The Federal Government is forecasting almost $1 billion (approximately N1.49 trillion) in yearly revenue from exporting electricity to 15 West African countries under the Economic Community of West African States sub-region, starting in June 2026.

This earning projection is based on the potential revenue from exporting a full 600 megawatts capacity, billed at the prevailing regional tariff, as Nigeria advances toward full participation in the West African power market following a historic grid synchronisation exercise conducted this month.

The Minister of Power, Chief Adebayo Adelabu, hinted at this new revenue stream during a press conference in Abuja on Wednesday, where he revealed that Nigeria successfully completed a four-hour grid synchronisation test with 15 West African countries on November 8, 2025.

He stated that this development positions Nigeria to fully capitalize on its strategic role as the regional power hub within the West African Power Pool, particularly as generation companies increase their compliance with free-governor control, an operational discipline vital for regional grid stability.

The successful grid synchronisation test connected the Nigerian national electricity grid with the interconnected WAPP system on November 8, 2025.
The synchronisation exercise took place between 05:04 am and 09:04 am.

It involved the Nigerian grid, which already includes the Niger Republic and parts of Benin and Togo, linking up with the rest of West Africa’s interconnected systems, covering Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea-Bissau, and Mali.

The minister reported that for four continuous hours, electricity flowed seamlessly across national borders, operating at a single stable frequency.

This proved that West Africa is now technically capable of functioning as a unified power bloc. This exercise represents the first time in history that Nigeria has operated in a unified, stable, and fully harmonized configuration with the rest of the sub-region.

Beyond this recent achievement, the minister announced that the government is aiming for permanent grid synchronisation by June 2026, with a second 48-hour test run planned once current discussions with regional operators are finalized.

Edmund Eje, the Executive Director, Market Operations at the Nigerian Independent System Operator, confirmed that Nigeria currently allocates 600MW for its daily bilateral power trade agreements. Data from the Nigerian Electricity Regulatory Commission indicates that Nigeria continues to offer the most competitive electricity tariffs in West Africa.

NERC figures show that the average approved end-user tariff in Nigeria is approximately $0.07 per kilowatt-hour (kWh) (about N100.27/kWh), which is only 35.71 percent of the average $0.19/kWh charged by several other countries in the sub-region.

If exported power is charged at this regional tariff, government officials estimate that supplying the full 600MW allocation could generate nearly $1 billion in annual revenue.

A detailed breakdown of the figures shows that exporting 600MW (equivalent to 600,000 kilowatts) at the prevailing regional tariff of $0.19 per kilowatt-hour would yield about $114,000 hourly. This equates to roughly $2.73 million daily and an estimated $998.6 million in annual revenue.

This projection relies on the assumption of uninterrupted export of the contracted volume once permanent grid synchronisation is achieved around the tentative date of June 2026. Officials suggest this revenue stream could provide a crucial financial cushion for the power sector, help reduce liquidity deficits, and expedite the expansion of regional energy markets.

The government, however, gave assurances to domestic electricity consumers that exporting power to West African countries will not negatively impact supply within the local market. Further in his address, Adelabu noted that the milestone is the most successful synchronisation attempt since 2007, when a trial failed after just seven minutes.

He stated: “The benefits of synchronisation with other WAPP countries would extend directly to the Nigerian people. A more stable grid improves the performance of essential services such as hospitals, water supply, transport systems, digital infrastructure, and public institutions.”

The Minister continued: “As ongoing transmission expansion projects, including the North-Core line, the Ajegunle 330 kV Substation, the Kaduna–Kano transmission upgrades, and the Gwagwalada–Gurara connection, are completed, synchronisation will help deliver more reliable power to homes and industries nationwide. While expectations must remain realistic, this achievement provides the structural foundation for the improvements Nigerians have long awaited.”

The minister also disclosed that Nigeria’s transmission wheeling capacity has increased to 8,500MW, establishing a more robust backbone for future export commitments.

However, despite this capacity, low demand from electricity distribution companies has kept actual generation at approximately 5,000MW, leaving about 3,500MW stranded within the Nigerian Electricity Supply Industry. The industry achieved an all-time generation peak of 5,801.44MW earlier this year.

He stressed the available capacity: “Today, the minimum grid capacity we can even communicate is 8,500MW of capacity. If our generation reaches 8,000MW today, the grid can comfortably and conveniently transmit it. We are even sure that it is higher than that, but it is put at a conservative level, at 8,500 MW.”

Adelabu affirmed Nigeria’s potential for expansion, stating: “We have the capacity and the facility to generate more power in Nigeria, and investment is still open to interested power sector investors. As long as there is demand in the other 14 countries of West Africa, Nigeria can easily export energy to those countries.”

Earlier, during the NISO Maiden Stakeholders’ Engagement titled “Building a Resilient and Competitive Electricity Market – The Role of NISO,” Managing Director Abdul Mohammed said the successful grid synchronisation is more than just a technical achievement.

Nafisatu Ali, NISO Executive Director for Systems Operation, reported that 60 percent of Nigeria’s power-generating plants have now adopted the operational regime of free governor control, significantly enhancing the country’s readiness for cross-border electricity trade.

She clarified that compliance has steadily improved since the Nigerian Electricity Regulatory Commission issued the directive on governor control.

She mentioned: “Before now, compliance was very low, about 20 per cent. But as of the last check two days ago, at least 60 per cent of generators have implemented the three-governor system.”

Ali noted that this progress was demonstrated during the recent grid synchronisation test, where a generator tripped in Côte d’Ivoire, and Nigerian generators responded automatically, successfully maintaining stability.

She concluded: “The intention is to achieve 100 per cent compliance. This system has already improved grid resilience, ensuring automatic responses whenever there is a tripping event.”

The Free Governor Control is a vital operational mechanism in power systems that permits generating units to automatically adjust in response to changes in grid frequency. When a generator trips or demand suddenly surges, FGC allows other units to instantly modify their output, stabilizing the grid without requiring manual intervention.

With the FGC system in place, Nigerian Generation Companies (Gencos) can automatically react to frequency disturbances, thereby reducing grid instability and strengthening investor confidence in the nation’s electricity market.