Nigeria's electricity regulator, the Nigerian Electricity Regulatory Commission (NERC), has instructed the grid operator to decrease electricity exports to overseas customers (Benin Republic, Niger, and Togo)

in order to enhance domestic supply.

In a directive issued recently, NERC highlighted that the grid operator's prioritization of supply to international customers, under bilateral contracts, has resulted in significant challenges for Nigerian consumers. To address this, NERC has imposed a 6% cap on total grid generation available to international off-takers for the next six months, starting from May 1.

While Nigerian power firms have agreements with neighboring African nations to export electricity, delays in payment have been a recurring issue. This move aims to alleviate domestic power shortages exacerbated by recent tariff hikes, which were intended to provide more consistent power but have not been fully realized due to supply constraints.

The decision to limit overseas sales could introduce operational uncertainties, requiring adjustments in production and distribution by power generation companies. Moreover, it may exacerbate financial strains by reducing revenue from foreign customers and necessitate debt repayment from distribution firms.

Since the directive, electricity supply from the national grid has increased, surpassing 4,700 megawatts compared to the previous weeks' levels below 3,000 megawatts. However, challenges persist, including lax terms in international contracts and unpaid debts owed by international customers, totaling $12.02 million according to a report by NERC.

The move underscores Nigeria's commitment to prioritize domestic electricity needs while seeking to address systemic issues within the power sector to ensure sustainable and reliable energy provision for its citizens.