The Federal Government of Nigeria has announced ambitious plans to generate approximately N1.49 trillion ($998.6 million) in annual revenue through electricity exports to 15 West African countries, marking a significant milestone in the nation's energy sector development.
Historic Grid Synchronization Achievement
Nigeria successfully conducted a groundbreaking grid synchronization test with 15 West African countries on November 8, 2025, operating for four continuous hours between 05:04 am and 09:04 am. This technical achievement involved the Nigerian grid connecting with the Niger Republic, parts of Benin and Togo, and the broader West African interconnected systems.
Power Minister Chief Adebayo Adelabu confirmed that the four-hour power transmission across national borders maintained a single stable frequency, demonstrating Africa's technical capability to function as a unified power bloc. The minister revealed that the government is working toward establishing permanent grid synchronization by June 2026, with a second 48-hour test run planned after all preparations are completed.
Economic Benefits and Revenue Projections
According to data from the Nigerian Electricity Regulatory Commission (NERC), Nigeria currently offers some of the lowest electricity tariffs in West Africa at approximately $0.07 per kilowatt-hour, compared to the regional average of $0.19 per kWh in neighboring countries.
Edmund Eje, Executive Director of Market Operations at the Nigerian Independent System Operator, confirmed that Nigeria is currently allocating 600MW daily for bilateral power trade agreements. Analysis shows that exporting this capacity at regional tariffs would generate approximately $114,000 hourly, translating to about $2.73 million daily and nearly $1 billion annually.
Domestic Infrastructure Development
Minister Adelabu emphasized that the power export initiative will directly benefit Nigerian citizens through improved domestic infrastructure. He highlighted several ongoing transmission expansion projects that will enhance reliability nationwide, including the North-Core transmission line, Ajegunle 330 kV Substation, Kaduna-Kano transmission upgrades, and the Gwagwalada-Gurara connection.
The minister noted that Nigeria's grid capacity currently stands at 8,500MW, with generation reaching 8,000MW, ensuring smooth power transmission. However, he acknowledged that while Nigeria has the capacity to generate more power, additional investment is needed to meet demand from other West African nations.
This development comes as electricity distribution companies reported improved collection efficiency, with DisCos collecting ₦565 billion in revenue during the second quarter of 2025, led by Eko, Ikeja, and Abuja distribution companies.
