Power system operator says over 3,000MW remains underutilised despite available generation capacity
Nigeria has lost more than ₦2.376 trillion in capacity payments over the past 12 years due to persistent grid inefficiencies and the inability to fully utilise available electricity generation, the Nigerian Independent System Operator (NISO) has disclosed.
The Managing Director and Chief Executive Officer of NISO, Abdu Bello, made the disclosure at the 11th Nigeria Energy Forum (NEF 2026) in Lagos, where stakeholders called for greater investment in power infrastructure, innovation and local manufacturing to drive sustainable industrialisation.
The conference was held under the theme, “Upscaling Value Addition for Sustainable Industrialisation.”
Represented by NISO’s General Manager, Research, Engr. Deji Ojo, Bello said Nigeria currently has 7,311 megawatts (MW) of available generation capacity as of May 2026, but only an average of 4,222MW is dispatched to consumers.
According to him, about 3,162MW remains stranded and is not converted into economic value, resulting in huge financial losses for the power sector.
“Presently, as of May 2026, we have available generation capacity of 7,311MW, but the average dispatched generation is just 4,222MW. About 3,162MW is stranded capacity and not being converted into economic use,” he said.
Bello noted that the establishment of NISO marks a critical step in repositioning Nigeria’s electricity industry towards operational efficiency, improved market performance, reliability and industrial competitiveness.
He added that the agency’s primary objective is to ensure that available electricity generation translates into real economic growth.
Reliable Electricity Key to Industrial Growth
Speaking at the forum, the Group Managing Director of Odu’a Investment Company Limited, Abdulrahman Yinusa, said reliable electricity remains the foundation for industrial development.
Represented by the company’s Executive Director, Investment and Business Development, Yemi Ajao, Yinusa said Nigeria possesses abundant raw materials but must prioritise local processing and manufacturing to maximise economic benefits.
“Nigeria sits on the raw materials the world wants most. The question is whether we turn them into finished products or keep giving them away cheaply,” he said.
The Chief Executive Officer of All On, Caroline Eboumbou, said Nigeria’s energy future would depend not only on policy and investment but also on the innovation of young entrepreneurs.
Represented by Jadesola Rawa, Senior Grant Associate, she said previous winners of the Tertiary Institutions Student Energy Challenge (TIEC) have continued to receive support through All On’s innovation hub to commercialise their clean energy solutions.
Similarly, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Omatsola Ogbe, stressed the importance of producing goods locally and maximising Nigerian human and material resources to achieve sustainable development.
The Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Khalil Halilu, said the agency is building an ecosystem where innovation is created, manufactured and commercialised locally before competing globally.
Energy Access and Innovation Drive Economic Prosperity
The Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, represented by Senior Adviser on Strategy, Abba Hayatudeen, said sustainable energy would determine the number of businesses revived and jobs created across the country.
The National Coordinator of the GEF Small Grants Programme in Nigeria, Mrs. Ibironke Olubamise, said the programme continues to support communities in tackling environmental challenges while improving livelihoods through targeted financing.
NEF Co-Chair, Engr. Adekunle Makinde said the forum has evolved into a platform that connects young innovators with investors, ensuring promising clean energy projects no longer end up abandoned after graduation.
Providing details of the innovation challenge, Dr. Bamise Olanrewaju, NEF Innovation Director, disclosed that the All On TIEC 4.0 competition attracted 107 project submissions from 36 tertiary institutions across 20 states.
She said Coolbox, developed by Samuel-Rotua Richard of the University of Lagos, emerged as both the overall winner and public choice winner, while AutaNet, led by Fadekemi Haruna, and DP2P Energy Trading, led by Muhammad Abdulraheem, both from the Federal University of Technology, Minna, finished second and third, respectively.
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Other speakers highlighted the role of technology in accelerating industrialisation.
Chief Executive Officer, Africa, KoBold Metals, Mfikeyi Makayi, said artificial intelligence is transforming mineral exploration through advanced sensors, data systems and predictive models.
The Director-General of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, represented by Mrs. Ucheckukwu Ojiakor, reiterated the council’s commitment to promoting efficient utilisation of Nigeria’s raw materials.
Also speaking, MTN Nigeria’s General Manager, Enterprise Sales, Febisola Oyeniyi, said digital technology and sustainability would jointly power Nigeria’s future, while the Director-General of the National Board for Technology Incubation (NBTI), Dr. Kazeem Raji, said the agency was established to bridge the gap between innovation and industrialisation.
In his opening remarks, Chairman of the Nigeria Energy Forum, Dr. Oluwole Daniel Adeuyi, said Africa’s future depends on adding value to its abundant natural resources through competitive manufacturing, innovation, exports and resilient industries.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.