must fulfil their obligations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business,” he said, noting that tax revenues from large industrial operations ultimately strengthen public finances.

Dangote expressed cautious optimism about recent economic reforms, pointing to improved currency stability and renewed investor interest. He suggested that reducing import dependence and expanding local manufacturing would further strengthen the naira and generate employment.

Experts say the success of the National Industrial Policy 2025 hinges on resolving the electricity bottleneck. Without reliable power, ambitions to boost exports, reduce imports, and position Nigeria as a manufacturing gateway to African markets may remain out of reach.

For Dangote, the message was clear and urgent: fix the power sector first. Only then can policy translate into productivity, and ambition into sustainable growth.

By Segun Adeyemi, Business Insider Africa

Related story: Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

Nigeria reveals $17.8 million electricity debt owed by its neighbours

The Nigerian Electricity Regulatory Commission (NERC), in its Third Quarter 2025 report, disclosed that Togo, Niger, and Benin owe Nigeria $17.8 million (N25 billion).

The report showed that the Market Operator invoiced a total of $18.69 million for electricity provided over the review period to the three countries, but only remitted $7.125 million, leaving an outstanding balance of $11.56 million.

Furthermore, international bilateral clients had legacy invoices totaling $14.7 million, of which they paid $7.84 million, leaving a debt of $6.23 million.

As reported by the Punch Newspaper, the debt accumulated between the previous quarters and Q3 2025 was $17.8 million (N25.36 billion).

The regulator identified the international offtakers as Compagnie Énergie Électrique du Togo, Société Béninoise d'Énergie Électrique of the Republic of Benin, and Société Nigérienne d'Électricité of the Republic of Niger.

The regulatory body reported that the three foreign bilateral clients that bought electricity from the grid-connected GenCos paid a total of $7.125 million toward the $18.69 million invoice that the Market Operator sent them for services provided in 2025/Q3.

A majority of the invoices remained outstanding at the close of the quarter, per to the report, which revealed that the remittance level reflected a 38.09 percent remittance performance.

“The three international bilateral customers being supplied by GenCos in the NESI made a payment of $7.12m against the cumulative invoice of $18.69m issued by the MO for services rendered in 2025/Q3, translating to a remittance performance of 38.09 per cent,” the NERC stated.

“The domestic bilateral customers made a cumulative payment of N3.19bn against the invoice of N3.64bn issued to them by the MO for services rendered in 2025/Q3, translating to 87.61 per cent remittance performance,” it added.

The NERC went on to disclose that, from a total invoice of N400.48 billion, Nigeria's 11 energy distribution companies sent a sum totaling N381.29 billion to the Nigerian Bulk Energy Trading Plc and the Market Operator in Q3 2025.

This reflects a remittance performance of 95.21%.

By Chinedu Okafor, Business Insider Africa

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Electric motorcycles are slowly taking off in Nigeria, but high battery costs hold back buyers. Experts say government incentives, tax breaks, and better charging infrastructure are essential for the shift to succeed. Without reliable power and affordable batteries, Nigeria’s EV transition risks stalling.

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Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

After decades of unreliable electricity and frequent blackouts, Nigeria is seeking a $2 billion lifeline to rebuild its ailing power grid and restore confidence in its industrial energy supply.

Minister of Power, Mr. Adebayo Adelabu, confirmed the development during an economic summit in Abuja, noting that the new grid will connect Nigeria’s eastern and western regions, where a significant proportion of industrial activities are concentrated.

“It is part of the government’s plan to decentralise power generation and encourage large-scale commercial users, who exited the national grid due to its unreliability, to return,” Adelabu stated.

A Persistent Power Deficit

Nigeria’s energy crisis remains one of the most pressing constraints on its economic growth. Despite an installed generation capacity of about 13 gigawatts, the national grid delivers barely 4 gigawatts to more than 200 million citizens.

Frequent blackouts and outdated infrastructure have pushed many factories, businesses, and households to rely on self-generated power from diesel and gas generators.

The resulting operational costs have constrained productivity, raised inflationary pressures, and diminished competitiveness in the manufacturing sector.

By contrast, South Africa, with about a quarter of Nigeria’s population, has an installed generation capacity of roughly 70 gigawatts, underscoring the vast energy gap that continues to constrain Nigeria’s industrial competitiveness.

However, the proposed super grid is expected to enhance transmission efficiency, improve reliability, and ensure greater power delivery to key industrial zones. Minister Adelabu confirmed that the Federal Executive Council has already approved the project’s financing framework.

Expanding China’s Energy Footprint in Africa

The $2 billion super grid loan forms part of President Bola Tinubu’s broader economic and energy reform strategy designed to attract foreign investment and reposition Nigeria as a key player in Africa’s power market.

It also reinforces China’s growing role in financing major infrastructure projects across the continent.

Beyond the EximBank talks, Nigeria has secured $1.1 billion from the African Development Bank (AfDB) to expand electricity access, $70 million from the International Finance Corporation (IFC) for mini-grid development, and $328.8 million from Chinese firm CMEC to upgrade transmission infrastructure.

In October 2023, the government also signed a $2 billion Memorandum of Understanding (MoU) with three Chinese firms to invest in power generation and digital economy projects. In addition, Nigeria and China renewed a $2 billion currency-swap agreement in late 2024 to strengthen bilateral trade and investment ties.

Adelabu’s team confirmed to Bloomberg that discussions with China’s EximBank are ongoing and “progressing positively.”

Tariff Reforms and Financial Stability

The minister further revealed that recent tariff adjustments for urban consumers have improved the financial sustainability of the electricity sector. Industry revenues increased by 70 percent in 2024 and are projected to rise by a further 41 percent this year, reaching ₦2.4 trillion ($1.6 billion).

“These changes will enable power firms to reinvest in infrastructure, expand access, and improve reliability,” Adelabu said.

The tariff reforms, though controversial, are part of the government’s effort to create a cost-reflective pricing system capable of attracting long-term investment.


Powering Africa’s Industrial Ambitions

The “super grid” initiative aligns with President Tinubu’s wider economic reforms, including the removal of fuel subsidies, overhaul of tax laws, and improved security in oil-producing regions to boost crude output.

Since assuming office in 2023, Tinubu has placed energy reform at the heart of his administration’s agenda for industrialisation and job creation.

Despite ongoing interventions, Nigeria’s national grid continues to suffer from instability. Data from the Nigerian Electricity Regulatory Commission (NERC) show multiple partial and total collapses in 2024, including two nationwide blackouts.

Adelabu said the proposed super grid would deploy advanced transmission technology to increase capacity and reduce system failures.


Toward a Regional Power Hub

Nigeria’s energy reform efforts have continental implications. The development of a super grid could not only stabilise domestic supply but also enable the country to export power to neighbouring states through the West African Power Pool (WAPP) framework, advancing regional energy integration.

By Olamilekan Okebiorun, Business Insider Africa

Related story: Chinese firms launch solar project to light up Nigerian capital city

Chinese firms launch solar project to light up Nigerian capital city

Two Chinese construction firms, China Civil Engineering Construction Corporation (CCECC) and CGCOC Group Co., Ltd., have officially broken ground on the "Light Up Abuja" project, a flagship infrastructure initiative of Nigeria's Federal Capital Territory Administration (FCTA).

Government officials and residents gathered on Thursday for the launch ceremony in Abuja, the Nigerian capital, which marked the start of comprehensive installations of advanced hybrid solar streetlights across the city -- a move expected to significantly enhance security and urban development.

The project, divided into two main parts, assigns CCECC and CGCOC key responsibilities for delivering integrated solar lighting systems across major districts and expressways in the FCTA.

Speaking at the ceremony, FCTA Minister Nyesom Wike highlighted the project's importance in improving residents' quality of life and safety. He noted that conventional streetlights had become largely dysfunctional due to vandalism and poor maintenance, while the new hybrid solar systems are equipped with built-in resilience and advanced features to overcome these challenges.

A key innovation, Wike said, is the integration of surveillance modules into the streetlights. These will connect to a centralized control room, enabling real-time monitoring and rapid response to vandalism and other security threats. This technology, he added, is expected to deter criminal activity and safeguard government investments in public infrastructure.

Wike hailed the deepening comprehensive strategic partnership between China and Nigeria in infrastructure development, describing the project as a tangible outcome of President Bola Tinubu's state visit to Beijing in September 2024 and a reinforcement of the mutually beneficial ties between the two countries.

Scheduled for completion within six to seven months, the project aims to transform Abuja's nighttime landscape ahead of the city's 50th anniversary in 2026. Under the agreement, the two Chinese firms will not only install but also maintain the solar lighting systems for four to five years.

"This project actually captures all the major areas of Abuja. As we all know, light is essential to our lives and livelihood. In this work, what we will deliver to Nigerians is not only the streetlight, but we will also proffer solutions to power supply and lighting problems, using solar energy," said Guan Shuai, managing director of CCECC in Nigeria.

People's Daily Online

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With rising costs, and unreliable electricity supply from the national grid, many in Nigeria are turning to alternatives like solar energy. Despite the country having regular sunlight, solar power makes up less than 0.5 percent of its generation capacity in 2022. And now households and businesses are tapping into the power of the sun, to fill the energy gap.

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'Nigeria First' policy aims to prioritize homegrown goods and services

Supporters say the initiative represents a bold step toward economic self-reliance. The government states that the policy will be supported by an executive order to ensure the desired results.

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Dangote links power shortages in Nigeria to stolen funds hidden abroad

During a recent tour of the Dangote Refinery in Lagos, the president of the Dangote Group, Aliko Dangote, highlighted how unreasonable it is for a country of over 200 million people to be limited to 4,500 to 5,000 megawatts (MW) of power.

“We as a company alone are producing, group-wide for our own consumption, over 1,500 MW,” he stated.

"So, Nigeria should not be three times what we are producing as a country. Nigeria should be at about 50,000 MW to 60,000 MW,” Dangote added.

The Nigerian business mogul, whose refinery and fertilizer plants are among Africa's largest, explained that his company's investment in energy demonstrates how private sector engagement in power generating can be game-changing.

He encouraged Nigeria's government to further open up the industry to encourage private investment and involvement.

Dangote, who has spent the last decade developing the $20 billion refinery project, also stated that, while establishing the refinery was extremely tough, increasing Nigeria's power generating capacity to 30,000 MW is far easier - provided the appropriate policies and commitments are in place.

“What we have done here just shows that there’s nothing impossible. All this can be replicated in our power sector. There’s no reason why Nigeria should be doing 5,000 MW,” Dangote asserted.

“What we have actually done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power, with transmission and distribution. But it’s not the work of the government alone,” he continued.

Dangote's comments come as his refinery, which is projected to drastically cut Nigeria's dependency on foreign petroleum products, ramps up operations.

Dangote links power shortages to a lack of investment and stolen funds hidden abroad

Much like the fact that such a facility which is typically supposed to be a government initiative is now privately owned, the Nigerian philanthropist noted that the power sector is also privatized, which presents an opportunity for investors.

“We, the private sector, Nigerians, most especially us, should stop taking our money abroad and invest the money here to make sure that we develop our own country and continent, because without us showing the confidence that, yes, we have confidence in our own economy and the leadership of the country, foreigners will not come,” Dangote explained.

“We know our leaders; we have confidence in them. So, that money they’re taking out of the country, they should leave it here so that it can benefit everybody.”

As reported by the Punch newspaper, he criticized people who stole public assets and hid them overseas rather than utilizing them to help develop the country, as he connected capital flight to stunted growth.

“I keep saying this: there’s nowhere that you will say that there’s no corruption. There are lots of countries that have more corruption than we do, but they are growing. Our biggest problem and challenge is that people who have stolen money have taken the money abroad,” he said.

“So, the money has no use to them; it has no use to their family because they cannot show their family that they have stolen money. And they are not investing here to grow the domestic economy.”

By Chinedu Okafor, Business Insider Africa

Related story: Solar power producer Sun King targets triple growth in Nigeria

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Related story: World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

Solar power producer Sun King targets triple growth in Nigeria

A Kenya-based solar power company is banking on using an $80 million loan from the World Bank’s private investment arm to meet its target of tripling sales in the world’s most electricity-deprived country within the next few years.

For nearly two decades, Sun King has sold solar-powered electronics to African households and small businesses with unreliable connections to grids, spreading full product payment over up to two years. Its kits are made in China and are now available in 11 African countries, including Nigeria where it has sold 2 million kits mostly within the last three years, founder and chief executive officer T. Patrick Walsh told Semafor.

Nigeria is where Sun King sees “the lowest rates of non-payment” for its products and is its fastest-growing market, Walsh said. Having concluded a deal this month for an $80 million loan from the International Finance Corporation (IFC) and a Nigerian bank, the company plans to rapidly scale up.

“We are probably going to grow in Nigeria by at least a factor of 3 from where we are today,” Walsh told Semafor. Tanzania, Malawi, and Togo are other markets where Sun King expects growth to speed up, he said.

Despite its vast stores of natural gas, Nigeria has the highest number of electricity-deprived people of any country in the world, according to the World Bank and International Energy Agency. Sun King is aiming to reach the nearly 90 million Nigerians estimated to be without electricity.

Its operation relies on 9,000 agents whose job it is to physically reach potential customers living mostly outside of Lagos and the capital city Abuja. A network of 85 walk-in outlets act as touch points for after sales support.

The company is replicating a model that has served it in Kenya, where an estimated one in five households use a solar product. On a continent where more than half a billion people are without electricity — prompting international efforts like the Mission 300 agenda to provide 300 million people in sub-Saharan Africa electricity access by 2030 — Walsh is convinced that “the pathway for people to get their first connection is through solar.”

Solar-based electricity remains a pricey proposition for many in Africa. The upfront cost of setting up panels, batteries, and an inverter to provide half-a-day of power for a Nigerian household can be up to $4,000, which could make the service out of reach for a minimum wage earner.

Sun King learned early that its services were “not going to scale without access to finance for the end customer,” its CEO said. Offering a payment plan spread over a year has made it easier for customers to buy products, but affordability remains the company’s “biggest challenge to getting these products out there,” he said.

Walsh believes they have produced evidence of demand and adoption to secure multimillion-dollar financing deals, like the one with the IFC. In 2021, the company received a $75 million loan to expand operations in Kenya from a group of lenders including South Africa’s Standard Bank, and British International Investment, the UK’s development financier.

The loans are denominated in the local currencies, naira and Kenyan shillings, in each case. It helps the company hedge against foreign exchange volatility that makes it unfavorable to fund local currency assets with foreign currency debt, said chief financial officer Krishna Swaroop.

“We cannot solve macro-economic instability, but local currency financing makes our business stable in order to continue working and expanding,” he said.

By Alexander Onukwue, Semafor

World’s largest electric vehicle-producing country set to establish an EV plant in Nigeria

The initiative is a huge step forward for Nigeria's industrialization aspirations and reinforces Beijing's expanding presence in Nigeria, in a year when the East Asian country has been very active within Africa’s largest oil-producing country.

This new development was made known during a courtesy visit by China's Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development.

During the visit, Ambassador Dunhai underlined the need for further collaboration between the two countries in unleashing Nigeria's solid minerals potential, a crucial component in EV battery production, and propelling Nigeria's industrial growth.

Dunhai also stated that China has always recognized Nigeria as an important partner in its foreign strategy.

The Chinese ambassador mentioned the recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping, during which both leaders decided to upgrade Nigeria-China bilateral relations to a comprehensive strategic partnership, paving the way for considerable economic and technical collaboration.

Dr. Alake, in response noted that the Federal Government has granted authority for China to develop electric car manufacturing factories in Nigeria, as he emphsized the idea that Nigeria is open for business.

He asked that the ambassador persuade Chinese businesses to make full-cycle investments in Nigeria, from extraction to processing, as reported by the Punch.

“For years, our minerals have been exported raw to fuel foreign industrialisation. That must change, Dr. Alake stated.

“We now prioritise local processing to drive Nigeria’s development. For instance, with the abundance of lithium, we want to see local manufacturing of electric vehicles and batteries,” he added.

“Plans are underway to establish electric vehicle factories and other manufacturing ventures in Nigeria.

Chinese companies are already deeply involved in Nigeria’s mining sector, from exploration to processing,” Dr. Alake continued.

“We aim to deepen this collaboration, especially in line with President Tinubu’s eight priority areas, notably economic diversification through solid minerals,” he added.

Deals between China and Nigeria in 2025 so far

The EV announcement follows a flood of Chinese investments and strategic engagement with Nigeria so far in 2025.

In April, the National Sugar Development Council (NSDC) inked a $1 billion agreement with Chinese company SINOMACH to build a large-scale sugarcane production and processing facility.

Mr. Kamar Bakrin, NSDC Executive Secretary, told the News Agency of Nigeria (NAN) that the investment will alter Nigeria's sugar sector and strengthen China's strategic footprint in the nation.

216 Chinese businesses traveled to Nigeria in March to look for potential investment opportunities. Interestingly, 74 of them specifically indicated interest in Nigeria's oil industry, indicating China's intention to diversify its holdings in the nation's important sectors.

A new shipping route that provides an exceptional 27-day transit time between Shanghai and Lagos began in February when the MV Great Cotonou, a Con-Ro vessel from China, arrived at the PTML facility in Lagos, West Africa's largest multipurpose RO/RO facility.

It is anticipated that this innovation would transform the logistics of regional trade.

In January, the China Development Bank approved a $254.76 million loan for a major railway project in Nigeria, expanding the country's railway modernization program as part of China's Belt and Road Initiative.

By Chinedu Okafor, Business Insider Africa

Nigeria’s Arnergy Solar Secures $18 Million Series B Round to Scale Solar Deployments, Expand Access in Key Sectors

Arnergy Solar, a leading Nigerian renewable energy company specializing in distributed solar power solutions, has successfully closed an $18 million Series B funding round to accelerate its solar deployment initiatives and expand its footprint across critical sectors.

The funding round was led by CardinalStone Capital Advisers Growth Fund (CCA-GF), with British International Investment (BII) joining as a new investor with a $3 million commitment. The round also drew continued backing from existing investors including Norfund (the Norwegian Investment Fund for Developing Countries), Breakthrough Energy Ventures (BEV)—founded by Bill Gates, EDFI Management Company (EDFI MC), and Shell-backed All On.

The $18 million raise includes a $15 million Series B extension and a previously closed $3 million Series B1 round led by All On. This brings Arnergy’s total capital raised to date to over $27 million, following its $9 million Series A in 2019 that included support from BEV, Norfund, ElectriFI, and All On.

The new capital is earmarked for deployment of 12,000 additional solar systems by 2029, expansion of Arnergy’s rent-to-own solar financing model, and sector-specific growth in healthcare, education, and small and medium-sized enterprises (SMEs). The company also plans to leverage strategic partnerships to strengthen its distribution network and increase energy access across Nigeria.

Legal advisory on the deal was provided by Aluko & Oyebode, with Partner Oludare Senbore leading the transaction, supported by Zacheus Akanni, Esther Yugbovwre, and Precious Odina.

Arnergy’s solar systems play a vital role in closing Nigeria’s energy access gap by offering clean, reliable, and affordable off-grid power to underserved communities and businesses. This latest investment underscores investor confidence in the company’s scalable model and its role in driving Nigeria’s energy transition.

By Kavitha, Solar Quarter

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The Nigerian government announced a 35 percent reduction in electricity subsidies, following tariff hikes for major consumers implemented in April last year. While the move has reportedly saved the government millions of dollars, many Nigerians are unhappy as they continue to struggle with high energy costs and unreliable distribution.

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Nigeria cuts electricity subsidies by 35% after tariff hike

Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa's most populous nation.

Nigeria's power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.

The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.

The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.

Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with "the market generating an additional 700 billion naira in revenue, reflecting a 70% increase".

This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government's tariff shortfall from 3 trillion naira to 1.9 trillion naira.

But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.

This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.

Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.

Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.

By Isaac Anyaogu, Reuters

Nigeria suffers power outage after grid failure, power companies say

Nigeria suffered a widespread electricity blackout after its national grid collapsed on Wednesday, the country's power distribution companies said.

Nigeria's grid is prone to failure and has this year suffered partial or total collapse at least 10 times, mainly due to faults and vandalism at power installations.

Distribution companies across Nigeria, also known as Discos, said in separate statements that the grid had failed at around 1233 GMT and they hoped electricity would be restored soon.

Data from the Transmission Company of Nigeria showed electricity generation plunged from 3,087 megawatt before the grid collapse, to zero as of 1400 GMT. 

Reuters 

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Video - Power shortages, rising fuel costs accelerate shift to solar in Nigeria

Many small businesses now rely on solar for their energy needs after public electricity costs surged. Solar companies are easing adoption by offering installment payment options, making it more accessible.

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Related story: Peter Obi Urges FG To Resolve Power Crisis Challenges

 

Peter Obi Urges FG To Resolve Power Crisis Challenges

Former presidential candidate Peter Obi has called on the federal government to proffer lasting solutions to the power crisis in the country.

Obi made the call on his X handle while raising concerns about the ongoing power crisis following another collapse of the national grid.

The call came after Nigerians were plunged into a fresh round of darkness following another collapse of the national power grid.

Since January 2024 till date, the grid has collapsed 10 times, and three times in October alone.

Speaking on the issue via a statement on Wednesday via X, Obi contrasted Nigeria’s struggles with power supply to South Africa’s recent success in achieving seven months of uninterrupted electricity.

He said, “Again, yesterday the now regular news came that the National Grid had collapsed once again. Just a few days ago, on the 25th of October, South Africa that was the second-largest economy in Africa behind Nigeria until recently, with a quarter of our population, celebrated seven months of uninterrupted power supply.

“South Africa generates and distributes about 40,000 MW of electricity, while Nigeria struggles to generate and distribute just 10% of that.”

“Is there any tribe in Nigeria that enjoys uninterrupted power supply like South Africa? I am labelled a tribal bigot. When I ask if any religion enjoys special privileges in this crisis, I am called a religious bigot. But I will continue to speak the truth about our situation today,” he said.

“The fact remains that we are all suffering equally from this failure,” he said.

Obi urged Nigerians to move past “primordial sentiments” and instead focus on electing leaders who can drive the country towards development.

He said, “The fact remains that we are all suffering equally from this failure. The solution lies not in tribal or religious affiliations but in visionary leadership and a shared commitment to progress.

“We must set aside these primordial sentiments and elect leaders who are competent, capable, and have the vision to transform our nation from a consumer-driven economy to a productive one by investing our meagre resources in critical areas of development like health and education, lifting our people out of poverty, and ensuring increased electricity production and distribution.”

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Related story: Nigeria's power grid partially collapses again, causing blackouts

Nigeria's power grid partially collapses again, causing blackouts

Nigeria's national grid suffered a partial collapse on Tuesday, the state power transmitter said, marking the ninth incident this year to have caused power outages across the country.

The Transmission Company of Nigeria (TCN) said the grid experienced a disturbance at around 1252 GMT, triggered by a series of line and generator trips destabilising the system.

While some regions, including the capital Abuja, regained power about an hour after the collapse, outages continued elsewhere.

"TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance," spokesperson Ndidi Mbah said.

Blackouts are frequent in Nigeria, Africa's most populous country with over 200 million people, due to ageing power infrastructure, vandalism and inadequate gas supply for its thermal plants, which account for over 75% of output.

Although Nigeria has the infrastructure to generate about 13,000 megawatts of power, its creaking grid can only distribute a third of it, forcing businesses and households to run costly fuel generators. 

By Camillus Eboh, Reuters 

Related story: Nigeria's state transmission company restoring power after grid collapse

 

Nigeria's state transmission company restoring power after grid collapse

The Transmission Company of Nigeria says it is working to restore power after blackouts engulfed the country following another collapse of the power grid on Monday night.

Power generation fell to zero and by Tuesday morning some plants in the capital Abuja and parts of the commercial city were coming online. Daily average supply has hovered around 4,500 megawatts in recent times until the sixth collapse this year.

Nigeria's grid has shut down due to aging power infrastructure, vandalism and inadequate gas supply for its thermal plants which accounts for over 75% of output. 

Reuters

Related story: Millions in Nigeria have little to no electricity. It’s straining businesses and public services