Power Sector in Nigeria Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Nigeria's Power Market Report is Segmented by Power Generation From Sources (thermal, Renewable, and Other Power Generation Sources) and Transmission and Distribution (T&D)). The Report Offers the Market Size and Forecasts in Revenue (USD) for all the Above Segments.

Nigeria Power Market Size

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Nigeria Power Market Summary
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Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 391.69 Million
Market Size (2029) USD 483 Million
CAGR (2024 - 2029) 4.28 %
Market Concentration Medium

Major Players

Nigeria Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Nigeria Power Market Analysis

The Nigeria Power Market size in terms of Equal-4.28 is expected to grow from USD 391.69 million in 2024 to USD 483 million by 2029, at a CAGR of 4.28% during the forecast period (2024-2029).

  • Over the medium term, the increasing energy demand due to increasing industrialization and urbanization activities and penetration of renewable energy is expected to drive the market during the forecasted period.
  • However, the cost associated with the increasing infrastructure for power generation facilities is expected to hinder the growth of the power market.
  • Nevertheless, Distributed Power Generation (DPG) presents significant opportunities for the Nigerian power market.

Nigeria Power Market Trends

Thermal Power Is Expected to Dominate the Market

  • Thermal energy generating sources are one of the major electricity generation sources in the country. The country's significant gas potential is expected to aid in the growth of thermal energy sources during the medium term.
  • Nigeria has significant reserves of natural gas, which serves as a primary fuel for thermal power generation. The country's natural gas reserves are among the largest in the world. This abundance of fuel resources makes thermal power generation a reliable and readily available option for meeting the country's growing electricity demand.
  • Moreover, Nigeria already has an established infrastructure for thermal power generation, including power plants, pipelines, and gas supply networks. This infrastructure provides a foundation for the continued dominance of thermal power generation. It enables efficient fuel supply, transmission, and distribution, making operating and expanding thermal power plants cost-effective.
  • According to the Nigerian Electricity Regulatory Commission, the thermal power generation capacity increased by almost 8% between the first and second quarter of 2022, signifying the heavy reliance of the country's power sector on thermal power sources.
  • Moreover, utilizing domestic fuel resources, such as natural gas, for thermal power generation enhances energy security for Nigeria. By relying on indigenous fuel sources, the country can reduce its dependence on imported energy and mitigate the risks associated with fluctuating international fuel prices or supply disruptions.
  • For instance, in March 2023, a 50 MW gas-fired power plant was commissioned in the Maiduguri region to provide access to electricity to the people living in the region.
  • Therefore, due to the abovementioned points, the thermal segment is expected to dominate during the forecasted period.
Nigeria Power Market: Electricity Generation Mix, in %, Nigeria, Q1 and Q2 2022

Increasing Adaption of Renewable Energy to Drive the Market

  • Nigeria, one of the most populous African countries, plans to diversify its energy mix by shifting toward renewable energy sources, such as solar and wind energy, to reduce the dependence on gas power generation in the country. The country has abundant renewable energy resources, particularly solar, wind, biomass, and small hydropower (SHP).
  • Moreover, the widespread adoption of renewable energy sources will expand power generation capacity in Nigeria. By harnessing the country's abundant renewable resources, the power market can increase its overall capacity, addressing the growing electricity demand and enabling access to electricity for more communities. This expansion can be achieved by constructing utility-scale solar and wind farms, small hydropower plants, and biomass energy projects.
  • Additionally, renewable energy technologies offer an excellent opportunity for rural electrification in Nigeria. Many remote and off-grid areas currently underserved by the traditional power grid can benefit from decentralized renewable energy solutions. Off-grid solar systems, mini-grids, and other distributed renewable energy technologies can provide reliable and affordable electricity to these communities, improving their standard of living and supporting economic development.
  • According to the International Renewable Energy Agency, solar energy installation in the country has been observing steady growth in recent years. In 2022, the installed solar energy capacity in the country was 37 MW, an increase of 12% compared to 2021.
  • In February 2023, Rensource Energy, one of Nigeria's fastest-growing off-grid renewable energy EPC companies, revealed the signing of several projects in the nation, including 1.4 MW of solar energy. Resource intends to build on the new projects as soon as possible this year. The projects will include battery energy storage systems and vary in size from 300 kWp to 700 kWp. This reflects a strong demand for sustainable and affordable electricity in Nigeria.
  • Therefore, due to the points mentioned above, the adoption of renewable energy is expected to increase the power market in the country.
Nigeria Power Market: Solar Energy  Installed Capacity, in MW, Nigeria, 2018-2022

Nigeria Power Industry Overview

The Nigerian power market is semi-consolidated. Some of the major companies (in no particular order) include First Independent Power Ltd., Mainstream Energy Solutions Limited, Transcorp Power Limited, Sapele Power Plc (SPP), and The Transmission Company of Nigeria, among others.

Nigeria Power Market Leaders

  1. First Independent Power Ltd

  2. Mainstream Energy Solutions Limited

  3. Transcorp Power Limited

  4. Sapele Power Plc (SPP)

  5. The Transmission Company of Nigeria

*Disclaimer: Major Players sorted in no particular order

Nigeria Power Market Concentration
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Nigeria Power Market News

  • November 2022: The Nigerian government approved the development of a large-scale hydropower plant with a capacity of 1,650 megawatts (MW). With an estimated cost of USD 3 billion, this project is set to become one of the largest power ventures in the country. The funding for this initiative will be secured through a public-private partnership arrangement. The plant will be in the Benue state, located in the north-central region of Nigeria. This development was announced by Laolu Akande, highlighting the significant progress in Nigeria's power sector.
  • September 2022: The Nigerian government announced a mini hydro power plant would be constructed in the southern region of Nigeria. This project aimed to enhance the installed capacity of hydropower plants in the country, increasing it from 2.1 GW to 2.2 GW. The establishment of this new mini hydro power plant is aligned with the government's objectives of achieving 100% electrification throughout the country by 2030. This initiative demonstrated the ongoing efforts to expand the power infrastructure and improve access to electricity for all Nigerians.

Nigeria Power Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Nigeria Electricity Market Size and Demand Forecast in USD, Until 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

        1. 4.5.1.1 Increasing Power Demand

        2. 4.5.1.2 Increasing Penetration of Renewable Energy

      2. 4.5.2 Restraints

        1. 4.5.2.1 Inadequate Infrastructure in the Country

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Power Generation

      1. 5.1.1 Thermal

      2. 5.1.2 Renewable

      3. 5.1.3 Other Power Generation Sources

    2. 5.2 Power Transmission and Distribution

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Egbin Power PLC

      2. 6.3.2 Transcorp Power Limited

      3. 6.3.3 Seplat Energy PLC

      4. 6.3.4 Abuja Electricity Distribution Company PLC

      5. 6.3.5 BEDC Electricity PLC

      6. 6.3.6 Yola Electricity Distribution Company (YEDC)

      7. 6.3.7 Mainstream Energy Solutions Limited

      8. 6.3.8 Sapele Power Plc (SPP)

      9. 6.3.9 First Independent Power Ltd.

      10. 6.3.10 The Transmission Company of Nigeria

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Adoption of Distributed Power Generation

**Subject to Availability
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Nigeria Power Industry Segmentation

Power generation is the generation of electricity through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it’s a step prior to its delivery to its end users. Then, the process is followed by Transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.

The Nigerian power market is segmented by power generation source and power transmission and distribution (T&D). By power generation, the market is segmented into thermal, renewable, and other sources. 

For each segment, the market sizing and forecasts have been done based on revenue (USD).

Power Generation
Thermal
Renewable
Other Power Generation Sources
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Nigeria Power Market Research FAQs

The Nigeria Power Market size is expected to reach USD 391.69 million in 2024 and grow at a CAGR of 4.28% to reach USD 483 million by 2029.

In 2024, the Nigeria Power Market size is expected to reach USD 391.69 million.

First Independent Power Ltd, Mainstream Energy Solutions Limited, Transcorp Power Limited, Sapele Power Plc (SPP) and The Transmission Company of Nigeria are the major companies operating in the Nigeria Power Market.

In 2023, the Nigeria Power Market size was estimated at USD 374.93 million. The report covers the Nigeria Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Nigeria Power Industry Report

Statistics for the 2024 Nigeria Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nigeria Power analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Power Sector in Nigeria Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)