Nigerian Electricity Regulatory Commission Approves New CI Capacity To Boost Industrial Power Supply In Nigeria

The Nigerian Electricity Regulatory Commission (NERC) has approved a major expansion of electricity supply capacity under the “Eligible Customer” and “Content Integrated” (CI) frameworks. This move is seen as an important step in improving Nigeria’s power sector by allowing electricity generation companies to directly supply power to large industrial and commercial consumers.

The approval is part of the government’s broader effort to reduce the pressure on the national electricity grid and improve power reliability for businesses. Under the new arrangement, qualified customers with strong technical and financial capacity can enter into direct agreements with power generation companies. This “willing seller, willing buyer” system is supported by the Electricity Act 2023, which encourages decentralization and private sector participation in the electricity market.

Nigeria has long struggled with a major gap between installed power generation capacity and the electricity actually delivered to consumers. Although the country has more than 13,000 MW of installed capacity, available generation frequently remains around 4,000 MW because of gas supply challenges, weak transmission infrastructure, and outdated equipment. The newly approved CI capacity is expected to help generation companies make better use of their available output by supplying electricity directly to customers capable of paying cost-reflective tariffs.

The development is also expected to support industrial growth across the country. Many Nigerian industries, including cement plants, steel factories, and technology parks, currently depend heavily on costly diesel generators due to unreliable grid power. With access to a dedicated electricity supply through CI agreements, these businesses are expected to benefit from more stable and affordable energy, reducing operational costs and improving productivity.

NERC has stated that regulatory supervision will remain important throughout the implementation process. According to the commission, all approved projects and agreements must comply with technical standards to ensure that the stability of the national grid is not affected. Part of the revenue generated from these direct power arrangements may also be used to support wider development within Nigeria’s electricity sector.

Industry experts believe the approval of additional CI capacity could help create a more flexible and competitive electricity market while encouraging further investment in Nigeria’s energy infrastructure.