Nigeria’s electricity industry experienced a slowdown in the last quarter of 2024, with the power generation index dropping by 1.64% compared to the same period in the previous year, according to data from the Central Bank of Nigeria (CBN).
This decline marks a shift from the 5.55% growth seen in the third quarter.
Despite the contraction, average estimated electricity generation increased by 2.34% to 4,206.50 megawatts per hour (MW/h), up from 4,110.47 MW/h in the previous quarter. Consumption also rose by 2.63% to 4,105.66 MW/h.
On a quarter-on-quarter basis, the sector showed signs of recovery, with the index rising by 22.50%, bouncing back from a sharp 49.46% decline in Q3.
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The CBN attributed the improvement to better gas supply to thermal power plants and ongoing implementation of the Siemens Power Project, which has enhanced generation, transmission, and distribution networks.
Meanwhile, the broader economy saw significant expansion, with 21 out of 22 subsectors posting growth.
The central bank credited this to improved business confidence, increased consumer spending, and strong performances in agriculture, manufacturing, and telecommunications.
The oil and gas sector also benefited from stable crude oil prices and improved domestic production, while the non-oil sector, particularly fintech and digital services, played a key role in driving economic activity.