The Federal Government is projecting nearly $1 billion (about N1.49 trillion) in annual revenue from electricity exports to 15 West African countries under the Economic Community of West African States (ECOWAS) sub-region, starting June 2026.

The anticipated earnings are based on the full 600-megawatt export capacity at current regional tariffs, as Nigeria moves toward full participation in the West African power market following a historic grid synchronisation exercise conducted earlier this month.

Power Minister Chief Adebayo Adelabu revealed the potential revenue at a press briefing in Abuja, announcing that Nigeria successfully carried out a four-hour grid synchronisation test with 15 West African countries on November 8, 2025.

He explained that the exercise positions Nigeria to fully leverage its role as the region’s power hub under the West African Power Pool (WAPP), especially as generation companies continue to adopt free-governor control—an operational discipline vital for regional grid stability.

Historic Grid Synchronisation Achieved

On November 8, Nigeria’s national electricity grid was successfully synchronised with the interconnected WAPP system from 5:04 a.m. to 9:04 a.m. The exercise connected Nigeria, parts of Benin and Togo, and the Niger Republic with other West African systems including Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea-Bissau, and Mali.

For four uninterrupted hours, power flowed seamlessly across borders at a single stable frequency, marking the first time Nigeria operated in a fully harmonised configuration with the sub-region.

Looking ahead, the government aims for permanent grid synchronisation by June 2026, with a second 48-hour test planned once ongoing discussions with regional operators conclude.

Revenue Potential from Power Exports

According to Edmund Eje, Executive Director of Market Operations at the Nigerian Independent System Operator (NISO), Nigeria currently allocates 600MW daily for bilateral power trade agreements. Data from the Nigerian Electricity Regulatory Commission (NERC) shows Nigeria continues to offer the lowest electricity tariffs in West Africa—around $0.07 per kilowatt-hour (≈N100.27/kWh), only 36% of the average $0.19/kWh charged by other countries in the region.

If exported at the prevailing regional tariff of $0.19/kWh, 600MW could generate approximately $114,000 per hour, $2.73 million daily, and nearly $998.6 million annually. Officials note this revenue could provide a vital buffer for the power sector, reduce liquidity shortfalls, and accelerate regional energy market growth.

The government assured that electricity exports would not compromise domestic supply. Adelabu described the synchronisation as the most successful since a failed trial in 2007.

“The benefits of synchronisation with other WAPP countries will extend directly to Nigerians. A more stable grid improves essential services like hospitals, water supply, transport systems, digital infrastructure, and public institutions,” he said.

Ongoing transmission projects, including the North-Core line, the Ajegunle 330 kV Substation, the Kaduna–Kano transmission upgrades, and the Gwagwalada–Gurara connection, are expected to further improve reliability for both domestic and regional power delivery.

Transmission Capacity and Grid Readiness

Nigeria’s transmission wheeling capacity has risen to 8,500MW, providing a robust backbone for future export commitments. Despite this, low demand from distribution companies has kept actual generation at around 5,000MW, leaving roughly 3,500MW idle. Earlier this year, the industry recorded an all-time generation peak of 5,801.44MW.

Adelabu said, “Our grid can comfortably handle 8,500MW. With increased generation and regional demand, Nigeria can efficiently export surplus energy.”

NISO officials highlighted that 60% of Nigeria’s power plants now comply with free-governor control (FGC), a system that allows generators to automatically respond to frequency fluctuations. Prior compliance was just 20%, but recent improvements were evident during the synchronisation test when Nigerian generators responded automatically to a generator trip in Côte d’Ivoire, maintaining grid stability.

FGC ensures that power units adjust output instantly during sudden demand spikes or generator failures, reducing grid instability and enhancing investor confidence in Nigeria’s electricity market.