The Nigerian electricity sector experienced a slowdown in the fourth quarter of 2024, as the electricity production index fell by 1.64% year-on-year (y-o-y).
This marks a shift from the 5.55% growth recorded in the previous quarter, Q3 2024, as data from the Central Bank of Nigeria (CBN) reveals a reversal in the sector’s performance.
Despite this decline, average electricity generation showed modest growth. It rose by 2.34%, reaching 4,206.50 megawatts per hour (MW/h) in Q4 2024, up from 4,110.47 MW/h in Q3 2024. Similarly, electricity consumption saw a slight increase of 2.63%, rising to 4,105.66 MW/h from 4,000.24 MW/h in the preceding quarter.
On a quarter-on-quarter (q-o-q) basis, the electricity sector demonstrated signs of recovery, with the index increasing by 22.50%. This marked a significant improvement from the steep decline of 49.46% recorded in Q3 2024.
This recovery comes in the context of a broader economic expansion in Q4 2024, with 21 out of 22 sectors experiencing positive growth. Factors contributing to this momentum include improved business confidence, rising consumer spending, and strong performance across key industries like agriculture, manufacturing, and telecommunications.
The government’s fiscal and monetary policies, designed to stabilize inflation and promote investment, also played a role in supporting this growth. Moreover, the sector benefitted from a steady gas supply to thermal power stations, alongside ongoing progress in the Siemens Power Project, which has bolstered Nigeria’s power generation, transmission, and distribution capabilities.
In addition, the oil and gas sector benefitted from relatively stable crude oil prices and improved domestic production, contributing to overall economic expansion. Notably, the non-oil sector, especially fintech and digital services, has been a key driver of economic activity, underlining the growing diversification of Nigeria’s economy.
While the electricity sector experienced a slight dip, the overall outlook for the economy and energy sector shows promising signs of recovery.
