Nigeria is still struggling to make the most of its electricity infrastructure, with new data showing that less than half of its generation capacity is actually being utilised.

Figures from the Nigerian Electricity Regulatory Commission (NERC) revealed that while the country has 13,625 megawatts (MW) of installed generation capacity, only about 5,577MW was available in July. Out of this, just 4,340MWh/h was supplied to the grid, meaning most of the capacity remained unused.

This gap, known as stranded power, highlights how weak transmission lines, poor distribution networks, gas shortages, and mounting debts continue to cripple the sector. For instance, Olorunsogo-2, designed to generate 750MW, only managed 42MW last month, while Alaoji-1, with 500MW capacity, produced nothing at all.

Some plants performed better despite challenges. Egbin, Nigeria’s largest station with 1,320MW installed capacity, generated 665MWh/h at a high utilisation rate. Kainji and Okpai also recorded strong output compared to their available capacity.

Still, the wider picture is troubling. With national demand estimated at 30,000MW, Nigeria continues to deliver less than 5,000MW to the grid, forcing homes and businesses to rely on costly diesel and petrol generators. The situation is worsened by more than N4 trillion in debts owed to power producers, discouraging new investments in the sector.

NERC also noted grid instability in July, with frequency and voltage levels falling outside acceptable limits. In addition, about 2,000MW from the National Integrated Power Projects could not be dispatched due to weak transmission and low uptake by distribution companies (Discos).

Analysts warn that unless urgent reforms are carried out — including upgrading transmission lines, improving gas supply, and adopting fairer pricing — Nigeria will remain locked in a cycle of stranded power and chronic electricity shortages.