Nigeria’s electricity needs could reach approximately 100,000 megawatts (MW) if the country hopes to achieve meaningful industrial expansion and sustain long-term economic growth, former Minister of Power, Professor Barth Nnaji, has said.
Nnaji made the observation at the Lagos Country Club Business Forum 3.0 in Lagos, where industry stakeholders discussed the rising cost of energy and the difficulties facing businesses across the country. He argued that Nigeria’s existing electricity infrastructure remains inadequate for an economy with growing industrial, commercial and residential demands.
According to the former minister, Nigeria has an estimated electricity generation capacity of about 13,000MW. However, the amount of power that reaches the national grid remains significantly lower, with only between 4,000MW and 5,000MW available for distribution.
He explained that the difference between installed generation capacity and actual electricity supply reflects deeper problems within the power sector, particularly weaknesses in transmission infrastructure, gas supply limitations and financial constraints affecting electricity operators.
Nnaji maintained that the country cannot achieve its economic ambitions without a substantial improvement in electricity generation and the infrastructure required to deliver power to consumers.
Nigeria Electricity Needs Exceed Current Generation Capacity
The former minister, who also serves as Chairman of Geometric Power Group, stressed that Nigeria must reconsider its approach to electricity development if it intends to support a stronger manufacturing base and attract more private investment.
He noted that the country’s electricity supply remains far below the level required to support higher-middle-income economic status, adding that reliable power is essential for industries that depend on continuous production and efficient operations.
Nnaji also raised concerns about the 2013 privatisation of the defunct Power Holding Company of Nigeria, arguing that the exercise did not adequately address the long-term investment requirements of the industry.
According to him, the process placed considerable emphasis on immediate financial returns, while the sector needed investors prepared to commit substantial resources to infrastructure development and operational improvements.
He further disclosed that loans and debts within the electricity industry had exceeded ₦7 trillion, citing figures from the Association of Power Generation Companies of Nigeria.
The former minister explained that electricity investments require considerable financial commitment and patience because major infrastructure projects do not generate immediate returns. Some projects, he noted, may take between seven and 10 years to become profitable.
He therefore called for policies that would create a more attractive investment environment, improve the financial stability of electricity operators and encourage private participation in expanding the country’s power infrastructure.
Manufacturers Spend ₦1.34 Trillion on Alternative Electricity
The financial consequences of Nigeria’s electricity challenges were also highlighted by the immediate past President of the Manufacturers Association of Nigeria, Francis Meshioye, who disclosed that manufacturers spent more than ₦1.34 trillion on alternative electricity generation in 2025.
Meshioye explained that the high cost of energy has become a major burden for businesses, particularly manufacturers that require consistent electricity to operate machinery, preserve products and maintain production schedules.
He stated that energy expenses consume as much as 60 per cent of operating profits in some businesses, leaving companies with fewer resources for expansion, equipment upgrades and other essential investments.
The development has increased pressure on manufacturers that already face high production expenses, rising operational costs and difficulties maintaining competitive prices in the Nigerian market.
For many businesses, relying on diesel generators and other alternative energy sources has become necessary because electricity from the national grid cannot consistently meet their operational requirements. However, these alternatives often increase production costs and make locally manufactured goods more expensive.
Meshioye consequently called for improvements in electricity infrastructure, stressing the importance of affordable and reliable energy to the survival and competitiveness of Nigerian businesses.
Reliable Electricity Remains Critical to Economic Growth
The call for 100,000MW of electricity capacity reflects the scale of Nigeria’s energy requirements and the investment needed to address its persistent supply challenges.
Beyond manufacturing, inadequate electricity affects small businesses, commercial establishments, households and essential services, many of which depend on alternative power sources to maintain daily operations.
Although expanding generation capacity remains important, Nigeria must also strengthen its transmission and distribution networks to ensure that additional electricity can reach consumers without significant losses or interruptions.
The government and private investors will therefore need to address the structural and financial problems affecting the industry while developing sustainable strategies for expanding electricity infrastructure.
Nnaji’s remarks have brought renewed attention to the relationship between reliable electricity and national development, particularly as Nigeria seeks to strengthen its industrial base, improve business productivity and create a more competitive economy.